The limited release product, The Broken Bat Gin, is now available for purchase in three Indian states - Goa, Maharashtra and Karnataka.
NAO Spirits, the innovative brand that has been disrupting the craft gin market in India with their popular London Dry Gin – Greater Than and the country’s first-ever Himalayan Dry Gin – Hapusa, has now introduced a limited release product – The Broken Bat Gin.
This marks the third limited release from the brand, following the successful launch of two other gins – Juniper Bomb and No Sleep – over the past two years.
Nao Spirits has put a unique spin on classic gin by creating a barrel-aged version that has a taste resembling whisky. The brand developed this gin with the intention of attracting India’s vast population of brown-spirit drinkers. Since there is no traditional history of barrel-aging in India, the team at NAO drew inspiration from a cherished aspect of Indian culture – cricket bats – to create their own version of an aged gin.
In the creation of their distinct barrel-aged gin, Greater Than’s distillers carefully prepared Kashmir Willow cricket bats by shaving and cleaning them, before immersing them in a vat of high-proof Greater Than Gin for a six-week period. The resulting gin has a flavor profile that is reminiscent of whisky. While the cricket bats were obtained from a crowdsourcing effort, with many people contributing broken or chipped bats lying around their homes, the team also collaborated with a bat-maker in Kashmir to acquire wood that would have been discarded due to cracks or chips.
The limited release product, The Broken Bat Gin, is now available for purchase in three Indian states – Goa (priced at INR 1450), Maharashtra (priced at INR 2400), and Karnataka (priced at INR 2450).
Chef Harpal Sokhi’s restaurant chain, Karigari, renowned for its unique fusion of traditional Indian cuisine with a contemporary touch, has declared its plans to expand its presence both in India and overseas over the next few years.
Karigari has become a popular choice among food enthusiasts throughout India, thanks to its exceptional menu and delightful ambience.
This year, Karigari has earmarked INR 30 crore rupees to open new branches in important cities such as Delhi, Mumbai, Pune, Bangalore, and others across India. With its exceptional menu and inviting ambience, Karigari has already become a favorite destination for foodies throughout the country, and this expansion is expected to further increase its popularity.
Karigari is dedicated to sourcing the freshest ingredients and hiring highly skilled chefs to craft dishes that are not only delectable but also visually appealing.
By 2024, Karigari has set its sights on expanding its reach to include Dubai and London as well.
“We are excited to broaden our reach and bring our culinary expertise to new markets. We are confident that our customers will appreciate the quality of food and service we provide at our new locations, which will highlight the best of Indian cuisine and hospitality,” said Yogesh Sharma, Founder of Karigari who is planning to open 10 outlets by year end.
Bisleri's latest campaign centers around the Bisleri 500 ml pack as the perfect hydration companion, as depicted in their film.
Bisleri, one of India’s leading packaged drinking water brands has launched a new digital campaign, Bisleri #CarryYourGame, which showcases the talents of award-winning athletes Lovlina Borgohain, Manpreet Singh, Ashwini Ponappa, and Nishad Kumar.
Bisleri’s latest campaign centers around the Bisleri 500 ml pack as the perfect hydration companion, as depicted in their film. The campaign features top athletes from India, displaying their athletic prowess both on and off the field in an exciting and dynamic video. The film encourages viewers to prioritize hydration in all situations, much like the showcased athletes do in their real lives and during match days.
Commenting on the latest campaign, Tushar Malhotra, Head Of Marketing, Bisleri International Pvt Ltd, said, “Our new campaign Bisleri #CarryYourGame is one of the largest integrated marketing campaign with the aim of creating a strong connect between hydration and sport, underscoring the importance of water in peak human performance. Our association with India’s leading award-winning athletes aims to inspire the youth to stay hydrated and carry their best game forward in all aspects of life.”
Commenting on the new campaign, Anuraag Khandelwal, Chief Creative Officer – India, 82.5 Communications, said, “This campaign is the perfect occasion for a need and a product to come together. Hydration during every sporting event and life in general is necessary. That’s where Bisleri comes in as a hydration partner in a sport that we play every day, every moment – the sport called life. This was an opportunity for us to explore hydration, collaborating with athletes who are at the top of their games. This is how the campaign idea for #CarryYourGame was born. True champions always carry their game, on and off the field and there’s no better partner than Bisleri 500 to hydrate with. Bisleri communicates this in its own edgy, no-gyaan way.”
