Mumbai-Based Thrive Shuts Consumer App as Zomato, Swiggy Tighten Grip

Mumbai-based food delivery startup Thrive has decided to shut down its consumer app following four years of existence in the market. Company co-founder Krishi Phagwani announced the closure through his LinkedIn post. He highlighted the harsh realities of competing with giants like Zomato and Swiggy. Thrive was equipped with innovative approach and notable backing from Jubilant Foodworks, Coca-Cola and more such big names, but found it increasingly difficult to scale against well-funded rivals.

The announcement of shutting down food tech operation by Thrive was not surprising as it has been witnessed that Zomato and Swiggy have left little room for smaller players due to their deep pockets and constant innovation. The COVID-19 pandemic accelerated the growth of both the companies and they expanded into new areas such as quick commerce and strategic acquisitions.

Thrive received strong backing from big names like Jubilant Foodworks, the parent company of Domino’s, which acquired a 35% stake in 2021. Coca-Cola also invested, taking a 15% stake in 2023. Despite this support, Thrive couldn’t keep up with the aggressive strategies of its larger competitors. Its revenue saw a slight increase from ₹2.3 crore in FY22 to ₹2.5 crore in FY23, but net losses more than doubled, rising from ₹2.8 crore to ₹7.4 crore.

The closure statement of Phagwani reflects challenges of being a smaller player in a market that is dominated by giants. However, he added that Thrive would now focus on other areas such as Thrive ONDC and Thrive Marketing Suite. These will be handed over to suitable partners for continued operation.

The shutting down decision marks an end direct consumer relationship and highlights the struggle of smaller startups.