PepperTap isn’t the only grocery delivery startup that shut down. Many startups like LocalBanya and Townrush shut down due to drying out of funds and inability to raise further rounds of investment. Even Ola Cafe, Flipkart’s grocery delivery service also shut down because of unsustainable business models.
Imp – There is no update regarding users who was having PepperCash left in their account. The Last date to consume it is 30th April as stated by PepperTap few days back but now they have closed their service before the deadline also.
- Firstly, The integration of PepperTap app with their partner stores was not great. Customers were, at times, unable to see the entire selection of items from a store and sometimes even essential items were missing from the catalogue visible to them. This was one of the downfall reason of peppertap.
- Secondly, PepperTap to keep enticing customers to buy from their platform, They were spending a lot of time and energy to devise clever sales and discount schemes. Offering almost each & every product available at cheaper prices than market at lowest commission. This was the cash-burning task being performed by them in these few years.
- Thirdly, They were going to stick to their 2 hour delivery promise (which was rapidly becoming a key differentiator in the markets for us), they were needed to build spare capacity in every one of the 17 cities in which we were present. Compounded with the necessity for discounts, this meant that the cash we were burning on every single order was increasing rather quickly with no immediate end in sight.
Interview with Navneet Singh, PepperTap CEO :-