AAP keeps e-commerce companies guessing

The online retailers are keeping their fingers crossed considering Kejriwal's apparent preference for the brick and mortar players

A leading name in online retail had recently called Aam Aadmi Party (AAP) the most disruptive force in Indian politics. Now, e-commerce players, including app-based taxi service providers, are fearing uncertainty, as AAP’s Arvind Kejriwal is set to become Delhi’s chief minister. Kejriwal had opposed e-commerce and indicated his preference for brick and mortar players. In recent months, traditional retailers have been fighting against the growing online business in the country.

While the AAP does not mention e-commerce in its manifesto, the 26-month party is opposed to foreign direct investment in retail, a stand similar to that of the current Narendra Modi-led government.

Media reports quoted Kejriwal as saying e-commerce was a “scam” for its predatory pricing model and he would investigate the matter. He had also said he would back offline retailers. However, Kejriwal had later said he was misquoted.

In recent times, e-commerce companies have been under the scanner of state authorities for violation of various tax norms. Apart from e-commerce, app-based taxi service providers have been facing multiple issues, especially after a woman passenger was allegedly assaulted in a cab operated by US-based Uber last year.

“There are issues that need to be resolved with more dialogue with the new government. We also will pitch the fact that app-based services do have a positive impact on income of taxi drivers,” said a founder and chief executive of app-based taxi service firm.

Ola co-founder and  Chief Executive Officer Bhavish Aggarwal said his company was committed to creating a progressive ecosystem for transportation. Snapdeal, a top-ranking marketplace player, said the company is looking forward to Delhi becoming the  number one destination for startups in India. “Snapdeal will work with the Delhi government to create 100,000 jobs in the next five years,” said Kunal Bahl, co-founder and chief executive of Snapdeal.