Neerav Tomar, MD, IOS Sports And Entertainment commented on the association of the Indian athletes, “We are happy to be associated with a legendary brand like Bisleri that is taking a fresh approach through Olympic sports. I am confident this will help them to have a higher brand recall in an uncluttered space.”
To enhance the reach of the #CarryYourGame campaign, it will be linked with prominent marathons, athletic organizations, cricket collaborations, and other noteworthy sports events.
Additionally, Bisleri has introduced exclusive bottles for the #CarryYourGame campaign featuring popular cricketers from Mumbai Indians, Gujarat Titans, Delhi Capitals, and Rajasthan Royals, printed on each Bisleri bottle.
The campaign will be promoted through various mediums such as digital content, Out-of-Home advertising, delivery truck branding, radio contests, OTT platforms, in-stadium vending, and branding, among other touchpoints, providing consumers with an immersive and thrilling experience.
The Department of Labor has fined three McDonald’s franchisees in Kentucky for violating labor laws. The franchisees were found to have employed more than 300 children who worked longer hours than legally permitted, among other violations. One franchisee even had two 10-year-olds working without pay as late as 2 a.m at its locations. Shockingly, one of these children was tasked with operating a deep fryer, a responsibility that is explicitly prohibited for individuals under the age of 16 according to the Labor Department’s regulations.
The Department of Labor has imposed a fine of almost $40,000 on Bauer Food, which runs 10 locations in Louisville, for various violations. One such violation was the employment of 10-year-old children who were involved in tasks like preparing and distributing food orders, cleaning the store, working at the drive-thru window, and operating a register, as per the Labor Department’s findings.
“Under no circumstances should there ever be a 10-year-old child working in a fast-food kitchen around hot grills, ovens and deep fryers,” said wage and hour division district director Karen Garnett-Civils in a news release.
The crackdown happened after the government investigated fast-food employment practices in the southeast with an eye on teenage — and younger — workers. “We are seeing an increase in federal child labor violations, including allowing minors to operate equipment or handle types of work that endangers them or employs them for more hours or later in the day than federal law allows,” Garnett-Civils said.
In addition to the fine imposed on Bauer Food, the Department of Labor has also penalized Archways Richwood, which operates 27 McDonald’s locations in Walton, with a fine of $143,566. The reason for this fine was allowing 242 minors, aged between 14 and 15, to work beyond the legal limits. Bell Restaurant Group I, which operates four locations in Louisville, has also been fined $29,267 for similar violations. The company allowed 39 minors, aged 14 and 15, to work longer than permitted, and even permitted two of them to work during school hours.
Attempts to contact the three franchisees for their comments were unsuccessful at the time of reporting.
According to a press release, the wage division revealed that it found 688 minors working illegally in hazardous jobs, which is the highest number since 2011. The release cited an example of a 15-year-old employee who sustained hot-oil burns while operating a deep fryer at a McDonald’s location in Morristown, Tennessee.
The government’s actions are particularly notable as some conservative groups and multiple states have been advocating to roll back child-labor laws. For instance, Arkansas Governor Sarah Huckabee Sanders signed a law in March that eliminated regulations necessitating work permits for 14- and 15-year-olds prior to engaging in paid employment. In Ohio, a bill is being proposed that would allow minors aged 14 and 15 to work until 9 p.m. during the school year, which is later than what federal laws permit. Furthermore, in Minnesota and Iowa, bills that seek to ease child-labor laws are making progress.
In February, the Biden administration launched an initiative aimed at addressing child labor in industries that predominantly employ low-wage and migrant workers, who are at higher risk of exploitation. Experts suggest that a tight labor market and an increased number of unaccompanied children arriving from Latin America have contributed to the rise in child-labor-law violations.
Quick-service restaurant chain KFC India achieved a sales growth of 25% in the first quarter that ended on March 31, while Pizza Hut in the same period saw a 16% growth in sales within the country.
Yum! Brands Inc, the owner of KFC and Pizza Hut brands, disclosed its first quarter earnings on Wednesday.
