Swiggy has permanently discontinued its hyperlocal delivery service Genie across cities, signaling a clear shift in strategy as the company doubles down on more profitable verticals such as quick commerce (Instamart), express food delivery (Bolt), and its newly launched professional services platform Pyng.
Initially launched in 2020 as a same-city parcel and pick-up service, Genie once operated in over 60 Indian cities. However, it failed to generate significant revenue or scale meaningfully, insiders told Financial Express. While Swiggy has responded to customer concerns by framing the move as a “temporary suspension,” company sources have confirmed that the shutdown is permanent.
“They want to focus more on quick commerce and food delivery,” a source familiar with the decision said. “Genie was not contributing significantly to Swiggy’s revenues anyway.”
Focus Shifts to High-Margin Segments
This strategic exit comes as Swiggy ramps up investments in its high-margin platforms. Instamart, the company’s quick commerce vertical, and Bolt, its 10-minute food delivery arm, are now core pillars of its growth strategy. Bolt currently operates in over 500 cities and accounts for nearly 10% of Swiggy’s total food orders, according to internal estimates.
Analysts view the move as part of a larger industry trend. “Quick food delivery and convenience grocery offer better margins and higher order frequency than hyperlocal errands,” said a senior retail analyst. “Swiggy’s exit from Genie aligns with its broader goal to focus on scalable, unit-economics-positive businesses.”
Hyperlocal Delivery: A Tough Nut to Crack
Genie’s demise underscores the broader struggles of the hyperlocal delivery segment in India. The space has seen the decline of players like Dunzo, while rivals such as Porter, Uber, and Rapido are now consolidating their grip with multi-modal logistics offerings.
Swiggy had previously paused Genie operations in Mumbai, Bengaluru, and Hyderabad in 2022, citing operational constraints during peak demand periods for Instamart and food delivery. However, this latest development marks a final retreat from the segment.
New Bets: Enter Pyng
Swiggy’s recent launch of Pyng in Bengaluru indicates its next strategic direction — tapping into India’s growing services economy. The new platform connects users to professionals such as personal trainers, tarot readers, and event planners, reflecting Swiggy’s ambitions beyond food and groceries.
With Genie’s exit, Swiggy appears to be realigning its focus toward platforms with stronger customer stickiness, operational efficiency, and revenue potential.