Swiggy’s Snacc, Blue Tokai end its ties over pricing, strategy mismatch

In less than three months of its announcement, Swiggy’s 15-minute food delivery app Snacc has ended its partnership with Blue Tokai Coffee Roasters. The tie-up, which helped Snacc gain initial traction by getting the ball rolling for its 15-minute food delivery play, was called off after both companies failed to align on key aspects such as pricing, menu strategy, and broader execution goals. The partnership allowed the app’s users to order from a curated range of Blue Tokai’s specialty coffee offerings.

The partnership was announced in January this year – days after Snacc’s launch.

However, sources said that differences over the pricing model and the product mix ultimately proved to be sticking points and resulted in the Swiggy Blue Tokai fallout.

“The two sides couldn’t decide on a common framework for pricing and menu optimisation. While Blue Tokai pushed for certain items on the menu, Swiggy would have wanted to follow a different strategy. The partnership became difficult to scale or sustain after that,” one of the sources said.

In an interview with Moneycontrol in January, co-founder and CEO of Blue Tokai Matt Chitharanjan noted that while offline stores continued to contribute the bulk of revenues, rapid-delivery channels like Snacc were growing even faster than its e-commerce vertical.

“Right now, we are at 30 locations with them (Snacc). It is a bit early for us to say how it is going to play out. (But) we see it as very complementary to the deliveries from our own cafes,” he had said, adding that Snacc catered to an instant consumption need—a different use case from its wider café and aggregator menus.