Moksh Chopra, General Manager, KFC India BMU (Nepal, Bangladesh, Sri Lanka and Maldives), said, “The quarter ending March recorded a 25 percent system sales growth for India and area countries. Continuing the momentum from last year, we focused on expanding our footprint across the country to over 800 restaurants.”
“We strengthened our commitment towards increasing consumer accessibility with the launch of our first Smart Restaurant in West Bengal, and added our 17th Sustainable Restaurant in the country, in Punjab. This quarter saw us bring back one of our most iconic and loved products, Chizza, and occasion-based offers such as Big Treat Week and Chicken Feast Week gave fans a chance to enjoy their favourite KFC products at great value,” he added.
The Indian segment of KFC’s business is estimated to make up roughly 2% of the company’s total sales. Similarly, Pizza Hut India contributed around 2% to the brand’s global sales.
In an earnings statement, David Gibbs, Global CEO, Yum! Brands, Inc, said “Our first-quarter results continue to illustrate the power of our global portfolio and the advantages of our business model. The demand for our iconic brands is evident as our incredible teams and franchise partners delivered another strong quarter with system sales growth of 13 percent, excluding Russia, driven by 8 percent same-store sales growth and continued development momentum.”
During the March quarter, the demand for daily groceries and essential goods experienced a significant boost of 3.9%, which is the highest it has been in two years. This increase in demand was primarily driven by urban markets, although there was also a noticeable improvement in sales in rural areas.
According to Kantar Worldpanel, a global consumer research firm owned by WPP, the volume of fast-moving consumer goods (FMCG) purchased increased by 2.1% in rural markets and 5.9% in cities compared to the previous year. This data is a stark contrast to a year ago when the overall market experienced a decline of 1.3% during the quarter, with the decline solely driven by a 3.7% drop in urban demand.
“Impact of inflation and monetary tightening on economic growth and demand seems to be slowing down. We are seeing demand slowly starting to come back, especially in India, in places where there is stress,” Sunil D’Souza, Managing Director at Tata Consumer Products, told analysts.
Kantar tracks household consumption and also monitors items from the unorganized sector of the market, especially in large and voluminous categories like staples. The growth during the quarter was led by food and beverages, with wheat flour performing exceptionally well in March.
K Ramakrishnan, South Asia Managing Director of Kantar, said, “This came on the back of households returning to the category after the government stopped the free grains distribution. The growth we witness, therefore at the moment, is not yet holistic.”
To increase volume growth amid easing inflationary pressures, companies have been reversing grammage cuts in the past few months. Furthermore, many companies anticipate a consistent rise in volume-led growth and recovery in rural areas as they consider reducing product prices.
According to Sanjiv Mehta, the Managing Director of HUL, the most significant factor that can boost consumption is a decrease in commodity prices. He emphasized that inflation has a detrimental impact, particularly on individuals from lower economic backgrounds, and a reduction in commodity prices can stimulate consumption. Additionally, Mehta stated that a significant portion of HUL’s growth will be driven by volume.
“In the December quarter, we had 11% price growth, now it is 7%, and in the next quarter, it will go down even more. That’s the whole cycle until it reaches a state of equilibrium, where it will again be about 70% volume growth and 30% price growth”, said Sanjiv Mehta.
In an announcement made on Wednesday, the Union Home Ministry informed that meals served to the Central Armed Police Forces (CAPFs) and National Disaster Response Force (NDRF) will now include dishes prepared with millets.
According to an official statement, the decision to incorporate 30% millets in the meals served to the forces was made after thorough discussions with all the forces, as per the directive of Union Home Minister Amit Shah.
It has been stated that the Ministry of Home Affairs, led by Prime Minister Narendra Modi, has made a significant decision to incorporate millets in the meals provided to personnel of the CAPFs and NDRF, during the International Year of Millets-2023.
The United Nations has designated 2023 as the International Year of Millets, recognizing the importance of millets and their potential to create both domestic and global demand, as well as their ability to provide nutritious food to people.
Millets are a healthy food option that not only benefit individuals, but also offer advantages to farmers and the environment. These grains are rich in energy, resilient to drought, require less water, and can be cultivated effortlessly in arid soils and hilly areas. Additionally, they are less vulnerable to pests.
