Coca-Cola & Domino's-backed Foodtech Startup Thrive Shuts Operations

In recent news, Mumbai-based food delivery startup Thrive has announced the shutdown of its consumer app after four years of operation. This decision comes amid fierce competition in the food tech sector, dominated by industry giants Zomato and Swiggy.

Despite its efforts to create a more equitable approach to food delivery and discovery, Thrive's cofounder and CEO Krishi Fagwani said it was a “difficult decision” and cited a lack of resources as the main reason for shutting down operations.

The Rise And Fall of Thrive

Founded in 2020 by Fagwani, Dhruv Dewan, and Karan Chechani, to date, Thrive has partnered with more than 14,000 restaurants in 80 cities and tried competing with Swiggy and Zomato. 

Thrive was on a mission to revolutionize the food delivery industry by offering lower commissions, fairer pricing, social-led discovery, and a human-centered connection between restaurants and their customers.

However, the market dominance of a few well-funded giants proved to be an insurmountable challenge for the startup. Even with significant backing from major corporations like Jubilant Foodworks and Coca-Cola, Thrive struggled to stay afloat in the competitive landscape.

Reflecting on the learnings from this experience, Fagwani acknowledged the difficulty faced by smaller platforms in competing with industry giants.

The CEO claimed the platform charged only a 3% commission, compared to Zomato and Swiggy’s 18-25% commission.

Despite their best efforts, Thrive's financial performance continued to worsen, with net losses widening significantly in the past year.

The decision to close the consumer app is a strategic move towards taking it to a new phase of partnerships and operational shifts for the company.

Read Krishi Fagwani's LinkedIn post here

Facing the Giants

As Zomato and Swiggy strengthened their positions in the market, especially after the pandemic-induced changes in consumer behavior, smaller players like Thrive found it increasingly challenging to survive.

The rapid expansion of the market leaders into quick commerce and strategic acquisitions further marginalized smaller platforms trying to make a mark in the industry.

CEO Fagwani assured stakeholders that payments, tax compliance, reporting, and invoicing will be dealt with seamlessly during the transition. 

Also, he expressed gratitude by saying, "We are proud of what we have built together and thank our restaurant partners, customers, investors and team for believing in our mission."

Also read: Bombay Shaving Company CEO Raises Health Alarm on India’s Rising Trend of Quick Commerce Foods (startuppedia.in)