Coronavirus impact: Swiggy, Zomato orders drop 60%
BusinessToday.In March 26, 2020
Restaurants have taken a severe beating since the outbreak of coronavirus. By extension food delivery platforms such as Swiggy and Zomato -- that are by itself functioning -- have also taken a big hit. Orders on Swiggy and Zomato have dropped 60 per cent amid the pandemic.
While both the platforms are operational, they are working with minimal delivery executives and restaurant partners. In some parts of the country, delivery partners have refused to step out fearing police action, as mentioned in a report in The Economic Times.
Kitchens are also facing difficulty in procuring supplies, forcing a lot of them to shut shop. With no dine-in services and big drop in online orders the restaurant industry has been severely impacted.
Anurag Katriar, President of National Restaurant Association of India told the daily that 95 per cent of restaurants are offline. He added that the staff can't be put in risk and that supply also is not very smooth. Some have been forced to shut due to the shortage of staff and supplies.
"There has been a short-term impact in terms of softening in volumes which can be attributed to the shortage of supply due to temporary closure of many high-volume restaurants located in malls and disruptions on-ground across certain states," stated a Swiggy spokesperson.
Food delivery executives are also facing challenges due to local authorities and policemen while delivering. While food delivery services have been termed as essential, local authorities in many parts of the country have misinterpreted the order.
Zomato that is operating at 30 per cent is also facing challenges while delivering orders. CEO Deepinder Goyal told the daily that they are currently working with the authorities to sort out the matter.