Millets offer several significant advantages, including being a valuable source of protein, gluten-free, low in Glycemic Index (GI), and rich in dietary fiber, micronutrients such as calcium, iron, phosphorus, and phytochemicals. These nutritional benefits make millets an excellent addition to a soldier’s diet, enhancing its overall nutritional profile.
The Home Ministry issued a directive for all military forces to incorporate millet-based meals into their menus.
The military forces have responded positively and expressed enthusiasm for regularly incorporating millets into their meals. Additionally, millets will be extensively utilized in various functions and events of the Central Armed Police Forces (CAPFs) and National Disaster Response Force (NDRF).
To make millets readily accessible, specific counters/corners will be established in Kendriya Police Kalyan Bhandar, grocery shops located on the campuses, and ration stores.
The military forces will arrange for the training of cooks in the preparation of millet-based dishes through reputable institutes specializing in this field.
Expert agencies and dieticians will be employed to raise awareness among troops and their families about the benefits of millets and their usage.
In addition to this, a variety of events such as exhibitions, seminars, webinars, workshops, and symposiums will be organized to promote the awareness of “Know Your Millets.”
According to the statement, the International Year of Millets 2023 will offer an opportunity to enhance global production, efficient processing, and better utilization of crop rotation, while also promoting millets as a significant component of the food basket.
Magicpin, India’s inaugural hyperlocal startup, recently revealed that it is successfully fulfilling over 10,000 orders each day on the ONDC network. This is being achieved through its own seller portal as well as those of other startups such as Pincode Spice Money, Mystore, Craftsvilla, Meesho, and Paytm.
Magicpin is using its backend and logistics support to assist these startups in reaching hyperlocal markets throughout the country. Within just two weeks, magicpin has scaled up from fulfilling less than 1,000 orders per day to meeting 10,000 daily orders.
In early April, Magicpin declared that it had enlisted more than 25,000 food merchants from its network of local restaurants, becoming the biggest restaurant aggregator/supplier on ONDC. These merchants are now accessible through other startup participants such as Paytm, Pincode Spice Money, Mystore, Craftsvilla, Meesho, among others.
T Koshy, MD and CEO of ONDC said, “We are thrilled to see Magicpin’s tremendous growth on the ONDC network. Their hyperlocal expertise and logistical support has been invaluable to not only their own sellers but also to other participants on the ONDC network. This is exactly the kind of collaboration and innovation we envisioned when we created ONDC, and we look forward to continuing to facilitate it to drive the growth of digital commerce in India.”
Anshoo Sharma, CEO & Co-Founder Magicpin said, “Our first mover advantage on the Hyperlocal front, gives us a great opportunity to not only contribute towards success of ONDC, in fact we also look forward to give our logistics, delivery and reach support to other start-ups in the country wanting to penetrate the hyperlocal markets across India, it will not only save them a lot time but huge amount of financial resources to use an existing mechanism rather than creating one for themselves from the scratch. Our biggest motivation is still the fact that at the end of the day business is going to the local retailer on the ground, this evident from the fact that in two weeks from less than 100 orders a day we had a 10x jump to 1000 orders a day and then in the next 2 weeks, Magicpin has scaled up to 10,000 plus orders a day which was again another 10x from the previous landmark, making it more than 3 lakhs order per month, which eventually is helping the retailers on ground.”
Once a customer places an order on the buyer app, Magicpin takes over and manages the entire fulfillment process, including logistics and delivery from the restaurant partner to the end-user. This end-to-end delivery service is on par with the level of service offered by other providers in the market.
What’s remarkable is that the entire process has been developed with zero physical intervention. Instead, existing ecosystems are integrated through technology, creating a single platform on ONDC while generating business opportunities for local retailers. This approach avoids the need for new inventory, dark-stores, or warehouses.
Recently, PhonePe unveiled its Pincode initiative to tap into hyperlocal markets throughout the country. To facilitate this, PhonePe will be using magicpin’s last-mile connectivity on ONDC, just like other platforms such as PayTM, Spice Money, Mystore, Craftsvilla, Meesho, among others. Moreover, Magicpin is also handling the backend logistics related to ordering and delivery for other ONDC participants.
One year ago, the National Restaurant Association of India (NRAI) urged its members to stop partnering with food delivery giants Swiggy and Zomato. The objective was to eradicate the overwhelming control these food aggregators had and thereby put a halt to the alleged price monopoly these platforms were accused of creating, according to the association.
