Impact of COVID-19 on Delivery Businesses

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Impact of COVID-19 on Delivery Businesses
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(No Transcript)
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The ongoing COVID-19 pandemic has caused
worldwide distress, with cases piling up
everyday, and businesses getting disrupted.
However, the world is finding its feet albeit a
little slowly. During the initial stages of the
virus, people were scrambling with little to no
idea about what to do. There was a massive rush
with hoarding of essential items, etc. Businesses
everywhere had come to a virtual standstill. The
images of abandoned cars and planes, unused
shopping carts etc, still haunt us today. During
this period of seeming inactivity, one industry
managed to show growth. It was the delivery
business. With people unwilling to go outside
their homes, everything started to get delivered.
It began slowly with essential items like
medicines and groceries, and today has even moved
on to liquor. Here is how the COVID 19 situation
has impacted delivery businesses.
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Grocery Delivery
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Grocery Delivery
Groceries were the first item that naturally
people wanted as soon as they found themselves
cut off from the outside world. In India, firms
like BigBasket and Grofers were already doing
business. As the pandemic wore on, food delivery
applications like Swiggy also started grocery
delivery options. Indias online grocery retail
market is set to touch 10.5 billion by 2023,
rising in percentage from 0.2 to 1.2 of the
food market of the country (source). The
constantly rising number of internet and
smartphone users, coupled with the ease of
purchase, high quality and quick delivery of
groceries online, has led to a surge in online
grocery shopping which witnessed a boost during
the COVID-19 situation. The market has grown
during the pandemic so much, that major players
like Amazon have started aggressively expanding
their Amazon Pantry services in India, offering
discounts to consumers and even a pay-per-month
subscription method to buy groceries. With the
lockdown restrictions slowly getting lifted,
people are venturing outside to buy vegetables
again, but there are many who would prefer
ordering online just because of the convenience.
As COVID-19 became more widespread, it was the
grocery delivery model that took off first,
setting the trend for other delivery businesses
to follow.\
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Food Delivery Services
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Food Delivery Services
The food delivery business was already thriving
before the pandemic hit, but suffered during the
initial stages when total lockdown was imposed.
However, the various governments worldwide slowly
reviewed and relaxed restrictions, and food
delivery was allowed, given that food is an
essential item. However, the industry did face a
lot of initial losses. Swiggy in India, was
forced to lay off around 1000 employees, while
closest rival Zomato let go of a number of people
(source). Things slowly started to turn around as
the rules were dropped a little. Then all of a
sudden, there was a surge in orders as people
just started relying on outside food. Zomato
started recovering economically and even acquired
a rival firm UberEats (source). People have been
ordering online for a considerable period, and
with the lockdown forcing them to stay indoors,
their frequency of ordering has only increased.
(source).
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Parcel Delivery Services
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Parcel Delivery Services
This is an avenue that opened up a lot when the
lockdown was imposed. People had to send items to
one another. Hence applications like Dunzo have
seen an increased number of downloads. Parcel
delivery services have also been started by other
applications most notably Swiggy, which will
bring you anything from a set of keys to a pile
of books. Parcel delivery companies place certain
restrictions on the weight and the kind of parcel
that you are allowed to send, because the
carriers usually use bikes. Hence, the scope is
limited in the sense that you can only send small
packages. Yet, this business has grown due to its
incredible usefulness to the general public
during COVID-19.
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Liquor Delivery Services
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Liquor Delivery Services
In India, when the lockdown restrictions were
lifted, and liquor retail shops reopened, there
were reported lines outside stores of people
waiting to pick up their favourite tipple.
Picking up on this demand, liquor delivery
services began in full earnest. Cashing on the
COVID-19 lockdown, Swiggy was one of the earliest
players to start online liquor delivery. You need
to verify your age and identity and then order
whatever you wish. Amazon is to enter the segment
soon, while Spencer Retails HipBar is another
app that allows users to deliver alcohol directly
to their homes (source).
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Delivery of personal grooming services
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Delivery of personal grooming services
Due to the COVID-19 situation, many people found
themselves robbed of their weekly/monthly
salon/parlour visits. Due to this, there has been
a rise in the demand of personal grooming
services. UrbanCompany allows you to book a
barbers appointment at your convenience. A
person is sent to your house, and takes all the
precautions before giving a haircut. The delivery
of personal grooming services has opened up an
otherwise non-existent market. Now, people are
getting pedicures at home as well as deep-tissue
massages. The revenues of UrbanCompany have been
growing steadily, and the firm has constantly
been diversifying its services (source).
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Hence, the delivery business has been impacted by
COVID-19 in both a positive and a negative way.
The first effects were felt at the onset of the
pandemic, as it was for every business. However,
as various industries started operating again,
many people realised that delivery of goods and
services is the only way forward. Plus, there is
the concept of contactless delivery, which has
put fears of people to rest. While the lockdown
might be easing in many parts of the world,
consumers are still wary of venturing out. Which
is why hyperlocal delivery players have become
very important in enabling rapid deliveries for
consumers. The items can range from documents to
household goods, food, medicines, alcohol, and
personal grooming services. As of now, the
delivery business industry seems to be growing,
and firms are even hiring to fill roles arising
out of rapid expansion (source). All this points
to an industry poised for growth, both during and
after the times of COVID-19. So, to know more
about how you can boost your online delivery
business in this pandemic, get in touch with us
as soon as possible.
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