India, Feb. 20 -- Swiggy Shutters SNACC

Swiggy has pulled the plug on its 15-minute food delivery app, SNACC. While the foodtech major internally suggested that a product-market fit was emerging for the vertical, the reality of high operational costs forced a retreat. So, why did Swiggy shut down SNACC?

The Flailing Economics: Launched as a pilot in Bengaluru and Gurugram last year, SNACC offered snacks, breakfast, and bakery items in under 15 minutes. In an internal memo, Swiggy said that while users liked the service, the broader economics simply didn't work.

What this means is that margins on a Rs.200 snack order often turn negative when one factors in rentals, specialised packaging to keep food fresh, and the cost of dedicated ride...