Food delivery startup TinyOwl shuts down temporarily in all cities except Mumbai
Mumbai-based food ordering app TinyOwl has temporarily withdrawn its services in all cities except Mumbai, since yesterday.
The company, which has a presence in Ahmedabad, Delhi-NCR, Chennai, Jaipur, Nagpur, Bangalore, Lucknow, Navi Mumbai, Chandigarh, Hyderabad and Mumbai informed its users through a ‘service update’ reports Medianama.
The app currently shows a message below each restaurant listing in Bengaluru that states “temporarily closed for service improvement”.
“This move is part of the rebranding exercise as we are looking to relaunch the app as a full delivery service,” said Harshvardhan Mandad, co-founder of the company, in a phone interview. As part of the branding, the new entity will have a new logo, with new colour schemes representing its delivery function.
The Mumbai-based startup said the service will now be operational in select localities in Mumbai including Churchgate, Colaba, Lower Parel, Mahim, Marine lines, Matunga East, Mumbai Central, Worli and Nariman Point among others.
TinyOwl however noted that it is retaining the user data to help them order after the company restarts its services in the future. “We are committed to return with an even better product for you in the near future” it said.
It was earlier reported that TinyOwl is merging its operations with RoadRunnr and will launch Runner.
“By the end of the year we plan to launch in a few localities of Pune and Delhi depending upon market size,” added Mandad.
The company intends to convey to existing users that the new brand will be a full-fledged delivery company.The new brand will be launched in the next one month.
The new brand aims to generate cash through two streams. First, the delivery business, for which it will charge restaurants Rs.45-60 per order. Second, it will charge a 10-20% commission fee for lead generation.
The new entity will focus only on food delivery at the start. Roadrunnr is also looking to exit its delivery services for e-commerce companies and focus on a few select categories such as food, groceries and merchant-to-merchant, or first-mile, connectivity.
Currently, Tinyowl has on board 100 employees and all of them will be retained as part of the deal. “The technology, userbase and the backend of the app will remain the same,” said Mandad.