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Zomato and Swiggy have started bearing the brunt of lockdown now. Both the platforms witnessed a sharp decline in the orders immediately after the lockdown. According to the reports, the food delivery orders for Zomato and Swiggy have dropped 70% amid the pandemic.
Most of the restaurants are shut, and people have stopped ordering food from outside during the lockdown.
“From a steady state of 2.5 million deliveries a day, today we are at sub 1 million orders which are marginally inching up,” said an investor in the food delivery space to ET.
The platforms are facing some difficulties in delivering the orders in some parts due to certain confusions. The RWA’s and resident’s associations have also banned the entries of food delivery boys in many locations. Zomato and Swiggy are also in touch with the authorities to sort out some issues which can make the deliveries smooth in the coming days.
COVID-19 - Restaurant Industry severely impacted
The food delivery platforms like Zomato and Swiggy are open, but there is a shortage of delivery boys and restaurant partners. Restaurants have to step back, and because of very limited or no orders, they are finding it difficult to sustain. The Curfew like situation and fear have prompted people to spend less. The food orders from customers have almost dried up, and as a result, most of the restaurants have shut shop in India.
There are only 5-6 restaurant chains in India having enough cash reserves to sustain for more than a month. One of them is Dominos, which is still operational and serving their customers. However, there is a need for a bailout package from the government if there is no improvement after May
Zomato raises $5M from Baillie Gifford affiliate fund
Amid the slowdown, there was some good news as well. Zomato has raised close to $5 million (Rs 38.20 crore) from Pacific Horizon Investment Trust, a fund managed by British investment manager Baillie Gifford. The same investment management firm had earlier invested in Flipkart and homegrown ride-hailing major Ola.
Marico Partners with Zomato and Swiggy to Deliver FMCG products
Since Zomato and Swiggy have a well-organized delivery infrastructure, they have shown their interest to deliver groceries and other essential items. Grofer’s has already taken the lead and is delivering groceries from kirana stores after partnering with Punjab government.
Marico Ltd has come up for the rescue of Zomato and Swiggy. Mumbai-based packaged consumer goods company has launched “Saffola Store" in partnership with online food ordering apps Zomato and Swiggy. Under this partnership, these platforms will deliver its range of oats and cooking oils to consumers.
On the Zomato app, there is going to be an option of Saffola Store. The service in Delhi-NCR area and Bangalore is already operational. Marico is planning to roll out this service very soon in other cities such as Mumbai, Kolkata, Chandigarh and Ahmedabad.
On Swiggy, you will find the services of Saffola Store in Gurgaon, Delhi NCR, Bangalore, and Mumbai.
Prime Minister Narendra Modi, while addressing the nation on April 14, 2020, announced the extension of the nationwide lockdown till May 3. The government is preparing new guidelines, which will be shared with the general public on 15th April. PM Modi hinted that there would be more strictness this time and requested people to follow the lockdown guidelines to prevent the further spread of COVID-19. The Administration will keep an eye on the situation till April 20 on the COVID-19 outbreak. However, if in some areas where no COVID-19 cases are reported, the government could give some conditional relaxations.
Narendra Modi said that this is not the right time to compare our efforts with other nations, but it was fast-action by the government and early lockdown that has helped India to spread Corona. As a result, India has done much better than the developed nations.
He even raised his concern about the daily wagers and farmers who have suffered a lot due to the lockdown. His government is committed to helping this section of society and will announce further measures and relief for them.
In an emotional appeal to the nation, Modi requested the citizens to follow seven steps amid Lockdown 2.0. PM's 7 Pointers Appeal to the Citizens:
1. Every citizen should take proper care of the senior citizens in the house. Particular attention should be given to those who are ill and are already suffering from underlying problems.
2. PM requested people to follow social distancing and emphasized on wearing masks, particularly homemade masks or face covers.
3. Modi asked people to follow the directions of the Ayush Ministry and try to increase their immunity. They can drink warm water or homemade Kaadha (Brew).
4. PM requested to download the Aarogya Setu application mobile application developed by the Government of India to connect essential health services with the people of India in our combined fight against COVID-19. People should also ask their friends and relatives to download the app.
5. At this hour of crisis, people should help the needy and low-income families wherever possible.
6. Modi also asked the businessmen to be sensitive towards their employees and coworkers and requested them not to downsize the employees.
