Swiggy Shuts Down Its Hyperlocal Delivery Arm Genie: Report
In a recent development, Swiggy, one of India’s leading food delivery companies, has shut down its hyperlocal delivery arm Genie to focus more on its food and grocery delivery services. According to a report by Moneycontrol, the decision comes after the revenue generated by Genie was not encouraging enough to continue its service.
Swiggy had initially launched Genie in 2019 as a hyperlocal delivery service that aimed to deliver essentials such as groceries, fruits, and vegetables to customers’ doorstep within 60 minutes. The service was available in select cities, including Delhi NCR, Mumbai, and Bengaluru.
In a shocking turn of events, Genie was temporarily suspended in these cities earlier this week. At the time, Swiggy had announced that it was working towards bringing back Genie, but it appears that the company has now decided to shut down the service altogether.
The decision to shut down Genie comes as a surprise to many, considering the hype surrounding the hyperlocal delivery space in recent years. Several startups, including BigBasket, Grofers, and Zepto, have made significant investments in the space, hoping to capitalize on the growing demand for instant delivery of essentials.
Swiggy, which has been focusing on its food delivery business for some time now, may have decided to prioritize its core offerings and exit the hyperlocal delivery space. The company’s food delivery business has been growing rapidly, and it may be that Swiggy wants to focus its resources on this area.
The decision to shut down Genie may also be attributed to the increasing competition in the hyperlocal delivery space. With several established players and new entrants vying for market share, it may be challenging for Genie to scale and generate sufficient revenue.
Swiggy’s decision to shut down Genie is likely to have a significant impact on the company’s operations and employees. While the company has not made any official statements regarding job losses, it is likely that many employees will be affected by the decision.
In conclusion, Swiggy’s decision to shut down Genie is a significant development in the Indian startup ecosystem. While the company’s focus on its food and grocery delivery services is likely to benefit its bottom line, the decision also raises questions about the viability of the hyperlocal delivery space in India.
