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E-commerce platforms are witnessing a notable surge in demand for essential items such as groceries, as consumers are increasingly turning to the convenience of shopping from the comfort of their homes and avoid venturing out during the heatwave conditions. This heightened demand for deliveries is also driving up the need for additional manpower across e-commerce and quick-commerce companies, according to an Economic Times report.
Demand trends and projections
Industry experts reveal that in the past month alone, daily deliveries by e-commerce entities, including quick-commerce platforms, have escalated to over two million, compared to 1.2-1.5 million deliveries recorded a year earlier.
TeamLease Services, a prominent staffing services provider, projects that this surge could translate into a demand for approximately 10,000 additional operations personnel at the dark stores or distribution centres of these platforms, along with a requirement for an additional 30,000 bikers to facilitate order deliveries.
Ujjwal Chaudhry, a partner at consultancy firm RedSeer, said that quick-commerce orders witnessed a significant upsurge, particularly in the National Capital Region (NCR) during the initial weeks of May. “The Delhi-NCR region has exhibited an almost twofold growth compared to overall growth from metropolitan cities,” he said.
The surge is mainly attributed to the ongoing heatwave conditions, which are discouraging people from going outdoors for shopping.
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Summer shopping trends
Executives at staffing and e-commerce firms also point out the rising trend of consumers ordering ice creams and beverages online, alongside groceries.
Kartik Narayan, chief executive of staffing at Teamlease Services, said, “Grocery delivery is witnessing a greater demand for bikers than restaurant delivery.” As temperatures rise and demand for goods like ice cream and cold beverages increases, there’s a substantial uptick in the requirement for workers at both dark stores and delivery operations.
In addition, Amazon has experienced a notable surge in demand for ice cream and dairy products on its grocery-delivery platform, Amazon Fresh, this summer. Srikant Sree Ram, director of Amazon Fresh, said that the company reported a 43 per cent Year-on-Year (Y-o-Y) increase in units sold for each category, with a 20 per cent rise in ice cream shoppers and a 33 per cent surge in those purchasing dairy and dairy alternative beverages.
Jayen Mehta, managing director at Amul, noted a significant increase in sales through e-commerce and quick-commerce channels compared to last year, with an overall 40 per cent increase in ice cream sales across various retail channels.
E-commerce response and sales trends
Executives across the industry observe a surge in demand for summer-facing categories, including ice creams, curd, and beverages.
Manish Bandlish, managing director at Mother Dairy, said, “With peak summers prevailing across most regions of the country, we are witnessing a significant surge in demand in portfolios like ice-creams, curd and beverages across key markets. Ice-creams alone have witnessed a rise of upwards of 20 per cent compared to the same period last year.”
The demand for delivery and warehouse staff has surged by 20 per cent compared to the previous summer. Companies have adapted by revising incentive policies and enhancing working conditions for gig workers to mitigate the challenges posed by the scorching weather.
Acknowledging the challenges faced by delivery partners in such unprecedented conditions, e-commerce firms claim to be providing support measures. Swiggy, for instance, has established over 300 zones in high-demand areas where delivery executives can rest in shaded areas and have access to refreshments. Similarly, Zomato has set up 450 resting points across multiple cities, with plans to expand this to over 4,000 by June. Blinkit, on the other hand, has stocked up its stores with essential beverages and installed coolers to provide immediate relief from the heat.
As temperatures continue to rise and with summer yet to peak, fulfilling the escalating demand remains a formidable challenge for e-commerce companies and their delivery partners alike.
