Swiggy has shut down its hyperlocal delivery service, Genie, across multiple cities, marking the end of a vertical that failed to deliver the desired returns, sources said. Launched in 2020, Genie allowed users to send parcels and arrange shop pick-ups within the same city. At its peak, the service operated in around 60 cities, but struggled to scale or generate meaningful revenue, sources added.
While Swiggy described the move as a temporary suspension in its response to customer queries on social media, sources familiar with the matter confirmed to FE that the shutdown is permanent. “They want to focus more on quick commerce and food delivery,” sources said. “Genie was not contributing significantly to Swiggy’s revenues anyway,” sources added.
The closure comes as Swiggy doubles down on its quick commerce platform, Instamart, and its express food delivery platform, Bolt. Bolt is now active in over 500 cities and contributes to 10% of Swiggy’s total food orders. According to industry analysts, Swiggy is likely reallocating resources to segments with stronger unit economics. “Quick food delivery offers better margins, so the decision to prioritise it over a low-performing service like Genie is understandable,” an analyst noted.
The hyperlocal delivery segment has proven challenging for many players, with several struggling to scale. Swiggy had earlier paused Genie operations temporarily in 2022 in Mumbai, Bengaluru and Hyderabad, citing a surge in demand for food delivery and Instamart. This latest move appears to be a more decisive step in phasing out the underperforming service, sources said.
The competition in the hyperlocal delivery space has intensified. Uber has made a significant push into the segment, offering not just parcel delivery on two-wheelers but also logistics via three- and four-wheelers. Companies like Rapido and Porter are also aggressively expanding their presence, particularly after the decline of Dunzo, once a frontrunner in this domain.
Swiggy, meanwhile, is exploring newer verticals. The company recently launched Pyng, a professional services platform currently live in Bengaluru, which connects users to professionals such as fitness trainers, tarot card readers, and event planners.