Despite launching several campaigns, including Swiggy and Zomato logout campaigns, Order Direct, and more, the association’s efforts to achieve their objective were unsuccessful.
As per their annual reports, both Zomato and Swiggy recorded significant growth in order volume in CY22 as compared to CY21.
After a year, restaurants affiliated with the NRAI have come together once again to explore alternative means of obtaining a significant share in India’s online food delivery industry. However, this time they have the support of the Open Network for Digital Commerce (ONDC).
Established on December 31, 2021, as a non-profit private company by the Department for Promotion of Industry and Internal Trade (DPIIT), the Open Network for Digital Commerce (ONDC) commenced its pilot phase in April 2022 across five cities, namely Bengaluru, Delhi NCR, Shillong, Bhopal, and Coimbatore. Additionally, ONDC has initiated its beta pilot in Bengaluru and certain Tier 2 cities.
Numerous restaurant owners and industry participants are of the opinion that the platform holds the capability to eliminate the duopoly that Swiggy and Zomato have established in the sector over the years.
At present, NRAI is collaborating with technology players and providing training to assist restaurants in joining ONDC with the objective of terminating the supremacy of Swiggy and Zomato in the industry.
ONDC has also enlisted the support of various restaurant networking partners. For example, Magicpin, a savings and discount platform backed by Zomato, has already partnered with 22,000 restaurants in Bengaluru and Delhi-NCR and intends to extend its reach to other cities soon. Similarly, DotPe, another restaurant aggregator, is also assisting restaurants in joining the ONDC network.
It is noteworthy that the current challenge to the dominance of Swiggy and Zomato in the $50 billion food services market is not the first one.
Previously, global e-commerce giant Amazon and mobility unicorn Ola attempted to secure a portion of the market share in the sector but were unsuccessful due to the supremacy of the two established players.
As per several reports, Swiggy is the leading player in the southern region, while Zomato holds a dominant position in the northern area, particularly in the food delivery segment.
Nevertheless, the dominance of these two players may be short-lived with the introduction of ONDC in the market. This is because the platform has been developed to promote healthy competition, ensure a level playing field for small merchants, and terminate the dominance of a few players.
How can the ONDC address the challenges plaguing the food technology sector?
Nearly all the players operating in the food and beverage industry bear significant expenses for customer acquisition and retention.
Over the past few years, experts in the industry have observed that Zomato and Swiggy have taken advantage of this situation by significantly increasing the commissions they charge their partner restaurants. These commissions were formerly between 2-5%, but have now risen to 18-24% of the average order value.
The reason for this is that Zomato and Swiggy have built up a vast user base comprising millions of customers, which they have chosen not to disclose to their restaurant partners.
To put it simply, your preferred restaurant may not be aware that you are a regular customer of theirs, as Zomato and Swiggy do not share customer information with their partner restaurants.
For restaurants, this becomes a significant issue since they may have been operating in the market for years, yet they have little knowledge of their end consumer’s identity due to the lack of customer information provided by Zomato and Swiggy.
The rating mechanism is another critical issue that food aggregator platforms face, as it is a crucial metric for customer retention.
According to Pranav Rungta, The Director of Mint Hospitality Ltd and The Head of NRAI’s Mumbai chapter, “The ratings system of online aggregator platforms is flawed. Although the customers are the ones who give ratings, the algorithms on Swiggy and Zomato change the game, putting restaurants at a disadvantage.”
Industry experts believe that ONDC has the potential to address the challenges mentioned above to a certain extent.
An example of how ONDC could alleviate some of the challenges mentioned is by reducing the customer acquisition cost (CAC) that restaurants often bear even for repeat orders. ONDC’s network may not require such costs, providing a more cost-effective solution for the restaurants.
One advantage of ONDC is that it has multiple buyer-side apps such as Paytm, PhonePe, Meesho, Pincode, and Magicpin with a significant number of existing users. Therefore, there won’t be a need for additional cash to be spent on customer acquisition as compared to other food aggregator platforms.
By being listed on ONDC, restaurants gain a natural advantage as they become accessible to millions of users who already use buyer-side apps like Paytm, PhonePe, Meesho, Pincode, and Magicpin, among others, without any additional cash-burn to acquire customers.
