Strartups Battle with the Outbreak: Food & Grocery Businesses' Fight


Strartups Battle with the Outbreak: Food & Grocery Businesses' Fight

The lockdown has set immense resistance to transportation & logistics. This pressure is leading to downfall of delivery services that used to deliver food and groceries in specific. The demand on onside and the problems thrown by the pandemic on the other side is leading to great struggle.

BT reported RedMart recently announcing a two-day suspension for new orders. The firm is changing its product assortment and updating its system, to ensure that delivery slots remain available.

RedMart also told The Business Times it has been ramping up its fulfilment abilities. "One of the ways that we are coping with the surge in demand is to increase our delivery capacity, (in terms of) vehicles and drivers.”

The important aspect is to have enough delivery personnel onboard. Few services said that their rider pools, are ample for meeting any increase in demand. The riders in numbers are close to 8000 in foodpandaand 6000 in Deliveroo and that’s sufficient they say to deliver food & grocery.

Foodpanda is relying on its self-learning dispatch algorithm that can account for surges in demand to plan rider deployment. Data Analytics at this point is helping these brands in a wider sense.

Both GrabFood and Deliveroo said their food orders have increased by about 20 per cent over the past few weeks. foodpanda similarly said that it has seen "week-on-week" increases in demand for food and grocery delivery, but declined to share specific figures.

BT also reported that Deliveroo is developing a rider fleet of motorbikes, bicycles, e-bicycles and on-foot delivery persons, with no current plans to take on car drivers.

Then there are supply risks. For instance, the shuttering of restaurants amid the economic downturn could squeeze the pool of vendors on these platforms, while also depressing the commissions the delivery platforms can charge.