On-demand hyperlocal delivery app PepperTap has recently confirmed the rumors of shutting operations. The company will shut its grocery delivery operations within one month and is planning to diversify into a logistics solution provider to compete with starups like eKart, Delhivery and DHL etc.
Currently the company owns a reverse logistics arm through its parent company Nuvoex Logistics Pvt. Ltd. and looking forward has an aggressive plan to build logistics technology to compete with the majors of this vertical.
The move comes ahead with PepperTap’s immediate rivals such as Grofers and Bigbasket raising substantial funds and the moaning pressure to stay ahead in the competition.
In February, PepperTap had shut operations in six cities - Ahmedabad, Chandigarh, Mumbai, Kolkata, Chennai and Jaipur.
Last year the company ceased operations in Agra and Meerut after a month-long pilot failed to take off. Nuvo Logistics Pvt Ltd owned PepperTap started as a reverse logistics company and its largest customers are ecommerce companies and the division competes with other logistics firms like Delhivery, Ecom Express, Parcelled and others.
The Sequoia Capital backed company has raised more than $50 million till date in funding. It is also backed by online marketplace Snapdeal as well as venture firms SAIF Partners, Ru Net and Innoven Capital.