A recent McKinsey report points out that online food delivery aggregators attract customers by spending on marketing, advertising, and discounts, as well as by chasing faster deliveries and acquiring cloud kitchens, which are included in their customer acquisition costs (CAC).
The merchants/restaurants listed on ONDC will have access to the data of the customers who order food, which sets it apart from Swiggy and Zomato. This will enable them to understand their target market, customer behavior, and ordering patterns.
According to Rungta from NRAI, the rating systems of restaurants on ONDC will be based on customer feedback, rather than platform algorithms, which would lead to greater transparency in the food delivery space.
The culmination of all these factors is anticipated to be advantageous for restaurants, with the profitability of eateries and food pricing being the most crucial ones.
Can ONDC offer a win-win situation for restaurants and customers?
Currently, in the food delivery space, Swiggy and Zomato have complete control over the funnel, including pricing, logistics, discounts, payments, and more.
According to NRAI and other industry bodies, this has created a captive ecosystem where restaurants have no control.
Moreover, the food delivery entry of ONDC is significant as it comes at a time when the valuation of both the food delivery giants, Swiggy and Zomato, has suffered a setback.
Swiggy and Zomato, the two food delivery giants, have recently experienced a significant decrease in their valuations. Invesco, Swiggy’s earliest backer, has marked down its valuation by 25% to $8 billion, and Zomato’s market capitalisation on stock exchanges is hovering around $5 billion, which is down 50% from its highest market cap since its listing.
In response to the decline in their valuations, both Swiggy and Zomato have been implementing cost optimizations and revising their pricing strategies. These changes include raising delivery charges and commissions from restaurants, as well as reducing deep discounts and free deliveries.
Swiggy has recently introduced a platform fee of INR 2 per order, regardless of the order value.
Furthermore, both companies have introduced loyalty programs such as Zomato Gold and Swiggy One, which provide customers with benefits such as free deliveries and discounts.
Zomato Gold, which was reintroduced by Zomato earlier this year, offers free deliveries within a 10 km radius, VIP access during peak hours, and cashbacks for three months to customers for a fee of INR 149.
SwiggyOne is another loyalty program that Swiggy offers. For a fee of INR 299, customers can get free deliveries across Swiggy’s platforms, Instamart and Genie.
Restaurants, too, are rethinking their pricing strategies and adopting tactics such as offering free deliveries to attract more customers.
According to sources within ONDC and NRAI, the commissions charged by buyer and seller side apps, as well as third-party logistics players, will be around 2-3% each on an average order value. In total, this commission is expected to be less than half of what restaurants currently pay to Swiggy and Zomato.
According to industry experts, the combined platform commissions and third-party logistics charges on ONDC are estimated to be around 8% of the average order value, which is significantly lower than the 18-24% charged by Swiggy and Zomato. As a result, restaurants on ONDC will be able to offer cost savings to their customers and retain their loyalty.
“The restaurants may even look at absorbing the delivery costs and pay third-party logistics players instead of passing on the whole delivery charges to their customers, which is the case with Swiggy and Zomato right now,” Pranav said.
In order to gain more insight into the commissions at stake and determine whether ONDC-affiliated restaurants provided free delivery, a comparison was done. It was discovered that a McDonald’s burger from the closest location was 158% less expensive when ordered through ONDC than through Zomato.
Another comparison of the prices between ONDC and Swiggy was done, keeping all key metrics, location, and timing consistent. The examination revealed that, even with discounts applied, Swiggy was 95% more expensive than ONDC.
It is worth noting that Swiggy and Zomato both charge a delivery fee, which they state is paid to their delivery partners. Conversely, the majority of deliveries on ONDC were free of charge.
Another noteworthy point concerns the discounts provided by Swiggy and Zomato. Initially, they offered significant discounts to attract customers; however, as their user base grew, the discounts provided were considerably reduced, while the commissions charged to restaurants were raised.
As per experts in the industry, this practice has compelled several restaurants to raise the prices of their menu items.
Meanwhile, ONDC has emerged as an alternative platform where restaurants can provide more appealing discounts than Swiggy and Zomato, and additionally cover a portion of the delivery costs, resulting in advantages for the end consumer, and enabling them to retain customers.
