Mumbai-based food ordering company, TinyOwl shut down its operations from May 22 in all 11 cities it was operational in, except Mumbai, reports Times Of India.
This move is, however, only temporary, as the company is looking to re-brand itself and return with a better product. Harshvardhan Mandad, co-founder of the company, speaking to Mint said that they plan to relaunch their app as a full delivery service.
On May 10, Economic Times reported that TinyOwl and logistics player Roadrunnr are merging in order to take on food-delivery players Swiggy and Zomato Order.
Mandad speaking to Times Of India said that the company is hoping to relaunch its services in a few cities in another 15-20 days during which, the integration with Roadrunnr will be completed.
“Just because we could not get the unit economics right in the first attempt does not mean there is no scope in the space,” he said.
An investor in TinyOwl speaking to Mint said that TinyOwl’s strong front end and Roadrunnr’s good back end technology will help procure more users.
Found in August 2014, TinyOwl has been in financial trouble for quite sometime now and has been in the news in the last few months for their lay-offs.
From September 2015 to January 2016, in four months, the company fired 600 employees and 10 heads of departments. By the end of 2015, they had also shut down their call centre in Bengaluru, reports Business Standard.
(Feature image source: Twitter | @livemint)