E-commerce platforms are experiencing a surge in the demand for essentials like groceries, as consumers choose the convenience of shopping from home to steer clear of stepping out during intense heatwave conditions. This rise in deliveries is also driving up the need for additional manpower at these companies.
Industry experts have reported that daily deliveries by e-commerce companies, including quick-commerce platforms, have surpassed 2.0 million in the last month, up from 1.2-1.5 million a year earlier. TeamLease Services, a staffing services provider, suggests that this surge could lead to a demand for an additional 10,000 operations personnel at the dark stores or distribution centers of these platforms, along with 30,000 more bikers to handle the increased volume of orders.
Ujjwal Chaudhry, a partner at consultancy firm RedSeer, noted that quick-commerce orders experienced a significant surge in the National Capital Region during the initial weeks of May. He emphasized that the growth rate in Delhi-NCR was nearly double that of other metropolitan cities.
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He attributed this largely to the heat, noting that people are reluctant to venture outside for shopping.
Executives at staffing and e-commerce firms noted that a growing proportion of consumers are ordering ice creams and beverages online in addition to groceries.
Kartik Narayan, Chief Executive of Staffing at Teamlease Services, pointed out that there’s a greater demand for bikers in grocery delivery compared to restaurant delivery. He highlighted that with the rising demand for items like ice cream and cold drinks, alongside the soaring temperatures, there’s a substantial increase in the requirement for workers both at the dark stores of the platforms and for order delivery.
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During this summer season, Amazon has experienced a notable increase in demand for ice cream and dairy products on Amazon Fresh, its grocery delivery platform.
Srikant Sree Ram, Director of Amazon Fresh, said, “We observed remarkable growth in both ice cream and dairy beverage categories, with a 43% year-on-year increase in units sold for each. Additionally, our customer base expanded, with a 20% rise in ice cream shoppers and a 33% surge in those purchasing dairy and dairy alternative beverages.”
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Jayen Mehta, Managing Director of the Amul dairy brand, noted, “We have observed a 55-60% increase in sales on e-commerce and quick-commerce channels in April-May, compared to the corresponding period last year.” He further stated that overall ice cream sales across various channels, such as grocery stores, modern trade, e-commerce, pushcarts, and ice cream parlors, have risen by 40% compared to the previous year.
Executives noted that the surge encompasses categories typically associated with the summer season.
Manish Bandlish, Managing Director at Mother Dairy, stated, “As peak summer conditions prevail across most regions of the country, we are experiencing a notable increase in demand for products such as ice cream, curd, and beverages in key markets. Ice cream sales alone have surged by more than 20% compared to the corresponding period last year.”
The demand for delivery and warehouse staff has increased by 20% compared to the previous summer. Companies have adjusted their incentive policies and enhanced working conditions for gig workers to incentivize them to work during the hot summer months. Aditya Mishra, Chief Executive of CIEL HR Services, noted, “With rising temperatures across all regions in India, consumers are minimizing their time spent outside their homes for routine purchases.”