Market Performance
The Indian food delivery space is witnessing a shake-up as Swiggy, one of the country’s largest players, has decided to close its Snacc platform. The move comes amid challenges in making ultra-fast, 10-minute food delivery profitable. Swiggy’s decision reflects the broader struggle of the segment to balance speed with sustainable economics.
- Swiggy share price today: Active market tracking shows investors closely watching the impact of Snacc’s closure.
- Sector trend: The hyper-competitive food delivery market is seeing rapid experimentation, but profitability remains a hurdle for rapid delivery models.
Swiggy Shuts Down Snacc: The Story Behind the Decision
Swiggy launched Snacc in January 2025 as a pilot for 15-minute deliveries. The concept was simple—deliver coffee, breakfast, and quick meals to customers who couldn’t plan their day around traditional 30–40 minute delivery windows.
However, despite initial traction, Snacc struggled with unit economics. Internal communication shared on February 19 highlighted:
“While the product market fit was emerging, the broader economics made it challenging to scale. We want to concentrate all our energies on innovation that drives stronger long term potential. In line with this, we have taken this decision.”
Snacc’s closure is part of a broader focus on consolidating Swiggy’s operations and prioritizing units that have long-term potential.
Food Delivery Competition: Fast, but Expensive
The closure of Snacc underscores the challenges in the ultra-fast delivery segment. Other players like Blinkit and Zepto also launched 10–15 minute delivery platforms but faced high operational costs:
- Blinkit’s Bistro: Reportedly lost around ₹150 crore while generating under ₹20 crore in sales over nine months.
- Other competitors: Zepto Cafe and Accel-funded Swish gained traction, but profitability remained elusive.
Even mobility platform Rapido is exploring entry into the food delivery segment, signaling increased competition and experimentation across the market.
Swiggy’s Operational Focus
Snacc operated mainly in Bengaluru and Gurugram and had limited scale. Swiggy plans to manage employee transitions over the next 48 hours, reallocating resources within the company’s other verticals.
- Quick launch: The Snacc app went live on Play Store and App Store within just 16 days of conceptualization.
- Product offerings: Indian breakfast, coffee, bakery items, short eats, cold beverages, eggs, protein items. Mix of branded partnerships (like The Whole Truth) and third-party sourced products.
Sriharsha Majety, Swiggy Group CEO, explained that Snacc aimed to serve customers who need food on the go:
“There are many times when you can’t plan your life around 30–40 minute deliveries. If you’re heading out in 20 minutes or have a short lunch break, ultra-fast delivery solves that need.”
Experiments Continue, Despite Snacc Closure
While Snacc did not scale as hoped, Swiggy continues to invest in innovation across its ecosystem. Initiatives like Bolt, 99Store, and Toing remain active as the company experiments with new formats.
Rohit Kapoor, Food Delivery CEO at Swiggy, emphasized:
“Whenever we see an opportunity to experiment, we have not stopped. Strong ideas still get investment, even if interim units like Snacc close.”
This highlights Swiggy’s approach: balancing profitability pressures with a willingness to experiment and learn from short-term pilots.
Summary
- Swiggy has shut down Snacc after a year of operations due to unprofitable economics.
- Snacc targeted 10–15 minute deliveries of breakfast, coffee, and quick meals in Bengaluru and Gurugram.
- Competitors like Blinkit and Zepto also struggled in the ultra-fast delivery segment.
- Employees impacted by the closure will be absorbed into other Swiggy verticals with transition support.
- Swiggy remains committed to innovation and experimentation across its food delivery ecosystem.
Source: Moneycontrol
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