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Covid-19: Orders on Zomato, Swiggy go down by 60%

, ET Bureau|
Last Updated: Mar 26, 2020, 10.32 AM IST
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The food delivery businesses are also facing challenges on the ground from local authorities and policemen who do not consider them as "essentials."

Highlights

  • The businesses are facing challenges from local authorities and police who do not consider it "essentials."?
  • Restaurants are shutting down due to shortage of manpower and fresh supplies.
  • 95% of restaurants nationally have gone offline.

BENGALURU: Online food delivery startups Swiggy and Zomato are working with minimal delivery partners and limited restaurant partners in several states as riders and kitchen staff have refused to step out fearing police harassment amid the lockdown.

Kitchens have also started facing issues with procuring supplies to run operations, further pressuring them to shut shop.

More than 95% of restaurants nationally are offline, according to the National Restaurant Association of India. “Manpower can’t be risked and supply is still not very smooth,” Anurag Katriar, president of NRAI, told ET. “Virtually everything is shut.”

Orders on food delivery platforms Zomato and Swiggy are down by at least 60% across cities.

“There has been a short-term impact in terms of softening in volumes which can be attributed to the shortage of supply due to temporary closure of many highvolume restaurants located in malls and disruptions on-ground across certain states,” a Swiggy spokesperson said on Tuesday evening.

The food delivery businesses are also facing challenges on the ground from local authorities and policemen who do not consider them as "essentials."

Zomato said it has been operating at 30% delivery capacity. The company has also been facing issues across cities while delivering food despite being classified as an essential service. “We are actively working with the authorities to clear the confusion so that essential services can operate without trouble,” said Deepinder Goyal, CEO, Zomato.

Over the last few days, several pockets of Mumbai, Gurgaon and Ahmedabad saw food deliveries drop to zero with restrictions on movement of people as well as the closure of most restaurants.

Restaurant operators told ET that they have been forced to shut down due to shortage of manpower and fresh supplies. “We decided to shut our kitchens last week,” said Karan Tanna, operator of Ghost Kitchens.

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