Grocery tech companies have imposed restrictions on the number of orders to battle the increase in demand
With the Indian government urging people to stay indoors due to the rise in the number of cases of coronavirus across various cities, consumers have turned towards online grocery platforms to stock the essentials. E-grocery platform Grofers witnessed a 100% growth in daily gross merchandise volume (GMV) compared to last month, Albinder Dhindsa, co-founder and CEO, Grofers said. “There has been a 65% growth in orders and 20% growth in order value,” Dhindsa told BrandWagon Online. Bengaluru, Gurugram, Mumbai, New Delhi and Pune, are some of the cities which have seen a big uptake in demand.
Unilever Ventures-backed Milkbasket is yet another startup to claim that the platform has recorded a 60% – 80% increase in sales. “Prior to the scare, gross revenue varied to approximately Rs 1 crore each day, however, there has been an upsurge in demand in the last five to six days. On certain days we have clocked 100% growth in gross revenue and even more,” Anant Goel, co-founder and CEO, Milkbasket said. Furthermore, BigBasket too claims to have witnessed two times growth in traffic as well as gross revenue. As per the e-grocery firm, the value of a basket has increased 15% – 20% on the back of rise in demand for staples, atta and dal, fruits and vegetables.
Panic and fear of scarcity of goods in the near future are said to be one of the key reasons behind the huge surge in demand, followed by social distancing. “People are rushing to the extent of even hoarding the essentials,” Anshoo Sharma, co-founder and CEO, magicpin – an offline discovery and rewards platform, said. Interestingly, this has also benefitted kirana stores. Demand for groceries has seen a 10% growth at small retail outlets, reveals the data from magicpin.
Incidentally, the increase in demand has forced grocery-tech players to rejig its delivery model. “We have restricted the numbers of essentials that can be ordered by a single household and will bring it down further to ensure more accessibility,” Goel explained. Moreover, the disruption has had an adverse impact on the supply chain thereby resulting in delays. “Cost is under pressure due to the current demand. We are trying to secure goods at competitive prices to sell products at the best possible price,” Dhindsa said. Milkbasket, which shut its facilities earlier compared to regular timing owing to the increased demand, is looking to increase its existing capabilities. “We are hiring more people, commissioning additional transportation and increasing our supply chain capabilities to cater to the growing demand,” Goel noted.
As of now 206, confirmed cases of coronavirus have been reported across the country.