Online retailers tap common resources
What’s the news?
E-commerce, logistics and ride-hailing firms are putting in place several measures to ramp up capacity to deliver essentials to customers. These include procuring permissions to stock food at their warehouses, use railway freight to move goods and cabs to enable last-mile deliveries.
Why does this matter?
For e-grocers and e-commerce companies including Amazon and Flipkart, hiring on-ground staff has been the biggest challenge after migrant workers fled to their native places from various states due to the ongoing lockdown. Last week, ET had reported about a 80-90% labour shortage that e-commerce firms are facing as workers returned to their hometowns or are unable to show up at work due to transport scarcity and police harassment. Read more.
India’s vertical e-commerce cos feel the squeeze
What’s the news?
Vertical online goods and services companies, including Urban Company, BookMyShow, Pepperfry and Nykaa, which do not feature in the government’s list of notified essential services, have been hit hard by the Covid pandemic, with businesses plummeting to near zero in some cases.
Why is it important?
This will create cash flow issues for such online platforms, affecting their business partners. It comes at a time when India’s leading online marketplaces Amazon and Flipkart have also seen a steep decline in sales, having shuttered their flagship categories, such as smartphones, electronics, and large appliances, which contribute more than 70% of sales. They are now largely attempting to meet the essential needs of customers. Read more.
Zoom app usage explodes in India
What’s the news?
Zoom has seen a huge increase in downloads in India since quarantines and lockdowns were imposed to control the spread of the Covid-19 pandemic in the country.
Why is it relevant?
On Monday, Zoom surged to become the No. 1 app in India on Google Playstore as the 9-year-old platform has emerged as the go-to service for official meetings and informal gatherings. According to Apptopia, which monitors app downloads, the daily downloads for Zoom have increased from around 1,70,000 in the middle of February to nearly 2.5 million in late March. The app is not only being used by millions for work but also social gatherings, yoga classes, book clubs, and entertainment concerts. Read more.
Club Factory begins recruiting Indian e-commerce vendors
What’s the news?
Chinese e-tailer Club Factory has begun recruiting Indian e-commerce vendors to import essential goods such as masks, hand sanitizers and other protective medical gear from its home country.
Why is it significant?
Club Factory looks to seize the large economic opportunity created by a shortage of such products in India. The company, however, has been hauled up in the past for flouting norms, with the customs department in Mumbai seizing hundreds of packages of the company last year. It was found to be bringing goods into the country declaring them as business-to-business transactions when in fact the contents of those packages were individual orders placed by customers in India, which attract 42.08% duty. Read more.
Big boost for telemedicine
What’s the news?
The government’s recent notification regulating telemedicine amid the Covid-19 pandemic has given a boost to the business of healthtech startups operating in the segment.
Why is it significant?
Practo, mfine and 1mg expect more hospitals and doctors to line up to teleconsult on the platforms, as it is no longer considered a regulatory grey area. Portea Medical, which provides home healthcare support through nurses and doctors, also plans to scale its teleconsulting business. The Covid-19 pandemic and the ensuing lockdown have already led to rising demand for their services. Read more.
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