Prosus-backed Indian food tech giant Swiggy has announced that it will be discontinuing its premium grocery delivery pilot program, Handpicked, which was being tested in various parts of Bengaluru. While the company has confirmed that no jobs have been impacted so far from this move, it remains unclear if there will be any future impact on the company’s employees or operations.
In a statement, a Swiggy 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.”
The company has been focusing on cost-cutting and disposing of non-viable business verticals in its efforts to achieve profitability and potentially make a debut on the stock market soon. Business Today had reported a few days prior that Swiggy had started charging a platform fee of Rs 2 on food orders being delivered in cities such as Bengaluru, Hyderabad, and Chennai, a move which is said to help the company “operate and improve our platform and enhance app features to deliver a seamless app experience.” However, this fee is not being charged on orders made on Swiggy’s quick commerce vertical, Instamart.
Swiggy has also shut down its meat marketplace vertical in January and laid off 380 employees as part of a company-wide restructuring activity. Despite achieving a “decacorn” status last year, following a $700 million investment from US-based investment firm Invesco, the company’s recent filings have revealed that its valuation has been slashed from $10.7 billion to $8 billion.