Swiggy has closed its gourmet grocery delivery vertical, Handpicked, as part of its efforts to streamline its business amid external market pressures. Handpicked, which launched in December 2022, was an invite-only platform that offered premium products, including imported and locally-made goods that were hard to find in Indian stores.
However, the platform failed to find a good product-market fit, leading Swiggy to axe the vertical. Users can still order groceries via Swiggy’s Instamart and InsanelyGood, the rebranded avatar of SuprDaily launched earlier this year in March.
Swiggy has been diversifying its grocery and other traded goods delivery verticals, launching Maxx, a platform that delivers products such as toys, electronics, gadgets, and home and kitchen essentials in under one hour. The company also plans to add categories such as beauty and grooming, essential clothing, gardening, furnishing and decor, and health and fitness soon, taking on the likes of Amazon and Flipkart in the process.
Handpicked’s closure comes at a time when Swiggy is playing catch up to its competitor, Zomato, which has captured a majority of the market share and is enjoying better margins than Swiggy. In FY22, Swiggy earned INR 3,444.4 Cr from the sale of services, which was an increase of 83% from INR 1,878.9 Cr in FY21. Of this, Swiggy earned INR 87.5 Cr by selling food, while it made INR 2,035.6 Cr by selling traded goods through Instamart.
Swiggy’s spokesperson said, “At Swiggy we’re continuously experimenting with new propositions in line with our vision to enable unparalleled convenience to consumers. Handpicked was being piloted in a few zones in Bengaluru and we have had several positive learnings from it.” Swiggy’s decision to close Handpicked shows that the company is willing to make tough decisions to stay competitive in the Indian market.