Therefore, the network has become a new source of optimism for numerous restaurants who desire the removal of the ongoing duopoly in the market.
Nonetheless, ONDC must overcome some obstacles to succeed.
Presently, an expanding number of ecommerce platforms, payment aggregators, and logistics companies, as well as physical stores and restaurants, are joining the ONDC movement.
It is worth mentioning that the ONDC model is presently operating exclusively in a few selected cities. The true challenge for the platform will arise when it expands to cities and towns beyond the metropolitan areas. The reason being that the platform might encounter difficulties in acquiring smaller players with limited technical proficiency.
ONDC is anticipated to enlist the support of aggregators and industry organizations to address this concern. However, considering the pace at which the network has grown in the last twelve months, this process seems to be time-consuming.
Currently, the government-supported ONDC has low awareness, and the platform needs to improve its approach to onboard additional merchants.
In the coming months, the network aims to tackle the challenge of enhancing the discoverability of food menus on the buyer-end apps.
PhonePe has recently introduced an ONDC-focused buyer-side app called Pincode to enhance the user experience, whereas sources suggest that Paytm is developing UI/UX designs to help customers navigate ONDC offerings.
Regarding the food delivery sector, an essential element to consider is logistics. Swiggy and Zomato have managed to secure a significant portion of the online food delivery market promptly due to their in-house logistics capabilities and several acquisitions, which have contributed to enhancing their operational efficiency.
It would be unreasonable to expect restaurants to compete with the logistics capabilities of Swiggy and Zomato. Therefore, there will likely be a natural reliance on third-party logistics players such as Dunzo, Shadowfax, Delhivery, and Loadshare to assist with food deliveries.
It will be interesting to see how ONDC enables these third-party logistics platforms and restaurants to work together in tandem, given the current scenario.
However, unlike Amazon and Ola, which were unable to sustain in this market due to high customer acquisition costs and unsustainable discounts, ONDC may have a better chance if it is able to onboard more players like Paytm and PhonePe.
Swiggy, a food and grocery delivery company, has facilitated the disbursement of INR 31 Crore in claim amounts to its delivery partners during FY23.
With approximately 300,000 delivery partners spread across 500 Indian cities, Swiggy has been offering insurance coverage to its partners since 2015, as stated by the SoftBank-backed company.
In collaboration with Reliance General Insurance, Swiggy now offers health insurance, personal accident coverage, accidental death coverage, and mobile phone damage coverage to its delivery workers. The mobile insurance coverage can go up to INR 5,000, and the delivery personnel can avail themselves of hospitalization and outpatient department (OPD) coverage. In case of fatalities, Swiggy delivery workers receive INR 10,00,000, and 96% of claims are settled within seven days.
Female delivery partners and the spouses of male delivery partners are also eligible for maternity coverage under Swiggy’s policies. Furthermore, in an effort to create a safer work environment for female partners, the company launched a “Prevention of Sexual Harassment” policy in 2022 to handle any related grievances.
As tech companies face mounting pressure to compensate gig workers fairly, this announcement comes at a time when they are also striving to generate profits.
Zomato, which competes with Swiggy, has also introduced a range of benefits for its gig workers. The company, based in Gurugram, declared on September 27, 2022, that it is piloting a health cover program worth INR 3 lakh, which can be extended to the families of delivery workers who have been loyal to the company for 2-3 years. Additionally, Zomato provides its delivery partners with a life cover scheme and a sum of money to cover funeral expenses in the event of their death.
Recently, there have been protests by workers regarding payouts at Swiggy, Zomato’s quick commerce service, and Urban Company, a home services provider backed by Accel Partner.
According to a recent survey on the condition of gig workers, including those employed by Swiggy and Zomato, delivery workers were found to be earning less each year and struggling to save money. The survey also revealed that approximately 47% of respondents lacked any form of insurance.
Mihir Shah, Head Of Operations at Swiggy, said, “Delivery partners are the backbone of our service. There is a common misconception that since they are not employees, they do not have access to healthcare support from Swiggy. For several years now, we have provided carefully considered insurance and other benefits to our delivery partners and their families. Swiggy remains committed to providing industry-best safety and well-being practices to our delivery partners.”
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