
KOLLAM: Supplyco has discontinued its Supply Kerala delivery service introduced to offer doorstep delivery of essential goods. The service was phased out due to limited customer engagement with the app for online purchases.
Launched by the civil supplies department, the Android app aimed to ensure fast delivery of essentials, particularly in rural areas. However, it garnered just three orders and fewer than 500 downloads over the past three years. Via the app, customers could place orders by selecting their nearest Supplyco outlet.
The distribution network of over 500 Supplyco supermarkets across the state was expected to create job opportunities for more than 10,000 youth.
Additionally, the app provided information on newly launched products. Despite these features, the app was removed from the Play Store after failing to gain traction among users.
“In the past three years, we have received only three orders through the app. After the first six months, we didn’t receive a single order. Initially, we thought cities like Thiruvananthapuram and Kochi might see success, but there was no significant uptake there either. The main issue was that we charged extra for delivery, while several other delivery apps offered free delivery. In a market where private delivery services are more effective, we couldn’t compete,” a source with Supplyco told TNIE.
Launched in 2021, the app made home delivery available within a 10km radius of Supplyco outlets in both rural and urban areas. Delivery charges were based on weight and distance. For example, an order weighing 5kg to be delivered within 4km incurred a charge of Rs 35 plus GST.
Special offers were available for orders over Rs 1,000. Another source with the civil supplies department revealed that the app was never actively promoted by the outlet managers at Supplyco supermarkets.
“The Rs 35-charge was a huge deterrent. Due to this fee, many officials at the outlet would directly engage with customers, offering home delivery without any charge. As a result, managers at several Supplyco supermarket outlets chose not to promote the app,” the source explained.
Food and Civil Supplies Minister G R Anil acknowledged that the app’s failure stemmed from a lack of market research.
“The issue was that the supply company mainly serves middle-income consumers seeking subsidised goods, and these customers generally do not use delivery apps for such purchases. This hindered the app’s success in urban areas. In towns, better delivery apps are available, and people don’t order subsidised goods through them. In rural regions, people preferred to buy directly from Supplyco stores. The entire initiative had flaws which led to its rollback,” Anil said.