Bike taxi ban delivers a blow to Delhi ecommerce

Ecommerce deliveries are going through important disruptions in Delhi, executives at on-line platforms and impacted manufacturers mentioned, including that their on-ground groups are being penalised and harassed amid confusion, following the Delhi authorities’s current order on banning use of two-wheelers as taxis.

“The recent changes in regulations on bike taxi services in Delhi have caused confusion and disruption to food and quick commerce delivery aggregators. Our delivery executives are being wrongly issued challans despite the notification being applicable only to bike taxi service providers,” mentioned a spokesperson for Swiggy, which delivers meals and grocery by means of its Instamart platform.

“While the notice is only for passenger vehicles, there is some misinterpretation on the ground,” mentioned a spokesperson for Zomato, which additionally operates grocery platform Blinkit.

For manufacturers and meals supply, ecommerce stays a quickly rising channel regardless of post-pandemic reopenings of bodily shops.

“There is confusion about the notification and it is impacting and delaying ecommerce deliveries in the national capital. A significant part of our business comes from deliveries and the lack of clarity in such notifications is disruptive to business,” mentioned Saurabh Khanijo, managing director, Kylin chain of eating places.

Dinker Vashisht, group VP, public coverage, Swiggy had despatched a letter to the commissioner of transport division, Delhi authorities on Tuesday.

“The recent directions on two-wheeled vehicles have been misrepresented by the RTO (regional transport office) officials, who have started issuing challans to delivery partners despite the fact that they have not been in violation of the direction of the notification,” the letter mentioned.The letter addressed to Ashish Kundra, principal secretary and commissioner, transport division, Delhi authorities, additionally mentioned: “This has led to disruption of services and confusion among the delivery partners, who are now apprehensive of providing their services with fear of being penalised and harassed while on duty.”

ET’s question in search of remark from the Delhi transport division didn’t elicit a response until press time.

Late final month, the Delhi authorities had mentioned that the bike taxis wouldn’t be allowed within the nationwide capital, stating that app-based aggregators which are operating private bikes as taxis had been in violation of the Motor Vehicles Act. Bike taxi companies together with these of apps comparable to Ola, Uber and Rapido have been banned within the metropolis.

According to the Swiggy spokesperson, some challans have been issued to supply executives in extra of Rs 15,000.

Quick commerce platforms, which ship necessities, grocery and family items wherever between 10 and 20 minutes, are contributing 10-30% of gross sales of packaged items firms, the executives mentioned, including that any disruptions influence gross sales considerably.

Vikram Agarwal, managing director of GreenDot Health Foods, which owns the Cornitos model of snacks, mentioned, “Quick commerce platforms are now contributing 20% of our overall sales. Absence of clear guidance on such notifications hampers seamless deliveries.”

Nestle, Coca-Cola and Emami have mentioned in administration commentary throughout post-earnings calls that fast commerce platforms are rising “very rapidly”.

Stay on prime of expertise and startup news that issues. Subscribe to our day by day e-newsletter for the most recent and must-read tech news, delivered straight to your inbox.