TinyOwl, the online food ordering platform has temporarily discontinued its services in all cities except Mumbai from, according to the official blog of the company.
Earlier, TinyOwl was operational in cities like Delhi-NCR, Bangalore, Mumbai, Navi Mumbai, Hyderabad, Chennai, Ahmedabad, Jaipur, Nagpur, Lucknow and Chandigarh.
The Mumbai-based startup said the service will now be operational in select localities in Mumbai including Churchgate, Colaba, Lower Parel, Mahim, Marine lines, Matunga East, Mumbai Central, Worli and Nariman Point among others.
TinyOwl however noted that it is retaining the user data to help them order after the company restarts its services in the future. “We are committed to return with an even better product for you in the near future” the blog mentions.
TinyOwl is among several food delivery startups in India that have recently run into operational troubles despite support from marquee investors. Issues include the high cost of logistics and a over-saturated market.
Like Zomato and Foodpanda, two of its biggest rivals, TinyOwl was forced to hold mass lay offs last year. In TinyOwl’s case, the firings reportedly led to one of its founders, Gaurav Choudhary, being detained for two days by laid-off employees over post-dated checks.
In 2014, TinyOwl was founded by IIT Bombay graduates Mandad, Gaurav Choudhary, Saurabh Goyal, Shikhar Paliwal and Tanuj Khandelwal. It raised Rs 50 crore from its existing investors – Sequoia Capital, Nexus Venture Partners and Matrix Partners – in October.