RoadRunnr, the hyperlocal delivery startup backed by Sequoia Capital and Nexus Venture Partners, may exit from the e-commerce delivery business completely. It might shift its focus on a few select categories such as food, groceries and merchant-to-merchant, or first-mile, deliveries.
A slowdown in funding has prompted Roadrunnr, owned by Carthero Technologies Pvt Ltd, to scale down the plan and consider shutting the e-commerce vertical altogether.
RoadRunnr inability to raise further funds could be a major reason behind RoadRunnr’s decision to shut-down its e-commerce vertical. It has been in talks with multiple investors, including Milner’s DST Global, to raise close to $25-50 million in fresh capital, but has failed to close deal.
The firm has also started cutting costs, especially expenses towards delivery personnel. While restructuring salary and incentives for the delivery fleet led to protests at its office in Bengaluru in November, the firm has also stopped providing the personnel with mobile phones and power banks.
Roadrunnr is also exploring plans to launch bike taxi. The company is yet to decide whether it will launch a consumer-facing platform or forge a partnership with other bike taxi start-ups by giving them access to Roadrunnr’s existing pool of delivery personnel.