Prosus-backed Swiggy, the online food ordering and delivery platform has pulled the plug on Handpicked, its premium grocery delivery pilot program. The food-tech major’s spokesperson confirmed the development and revealed that the stunt has not impacted any jobs so far.
While speaking about the development, the spokesperson said, “At Swiggy we’re continuously experimenting with new propositions in line with our vision to enable unparalleled convenience to consumers. Handpicked was being piloted in a few zones in Bengaluru and we have had several positive learnings from it.”
Prior to shutting down Handpicked, Swiggy offered a variety of high-end, gourmet, imported, and challenging-to-find grocery items. The premium grocery delivery program was being piloted in a few zones in Bengaluru. This development came post-Swiggy’s announcement of charging a platform fee of Rs 2 on every order, irrespective if the cart value.
These additional charges are introduced in Bangalore and Hyderabad as the company aims to control its costs. As per the food tech giant, the charging fee aids them in operating and improving their platform in addition to enhancing app features to provide a seamless app experience. Hence, the company will also roll this out in major cities like Delhi and Mumbai.
Meanwhile, Swiggy has also been working to reduce expenses, get rid of non-profitable company divisions, and pursue profitability. According to reports, the corporation is making preparations to list on the public market soon.
In January, the business closed its meat markets division and fired 380 workers as part of a company-wide restructuring effort. After receiving roughly $700 million from the US-based investment company Invesco, Swiggy became a “decacorn” last year. A recent filing, however, showed that Invesco had reduced Swiggy’s valuation from $10.7 billion to $8 billion. On the other hand, in the food-tech space, Pluckk, a digital fresh food brand in the fruits and vegetables (F&V) space, has paid $1.3 million to acquire KOOK, an Indian food-tech firm that provides customers with a variety of DIY Meal Kits.
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