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Swiggy has shut down the “Snacc” App, and the 10-minute food delivery model has turned out to be loss-making!

Swiggy has shut down the “Snacc” App, and the 10-minute food delivery model has turned out to be loss-making!

A big update has come from India’s food delivery market.

Food and grocery delivery giant Swiggy has decided to officially shut down its 15-minute food delivery app “Snacc.”

Swiggy launched this app in January 2025, but within just one year, the company has taken the step to close it.

According to Moneycontrol, this decision was taken based on Swiggy’s internal email.

Swiggy clearly mentioned in the internal email:

“The product market fit was developing,

but the broader economics were so challenging that scaling became difficult.

Now we want to focus our energy on innovations that have strong long-term growth.”

✅ Customers were interested

❌ But generating profit was becoming very difficult

❌ Delivery and logistics costs were high

❌ Orders were not becoming profitable

10-minute or 15-minute food delivery sounds attractive, but in reality:

Delivery rider costs increase

Logistics pressure becomes very high

Profit margins on small orders are very low

Discounts and offers increase losses even more

Because of this, it becomes extremely tough for companies to scale.

Swiggy’s Snacc entered the market when this trend was at its peak.

Competitors were also expanding aggressively:

Blinkit launched “Bistro”

Zepto started “Zepto Cafe”

Smaller players like Swish were also gaining traction

Competition became so intense that profitability became even more difficult.

The reality of this sector can also be understood from Blinkit’s numbers:

According to the Moneycontrol report:

📌 Blinkit Bistro made a loss of ₹150 crore in 9 months

📌 and its sales were less than ₹20 crore

This means the 10-minute food delivery model shows growth, but the struggle for profits is huge.

Swiggy has clearly indicated that now the company will:

✅ focus on long-term sustainable innovation

✅ give priority to profit-driven segments

✅ reduce hyper-fast delivery experiments

Experts believe that in the coming time, companies will:

optimize quick commerce

change pricing and delivery models to improve margins

focus more on “profitable delivery” rather than “fast delivery”

Swiggy shutting down Snacc is a clear signal that:

🚫 the 10-minute food delivery concept is exciting

✅ but making the business model profitable is still difficult

Now the industry focus is shifting from speed to sustainability and profitability.

This news is for information only and is not investment advice. Please do your own research before making investment decisions.