Swiggyhas shut down operations of its cloud kitchen ‘The Bowl Company’ in Delhi-NCR amid a global market downturn which has led many start-ups to cut costs and focus on profitability.

“The expansion of The Bowl Company in Delhi/ NCR was an experiment we ran to bring new food experiences to users. This experiment has led to its due learnings, even as we focus on operational excellence for the brand. We will continue to invest and grow The Bowl Company in cities like Bangalore, Chennai, and Hyderabad where the brand is well-loved and growing,” said a Swiggy spokesperson.

In addition to The Bowl Company, Swiggy’s other cloud kitchen brands are Breakfast Express and Homely. In 2020, Swiggy had scaled down its cloud kitchen footprint in response to Covid-19 lockdowns. At that time, Swiggy Co-founder and CEO Sriharsha Majety said: “Since the onset of Covid, we have already begun the process of scaling down our kitchen facilities temporarily or permanently, depending on their outlook and profitability profile.”

Earlier this month, Swiggy’s investor Prosus said the Bengaluru-based company has seen its food delivery GMV (gross merchandise value) grow by 40 per cent to $1.3 billion in the six months period ended September 30, 2022. Prosus’ quick commerce GMV also increased 15x to $257 million.

Strike in Kochi

Swiggy’s delivery partners in Kochi have been on a strike for almost two weeks demanding better pay. This has impacted the company’s operations in the city.

“On an average, the weekly payout of our active delivery partners in the city has increased close to 20 per cent in the last 12 months and remains industry best. We are currently speaking to delivery partners to help them understand their payouts better and encourage them to return to work. We regret the inconvenience to our users and hope to resume services soon,” said Swiggy in a statement.