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Swiggy, one of India's leading food delivery platforms, has decided to shut down its gourmet grocery delivery service, Handpicked. Launched in 2021 as a premium offering to cater to the growing demand for high-quality and niche products, Handpicked provided users access to a curated selection of gourmet groceries. The decision to discontinue the service comes as Swiggy shifts its focus to consolidate its core food delivery business and enhance its hyperlocal quick commerce platform, Instamart.
When @Swiggy Handpicked was launched, a lot of our friends and customers messaged that it looked eerily similar to PING, our startup.
— Vartika Bansal (@bansalvartika) April 28, 2023
Today, many of them sent the below message.
Some business models do not scale, no matter the who and the how. pic.twitter.com/vSWa03et2B
Handpicked, initially available only in Bengaluru and later expanded to other cities, it offered customers a diverse range of products, including gourmet cheese, organic produce, exotic fruits, and artisanal bread. The service aimed to cater to the evolving preferences of urban consumers who sought unique and premium products that were not readily available in local supermarkets. However, as Swiggy intensifies its efforts to strengthen its primary food delivery business and grow Instamart, it has decided to cease operations for Handpicked.
A Swiggy spokesperson confirmed the development:
"As we sharpen our focus on scaling Instamart to cater to the massive consumer demand for instant grocery delivery, we have decided to discontinue the Handpicked pilot."
The spokesperson further added that the learnings from Handpicked would be integrated into Instamart to enhance its product offerings and deliver an improved user experience.
Instamart, Swiggy's hyperlocal delivery platform, has witnessed exponential growth since its inception in 2020. The platform offers users swift delivery of groceries and daily essentials within 30-45 minutes. Instamart has rapidly gained traction among consumers owing to its convenience, speed, and extensive range of products. The platform currently operates in several Indian cities, including Bengaluru, Mumbai, Delhi, Chennai, and Kolkata, with plans to expand its footprint further.
Swiggy's decision to shutter Handpicked and focus on Instamart highlights the growing importance of quick commerce in India's retail landscape. As consumers increasingly prioritize convenience and speed, on-demand delivery platforms like Instamart have become the preferred choice for everyday essentials and groceries. This trend has prompted several startups and established players to enter the quick commerce space, intensifying market competition.
The discontinuation of Handpicked also reflects Swiggy's strategic shift towards optimizing its resources and focusing on high-growth areas. By consolidating its efforts on core food delivery and Instamart, Swiggy aims to leverage its robust delivery infrastructure and capitalize on the booming demand for online food and grocery services in India. The company's recent fundraising activities, which saw it raise over $700 million in a Series K round led by Invesco, further bolster its plans to dominate the quick commerce space.
In conclusion, Swiggy's decision to discontinue Handpicked underscores its commitment to strengthening its primary food delivery business and expanding its Instamart platform. As the demand for quick commerce continues to surge in India, Swiggy's strategic move to focus on high-growth areas positions it well to capitalize on evolving consumer preferences and maintain its leadership in the rapidly growing online food and grocery delivery market.
