Pilot quick-meal platform discontinued after limited scale, competition intensifies in rapid-delivery segment as losses widen
Food and grocery delivery platform Swiggy has shut down Snacc, its standalone 15-minute food delivery application, about a year after launching it on a pilot basis, in a move that underscores tighter capital discipline amid widening losses and intensifying competition.
Snacc was introduced as an experimental offering and operated in Bengaluru and Gurugram. However, the service did not achieve significant scale over the past 12 months, according to people familiar with the development. Its closure comes at a time when competition in the rapid-meal delivery segment is escalating, with both established players and new entrants expanding their presence.
Rival Blinkit has rolled out Bistro as a separate food-focused app, while Zepto launched Zepto Cafe under a dedicated interface. Smaller startups, including Accel-backed Swish, have also begun to see early traction in the quick-service food category. Meanwhile, ride-hailing platform Rapido is preparing to enter the food delivery market, further intensifying competitive pressures.
Swiggy did not respond to queries seeking comment. A person aware of the matter said employees affected by the shutdown would be redeployed within the organisation. “We are absorbing people under our different businesses and providing them with transition support,” the person said.
Financial Headwinds Persist
The closure comes against the backdrop of continued financial strain. Swiggy recently completed a Rs 10,000 crore qualified institutional placement on 12 December, raising capital from institutional investors to bolster its balance sheet and support the expansion of Instamart, along with investments in logistics and technology infrastructure.
In the third quarter of FY26, Swiggy reported a consolidated net loss of Rs 1,065 crore, compared with Rs 799 crore in the year-ago period. Revenue from operations rose 54 per cent year-on-year to Rs 6,148 crore, up from Rs 3,993 crore in the corresponding quarter last year.
The decision to discontinue Snacc points to a strategic recalibration of Swiggy’s ultra-fast food delivery ambitions, even as rivals continue to invest in rapid-delivery formats. With capital turning more selective and competition sharpening, companies in the segment appear to be prioritising operational efficiency and disciplined expansion over aggressive experimentation.
