Swiggy's Snacc and Blue Tokai part ways just months after launch
The tie-up was intended to provide Snacc users with swift deliveries of Blue Tokai's coffee selection. However, insiders suggest that irreconcilable differences regarding pricing models and the assortment of products offered ultimately led to the premature termination of the partnership.
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Swiggy's ambitious 15-minute food delivery app, Snacc, has abruptly ended its partnership with popular specialty coffee roasters, Blue Tokai Coffee Roasters. As per a Moneycontrol report, the collaboration, which was announced with much fanfare in January this year, dissolved due to disagreements on crucial aspects like pricing strategies, menu curation, and overall execution plans.
The tie-up was intended to provide Snacc users with swift deliveries of Blue Tokai's coffee selection. However, insiders suggest that irreconcilable differences regarding pricing models and the assortment of products offered ultimately led to the premature termination of the partnership.
"The two sides couldn’t decide on a common framework for pricing and menu optimisation," a source told Moneycontrol, highlighting the core issues. "While Blue Tokai pushed for certain items on the menu, Swiggy would have wanted to follow a different strategy. The partnership became difficult to scale or sustain after that."
A quick check on the Snacc app now confirms the absence of Blue Tokai's offerings. While Blue Tokai declined to comment on the development, Swiggy has yet to respond to queries from Moneycontrol.
Despite the early promise the rapid delivery model held for Blue Tokai, with co-founder Matt Chitharanjan noting its rapid growth in January, the partnership proved short-lived.
This development comes at a time of increasing competition in the ultrafast delivery sector, with players like Zepto's Café and Blinkit's Bistro gaining significant traction through their own in-house food and beverage offerings. Zepto Café, in particular, has seen rapid scaling, boasting over 100,000 daily orders.
Industry experts suggest that Snacc's split with Blue Tokai could indicate a strategic shift towards emulating its competitors by focusing on proprietary offerings from its dark stores. This approach allows for greater control over margins and consistency.
However, the rise of platform-owned brands has also drawn criticism from restaurant industry bodies, who have raised concerns about anti-competitive practices related to private labeling.
As the 15-minute delivery battle intensifies, Snacc's recalibration signals a potential move towards vertical integration for Swiggy in this rapidly evolving market.