7. Last but not least, Modi applauded the efforts of the Coronavirus 'soldiers'. He asked the entire nation to respect doctors, nurses, sanitation workers, Police and all others who are serving us during the Corona crisis.
We, at The Brand Global, will constantly keep you updated with the latest COVID- 19 updates. Do share your thoughts on the extension of the Coronavirus Lockdown 2.0.
Lockdown is extended till May 17th now. This is the third time the lockdown has been extended to control the spread of Corona.
Prime Minister Narendra Modi, in a televised address to the nation on April 14, 2020, announced the extension of the nationwide Lockdown till May 3. However, he also mentioned that the government will ease lockdown on certain sections of the economy from 20th April, owing to the plight of daily workers and farmers. On April 15, 2020, the central ministry issued a list of economic activities which would be permitted to operate, with some conditions.
The following list contains the economic activities which is approved by the Ministry of Home Affairs to be operational after April 14:
Supply Chain and Logistic Activities:
There will be no restrictions on the transportation of essential goods. All goods carriers including trucks, goods and parcel trains, and air cargo movement will be allowed in the lockdown. On the highways, the 'dhabas', and truck repairing shops shall remain open.
a. Farming - There would be no restriction on any agricultural and horticultural activity during the lockdown. The farmers can continue their farming operations and farm works in the field. All the agencies engaged in the procurement of agriculture products, including MSP operations, are also exempted.
b. Fisheries - Aquaculture industry is also exempted during lockdown. The farmers can continue with feeding and maintenance, harvesting, processing, packaging, cold chain, sale and marketing and other fishing operations.
c. Plantation - Operations can be resumed at tea, coffee and rubber plantations with a limited number of employees (maximum 50% of workers).
d. Animal Husbandry - All operations related to animal husbandry are exempted during the lockdown. The collection of milk by dairy plants from the producers, its distribution, transportation and sale will be exempted. Animal feed manufacturing units and its distribution will also get relief.
3. Commercial Activities
The industries functioning in rural areaswill be allowed to operate from April 30, but they need to follow the social distancing norms.
MNREGA, the rural employment generation scheme, will commence and works to be allowed with strict implementation of social distancing and use of face masks. Work related to irrigation and water conservation shall get priority.
The government has allowed the Manufacturing units and industries functioning from Special Economic Zones (SEZs) to operate during the lockdown. The firms can start operations after April 20 only if they arrange the stay and transport of its employees.
Pharmaceutical manufacturers and the units manufacturing essential goods have been allowed to operate.
From April 20, shops of farm machinery, its spare parts, supply chain, repairs, 'Custom Hiring Centres' related to machinery will remain open.
Besides, the call centers for government activities will also resume services.
Essential good stores like grocery stores, fruit, vegetable shops or carts, and milk booths, poultry, meat, and fish shops will also remain open during lockdown. Self-employed electricians, IT repairs, plumbers, motor mechanics and carpenters can start giving their services from April 20
Banks and ATMs, IT vendors for banking operations, banking correspondents, ATM operation, and cash management agencies to remain functional during the lockdown.
The exempted organizations need toconduct screening of all employees. They need to maintain proper social distancing by allowing the staff to work in shifts and giving staggered lunch breaks. Also, it is mandatory for workplaces to display the list of all hospitals and medical facilities dealing with COVID-19.
No Exemptions till May 3
The activities which are still ban till 3rd May 2020:
Schools, colleges, and other educational and training institutions shall remain closed.
Cab aggregators like Ola and Uber, other taxis, autos, and cycle rickshaws cannot operate
All malls, cinema halls, markets, shopping/sports complexes, swimming pools, gyms, theatres, and bars shall remain prohibited.
Train services and all international, domestic flights remain suspended
No social, political, sports, religious functions, will be allowed during the lockdown.
The holy places, places of worship shall remain closed to the public.
The number of coronavirus cases in India crossed 12,000 as of April 16, 2020. The lockdown 2.0 aims to contain the spread of COVID-19. Hence the following steps are being implement to control the further spread of the virus:
Wearing face cover is compulsory in all public places and workplaces.
A complete ban on the sale of tobacco, gutka, and liquor.
Spitting in public places shall be punishable with fine.
Gatherings during the funerals and marriages will be monitored and regulated by the District Magistrate.
