Cloud kitchen operators and quick commerce platforms in Delhi are actively trimming their inventory levels within their dark stores due to the three-day restrictions imposed for the G-20 Summit. Concurrently, they are engaged in ongoing efforts to persuade the authorities to exempt delivery personnel from these restrictions.
According to industry insiders, these companies are anticipating a potential business downturn leading up to the closure period from September 8-10 due to the anticipated traffic restrictions in and around central Delhi.
“We are stocking our dark stores with fewer items for the coming week,” an executive at a quick commerce platform said on condition of anonymity. “Delivery of groceries like milk and vegetables has been allowed but there is a worry that delivery personnel might face difficulties in moving around.”
The person said “movement of delivery people as well as demand is getting impacted” due to the restrictions.
In the capital, food and grocery delivery platforms such as Zomato, Swiggy, Blinkit, Zepto, Swiggy Instamart, and BigBasket’s BB Now are in operation.
“Business will be hit,” Rashmi Daga, Founder and chief executive of cloud kitchen platform Freshmenu, said.
“We have three kitchens in the restricted areas, which will be shut during the three days. But even before that we are expecting lesser revenues because traffic restrictions keep happening,” she said.
“At least, this hasn’t come as a shock, so there is time to prepare for it to reduce wastage,” Daga added.
Restaurants and food and grocery delivery companies are persistently engaging in discussions with the Delhi government and Delhi Police to secure exemptions for food delivery personnel from the imposed restrictions.
Nonetheless, an individual familiar with the talks mentioned that the city administration and police have hinted at potential security issues associated with allowing unrestricted movement of delivery personnel within the controlled areas.
“It will be a loss of revenue,” the person said. “Unlike ecommerce or online retail, for which the revenue gets postponed, people not ordering food during those days will not order more once they’re back.”
On Monday, SnackFax had highlighted that food delivery platforms, restaurant chains, and food services companies had appealed to the authorities to categorize deliveries as “essential services,” akin to the measures implemented during the pandemic lockdowns, for the duration of the G20 Summit.
Read More: Restaurant chains and food delivery platforms seek ‘essential’ status amid G20 closures
In a public notice, the Delhi Police have clarified that there are “no restrictions on the movement of essential commodities entering through Delhi borders.” However, they have not issued any specific directives regarding the allowance of food deliveries.
The city’s traffic police have issued a warning to commuters, advising them to refrain from traveling within the restricted areas and suggesting the use of metro rail services instead. Additionally, it’s worth noting that all central government offices in the national capital will remain closed from September 8 to September 10.
Apart from the anticipated disruptions to food and grocery deliveries and dining out, it is also expected that ecommerce deliveries will face delays within the restricted zones over the course of the three-day period.
