SINGAPORE: Food delivery start-up Plum will cease operations in Singapore from Jan 21, it said in an email to customers on Saturday (Jan 19).
Plum has been in business here for less than a year, having launched in Singapore in March 2018.
“It is with great sorrow to announce that we are ceasing our operations in Singapore from 21st January,” the company said in its email. “Plum would like to thank you for your past support and going on this wonderful journey with us. We would not have achieved what we had without you. Best wishes to the year ahead.”
Unlike the typical food delivery service, the Hong Kong-based start-up delivers to specific pick-up points at a fixed time during lunch from Monday to Friday. There is no delivery fee. The menu is curated and changes daily.
Designed for the office crowd, pick-up points include locations in the Marina Bay area, Tanjong Pagar and one-north.
Last November, Plum laid off its entire staff in Hong Kong, as reported by the South China Morning Post. Co-founder of Plum Desmond Clinton Cheung told the news portal that the company wanted to “right-size” operations and embark on a more sustainable business model.
Customers in Singapore said Plum was still sending Chinese New Year promotions via its app this week.
App user Koh Kim Joo questioned the short notice given to customers.
"It seems like they picked the timing to release the notice on a weekend to avoid the influx of customer complaints," he told Channel NewsAsia.
The 32-year-old, who uses the app at least once a week, said he has S$30 worth of unused Plum vouchers which he bought in November, adding that he had been planning to use them before they expire on Feb 28.
"It's not ethical for companies to do this, and I certainly feel that I have been cheated as there was a false sense that they were still operational," he said.
Channel NewsAsia has reached out to Plum Singapore for more information.
Its decision to end operations here comes amid stiff competition in the food delivery market. Hawker food delivery service Fastbee ended operations last August on the back of difficulties in attracting fresh funding.