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.

By  Storyboard18Apr 23, 2025 10:44 AM
Swiggy's Snacc and Blue Tokai part ways just months after launch
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.

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.

First Published on Apr 23, 2025 10:41 AM

More from Storyboard18

Brand Marketing

Reliance Retail Ventures posts 11.3% rise in revenue to Rs 84,171 crore in Q1 FY26

Reliance Retail Ventures posts 11.3% rise in revenue to Rs 84,171 crore in Q1 FY26

Brand Marketing

Perplexity AI overtakes ChatGPT on App Store after Airtel deal sparks download surge

Perplexity AI overtakes ChatGPT on App Store after Airtel deal sparks download surge

Brand Marketing

No dyes, no flavors: PepsiCo goes all-in on 'real food' for snack rebrand

No dyes, no flavors: PepsiCo goes all-in on 'real food' for snack rebrand

Brand Makers

Larry Ellison, world's second richest man, launches global tech institute with Oxford

Larry Ellison, world's second richest man, launches global tech institute with Oxford

Brand Marketing

Airtel-Perplexity AI tie-up sparks online chatter over Apple, ads, and AI adoption

Airtel-Perplexity AI tie-up sparks online chatter over Apple, ads, and AI adoption

Brand Marketing

OpenAI launches general purpose "ChatGPT Agent" for automated task completion

OpenAI launches general purpose "ChatGPT Agent" for automated task completion

How it Works

YouTube Premium's muffled pitch: Why a "sound strategy" isn't converting in India

YouTube Premium's muffled pitch: Why a "sound strategy" isn't converting in India

Brand Makers

PepsiCo sees strong Q2 growth in India; Snacks, beverages drive international surge

PepsiCo sees strong Q2 growth in India; Snacks, beverages drive international surge