India’s largest e-commerce firm Flipkart plans to scrap its grocery delivery app just five months after its launch. As per the local newspaper reports the company’s decision to shut down the app comes after a combination of poor customer demand and lack of margins. Indian newspaper Livemint reported quoting two sources close to the company on condition of anonymity that Flipkart does not want to continue with the grocery app that it started testing just five months back.
The grocery app, Nearby was launched as an experiment by Flipkart in Bengaluru in October 2015. Apart from grocery and food items fruits, vegetables, soaps and other staples, Flipkart promised to deliver personal care products, health and wellness products like condoms, sanitary napkins, household supplies and baby care products through the app.
A spokesperson for Flipkart was quoted by Livemint as saying that the company has decided to shut the app. However the spokesperson refused to delve into the details. Poor customer demand and a lack of margins are accounted for the decision. Flipkart’s newly appointed chief executive Binny Bansal has recently announced that his priority will be cutting costs and sharpening the company’s focus on its key strengths: electronics and fashion sales and logistics.