PepperTap which is backed by Snapdeal, has decided to shut down its cash-burning grocery delivery operations and instead will be focusing on the expansion of its logistics business.

PepperTap CEO, Navneet Singh, citing issues like high customer acquisition costs and poor app integration with partner stores, said that the company was “losing cash on every order” and has decided to “preserve a large amount of the investor capital” than “be at the bottom of the abyss”.

“We couldn’t shake off the feeling that we were walking (not racing like some other companies) towards the edge of a cliff hoping that things will get better before we reach the abyss…” “The unique challenges of this business are not solvable in the short term and certainly not solvable without massive injections of capital. We would have to confront this issue sooner or later,” he said.

The decision of closing down the operations will result in about 150 job losses.

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