A month later, Mukesh Bansal and Ankit Nagori resignation India’s largest e-commerce firm Flipkart shuts it’s groceries delivery app, Nearby. The company Nearby was five months old.
Paytm, operated by One97 Communications Ltd, also closed its grocery service in June because of poor demand.
The Nearby app was launched as an experiment by Flipkart in Bengaluru in October. The company promised to deliver fruits, vegetables, soaps and other staples from supermarkets to customers within an hour of receiving an order.
On 11 January, Flipkart named co-founder Binny as CEO, replacing Sachin Bansal, in a move that it claimed would strengthen its management bandwidth as it seeks to combat archrival Amazon India and kick off preparations for an expected initial public offering (IPO) over the next few years.
Flipkart, valued at $15 billion, is engaged in an expensive market share war with Snapdeal and Amazon India, which gained market share last year at the expense of its two Indian rivals.
Even specialist hyperlocal groceries delivery start-ups such as Grofers (Locodel Solutions Pvt. Ltd) and PepperTap (Nuvo Logistics Pvt. Ltd) are struggling to build viable businesses; both recently shrank their operations despite raising roughly $200 million from investors over the past 18 months. (Source)