How Grofers is coping with lockdown
In the first story of this new series, ET’s Samidha Sharma spoke to Albinder Dhindsa, chief executive officer of Grofers, on what it means to a steer an essential service at such a critical time.
Why it matters: Online grocery retailing is one sector that has witnessed a massive demand surge, leading to capacity constraints and operational bottlenecks.
Challenges & learning: In the interview, Dhindsa talks about challenges—preventing hoarding, managing uptime of systems, scaling supply to accept more orders and resuming deliveries with labour shortage—that his company had to face soon after the lockdown and how the coronavirus outbreak has energised his entire team to do more with less.
One of the biggest revelations, according to Dhindsa, was the pace at which government machinery can actually move. “It has been great to witness an alignment in mission that you usually reserve for private companies.”
The road ahead: The guiding principles have to be—minimise disruption in business, conserve cash and focus on the here and now. “We need to keep our frontline staff healthy and try to reach as many customers as possible. If we can do that and come out of it with a decent balance sheet, it would be great.” Read the full interview
State of online sellers
What’s going on?
While the ongoing shutdown has hurt everyone, online sellers face the worst in some areas than their offline counterparts.
Why is it significant?
Estimates put the number of online vendors in India at close to 500,000 and around 65% of the gross merchandise volume (GMV) of online marketplaces comes from non-essential products such as smartphones, fashion and furniture—all of these come fall in the non-essential category. With shipments stuck in transit due to the ongoing lockdown, many online sellers are expecting a significant hit to earnings.
In Numbers:
- India’s overall e-commerce market was worth $31.5 billion in 2019.
- Smartphones alone are the biggest category with 35% share of the market.
- Smartphones, TVs, large appliances and electronics are 47% of the market.
- 60-70% returns could be expected as customers cancel orders stuck in transit. Read more.
Uber to run cabs for essential services
What’s the news?
Uber India is piloting a new category to ferry people who come under a government-approved essential travel list during the lockdown period, and the service has already gone live in Nashik,
Why is it important?
Uber and rival Ola have temporarily suspended services across cities, complying with government directives to curb the spread of the coronavirus.
The new service, according to the ride-hailing firm, is for people who want to get out of their homes and move about — patients who need to go to the hospital for dialysis, individuals who need to go to somebody else’s house for caregiving, or people who need to get out of their houses to buy essential goods.
Details: Drivers and cars under this service have state-approved passes and are permitted to transport two people at a time. Uber Essentials, for which approvals are being sought from state governments, will be extended to other cities early this week once approved.
Last week, the cab aggregator partnered with the National Health Authority to provide transport for healthcare workers. It customised the cars it supplied to the NHA with roof-to-floor plastic sheeting, enclosing the driver’s seat to act as a protective barrier.
Uber has also partnered with BigBasket and Spencer’s Retail to offer grocery delivery as a service. Read more.
Startups demand liquidity lifeline to stay afloat
What’s the news?
Indian startups have sought interest-free loans or credit linked to income tax and goods and service tax (GST) refunds to meet funding needs in a letter to finance minister Nirmala Sitharaman.
Why is it significant?
Startups are lobbying the government for a lifeline as they cope with an existential liquidity crisis amid a disruption of their ecosystem due to Covid-19 lockdown. Venture capital firms have issued warnings to portfolio companies and the broader ecosystem to conserve cash and tighten spending, given the worsening macroeconomic climate and meltdown of global indices. E-commerce and food delivery unicorn startups have been struggling because of the lockdown.
Demands: India’s startups want public sector banks and state-controlled Small Industries Development Bank of India (Sidbi), the implementing agency of the ₹10,000 crore Fund-of-Funds, to offer loans up to the full extent of the refunds they’re due.
LocalCircles, an online community platform that represents 29,000 startups and small and medium enterprises (SMEs), urged the finance minister to allow companies to invest in startups and avail CSR benefits. Read more.
Cities take to drones to keep services up
What’s the news?
City corporations and police are tapping drone operators to enforce the lockdown, spray disinfectants, identify clusters of people showing signs of sickness and for quick delivery of medicines.
Why it matters: In the time of the Covid-19 outbreak, drones are being viewed as tools to limit human exposure. Companies have repurposed agricultural drones to spray disinfectants and are using micro drones with cameras to help police in surveillance.
Details: Firms such as Garuda Aerospace, Marut Drones and IIO Technologies are actively partnering with state governments and local municipal bodies to cater to the demand. Read more.
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