Food tech giants Swiggy and Zomato are facing a shortage of delivery executive amid a number of reasons, which is in turn affecting their services, a report said on Wednesday. Bengaluru-based Swiggy is already in the process of suspending its daily essentials and grocery service Supr Daily, across major metro cities, and has temporarily made unavailabe its ‘Genie’ services. As per the report, the shortage of delivery executive is causing service delays in several areas, and may hurt ordering numbers by the customers in these regions — thereby hurting the business as a whole.
As per a report by CNBC TV18, openings in quick commerce, mobility has weaned away food delivery executives in both Swiggy and Zomato. On top of this, the recent heatwaves and high temperatures, as well as rains have also impacted attendance of delivery executives.
Trouble at Swiggy
According to a report by CNBC TV18, many customers are facing delays in the delivery of their orders due to the shortage of staff. Swiggy has temporarily suspended its ‘Genie’ services in Mumbai, Hyderabad, Bengaluru, reasoning that the surge in demand during IPL (Indian Premiere League) season. Genie services are in force in 65 out of 68 cities right now. “The cricketing and festive season has resulted in a surge in demand for servicing the requirements for both the food marketplace and Instamart, requiring us to prioritise these deliveries accordingly. We hope to resume Swiggy Genie in the impacted cities soon,” said Swiggy in a statement.
The food tech giant has also announced that it will suspend its grocery and daily essentials delivery service, Supr Daily across Delhi-NCR, Mumbai, Hyderabad, Business Today said in another report. “As a part of the restructuring, Supr Daily will suspend operations in Delhi-NCR, Mumbai, Pune, Hyderabad and Chennai. We have a detailed transition and closure plan in place to make it less painful for our users as well as brand and vendor partners. We will continue to serve users in Bangalore and double down on our efforts here,” Supr Daily CEO Phani Kishan said in a blog post on Tuesday.
What’s Cooking at Zomato?
As per CNBC TV18, Zomato is in the process of “transitioning into a slot-based delivery model where delivery executives will be allowed to log in for 4-hour slots”. If delivery executives pick a second such slot, the app will give preference to executives who are logging in for the first time in the day. However, some of the partners are not particularly happy at the model, which is aimed to take off the workload. According to them, this puts a limit to the number of deliveries they make, which in turn will impact their earnings.
The hot weather and ever-rising fuel costs are also pushing away Zomato and Swiggy delivery executives from staying in the job. The only way to stop this, as per industry experts, is better pay incentives that make the work sustainable.
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