PepperTap – an on-demand grocery app that brought along the power and convenience of ordering groceries and fruits & vegetables in your hands has been in trouble for quite some time now. We heard the news about closure of its grocery business a few days back. While the company was still recovering from the brunt of that, there is news that 150 employees from the company have been laid off.
Snapdeal-backed PepperTap has decided to shut down its cash-burning grocery delivery operations and instead focus on expanding its logistics business. The grocery delivery services were available in Delhi NCR, Bangalore, Pune and Hyderabad.
While speaking about the latest reshuffles in the organisation PepperTap CEO Navneet Singh said,
“We couldn’t shake off the feeling that we were walking (not racing like some other companies) towards the edge of a cliff hoping that things will get better before we reach the abyss…”
As per him the company was merely losing cash with every delivery and thus the step was taken to save the capital raised from the investors.
As a result of the shut down around 150 employees from the company will be left jobless. Speaking about this scenario, Navneet Singh said,
“We have about 200 people. While about 50 are being absorbed in the logistics business, we will have to let go of the others. We are offering compensation packages with upto three months of salary depending on the seniority and tenure of the employee,”
Well the employees will surely be disappointed at this move of the company. This is a big alarm for the hyperlocal delivery startups who have been working on a wafer thin profit margin for a very long time now.