On-demand groceries app PepperTap to shut shop by month-end

On demand groceries app is going to shut down its operations by the end of the month, YourStory.com has reported.

The start-up stories portal said that PepperTap CEO Navneet Singh had confirmed the news over a phone call.

Singh has been quoted as saying that after shutting down PepperTap operations, the company will be working towards building an e-commerce logistics company. 

Singh said that shutting down the groceries delivery app business was the "need of the hour". 

"Our foray into full stack logistics space is a well-pondered decision and our experience in consumer as well as business-focused logistics will certainly help us to build next generation e-commerce logistics startup," he told YourStory.

This brings back into focus the sustainability of grocery delivery apps in India. Several hyperlocal grocery apps sprung up in the country in the last two years, with most quickly expanding into tier II and tier III cities too. 

However, many have then been forced to pull out of these cities mostly on the back of a lack in demand and unviable economies of scale. These include Localbanya, Grofers, Paytm and Flipkart's grocery delivery arms.