Swiggy‘s Snacc app is missing from Google Playstore following the news that the company has decided to shut down Snacc, a dedicated app it launched for 15-minute food deliveries, about a year after its rollout, sources told financialexpress.com
The reason behind this action is possibly the profitability aspect. The company reportedly is struggling to make the service profitable.
According to the email, sent on 19 February, said that while Snacc was beginning to show early signs of product-market fit, the broader economics made it difficult to scale, Moneycontrol reported.
“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,” the email, cited by Moneycontrol, said. The email also mentioned that the Snacc employees will be absorbed into other verticals.
“The company is concentrating on segments that have the potential to grow in the long term. Meanwhile, the other segments like the food delivery business, Boult and 99 store are working well,” an internal source told financialexpress.com.
Fast food delivery faces margin pressure
During the Q3 shareholder letter, Swiggy’s CEO had mentioned that they would not be deep diving into discounts. “We have consciously chosen not to participate in deep-discount-driven, purely volume-focused growth that sacrifices AOVs and margins,” Majety said. During the same period, Swiggy also removed the free delivery claims on Instamart, its quick delivery model.
Snacc was brought in as a competition to Blinkit’s Bistro and Zepto Cafe.
Unlike packaged goods, food orders involve more operational complexity, ranging from preparation time and quality control to higher rider costs, making the economics tougher to sustain at scale. In its Q3 shareholder letter, the company had mentioned that Snacc and Toing are experiments built on a different chassis than its core food delivery engine.
Swiggy reported a 33% year-on-year rise in consolidated net loss to Rs 1,065 crore for Q3FY26, even as operating revenue surged 54% to Rs 6,148 crore. Its quick-commerce unit Instamart saw losses widen 50% to Rs 791 crore, despite revenue jumping 76% to Rs 1,016 crore. The company’s platform innovations segment, under which Snacc falls, amounted to a revenue of Rs 9 crore, a 59% decrease year-on-year. The losses for the segment went upto Rs 40 crore.
Blinkit Bistro’s losses underline the challenge
Moneycontrol said the email did not disclose how many orders Snacc was clocking or what revenue it generated. However, it cited Blinkit Bistro, a comparable offering at a larger scale, as an indicator of the sector’s cost structure.
Blinkit Bistro lost around Rs 150 crore while earning less than Rs 20 crore in sales over a nine-month period.
Apart from the already present competition in the segment, Rapido, a ride-hailing app, has also announced its intentions to enter food delivery with a collaboration with ONDC.
Swiggy share price
Swiggy’s stock was down 2.16% as of Thursday’s market closing. The company’s stock was down 2.16% in the past month and down 13.47% in the last 1 year.