Lockdown confusion after e-commerce firms face police harassment

Police check motorists at a checkpoint during a government-imposed nationwide lockdown as a preventive measure against the COVID-19 coronavirus in New Delhi on March 26, 2020. (AFP)
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Updated 29 March 2020
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Lockdown confusion after e-commerce firms face police harassment

  • India has more than 15 major food delivery unicorn startups in India, with Swiggy and Zomato sharing the bulk of orders in major urban centers

NEW DELHI: It has been more than four days since New Delhi resident Shubha Prasad has been able to dine on his favorite biryani.

None of the food delivery apps that he usually orders from has been working since Wednesday when India announced a 21-day lockdown to counter the spread of coronavirus in the country.

“I stay alone in the rented apartment, and food delivery websites are a lifeline for me,” Prasad, an engineering graduate, told Arab News on Saturday.

The 24-year-old joins thousands across the country whose life has come to a standstill following the imposition of the curfew.

With a restriction on movement, authorities are encouraging people to stay at home to contain the spread of the virus. However, it means that those who rely on delivery services for food and grocery options are left in the lurch.

At the time of the lockdown, the government said that essential services would not be disrupted and restaurants would remain open for takeaway or delivery.

However, companies offering food and grocery deliveries now say they are struggling to stay afloat.

“We are operating only in 15 percent of the 500 cities where we were present,” said Vivek Sunder, chief operating officer of Swiggy, one of India’s largest online delivery platforms.

“There are still lots of disruptions. We are not operating in most of the cities because only 20 percent of restaurants are operating.”

India has more than 15 major food delivery unicorn startups in India, with Swiggy and Zomato sharing the bulk of orders in major urban centers.

According to market research firm Unomer, the Zomato app is installed in 12 percent of all Indian smartphones, compared with Swiggy, which is at 10 percent and enjoys a presence in more than 500 cities.

However, following the lockdown, both apps are finding it difficult to operate business as usual.

Media reports at the weekend suggested that several unicorn startups had been asked by some state governments, such as Tamil Nadu, Uttar Pradesh, Gujarat, Goa, Chhattisgarh, Bihar, Assam and Pondicherry, to suspend operations.

Those that are open said their delivery staff are being harassed and questioned by police for continuing their services during a lockdown.

Trucks carrying essential items are also barred from movement, making it tough for e-commerce startups, such as Amazon and Flipkart, to continue services.

Amazon said that the administrative confusion is causing problems, and varying guidelines by state governments are adding to the difficulties.

“We are asking both the central government and local authorities to help us with detailed on-ground operating procedures to ensure priority goods are delivered across the country without any disruption,” an Amazon spokesperson told Arab News on Saturday.

“We have made several changes to our delivery process and rolled out new processes to ensure that packages are delivered to customers safely,” he added.

Sunder said that Swiggy is also planning to start grocery deliveries in 150 major cities if it faces no disruptions in the supply chain because 85 percent of its staff are lying idle.

Zomato also claimed that lack of government clarity is causing disruption for its business.

“Our delivery partners are facing several hurdles across cities while trying to deliver food that has been classified as an essential service. We are communicating with the relevant authorities and hoping these issues are sorted out soon,” a spokesperson told Arab News on Saturday.

Deepender Goyal, Zomato’s founder, said on Wednesday that hundreds of the firm’s employees “have taken deep salary cuts.”

“To conserve our cash flow hundreds of Zomato employees have taken deep voluntary salary cuts,” he tweeted, adding that the firm is working with local authorities to make the e-commerce outlet work.

“The next immediate problem is to solve the restaurant and cloud kitchen availability. We need to ensure that kitchens stay open during these times so that we can help with food delivery as much as possible,” he said.

More than 18,000 employees working for Zomato and Swiggy are also facing uncertain times.

“We don’t know how many months this lockdown will last. The economy is going to shrink further. If I sit idle for three months, how will I feed the family?” asked Pawan Kumar, a Patna-based Zomato employee.

“The lockdown has affected lots of businesses, including food and beverage. Although the government offered exemption to essential services, the story at ground level is different. I am sure things will improve in coming days, but it’s terrible at the moment,” Bhanu Rohila, of Biryani by Kilo, a popular online food delivery app in New Delhi, told Arab News.

Experts agree, with Prof. Arun Kumar, of New Delhi-based Jawaharlal University, saying that the lockdown is “going to affect unorganized sectors the most.”

“It’s a case where you have 94 percent of the employment and 45 percent of the output, ” he said.


South Africa defends naval drills with Iran, Russia as ‘essential’

Updated 4 sec ago
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South Africa defends naval drills with Iran, Russia as ‘essential’

  • The drills — led by China — were more than a military exercise, Captain Thamaha said
  • “It is a demonstration of our collective resolve to work together“

SIMON’S TOWN, South Africa: South Africa on Saturday began naval drills with Russia, Iran and China, describing the maneuvers off its coast as not merely a show of force but a vital response to rising maritime tensions.
The weeklong ‘Will for Peace 2026’ exercises come just days after the United States seized a Russian-flagged oil tanker in the North Atlantic, saying it carried crude bound for Venezuela, Russia and Iran in violation of Western sanctions.
The seizure followed an American raid that toppled Moscow’s ally Nicolas Maduro in Caracas.
The drills — led by China — were more than a military exercise and a statement of intent among the BRICS group of emerging nations, Captain Nndwakhulu Thomas Thamaha, South Africa’s joint taskforce commander, told the opening Ceremony.
“It is a demonstration of our collective resolve to work together,” he said.
BRICS, originally made up of Brazil, Russia, India, China and South Africa, has expanded to include Egypt, Ethiopia, Iran, Saudi Arabia, the United Arab Emirates and, more recently, Indonesia.
China and Iran deployed destroyer warships, while Russia and the United Arab Emirates sent corvette vessels. Host South Africa dispatched a frigate.
Indonesia, Ethiopia and Brazil joined as observers.
“In an increasingly complex maritime environment, cooperation such as this is not an option, it is essential,” said Thamaha.
The exercises were to “ensure the safety of shipping lanes and maritime economic activities,” he said.
Previously known as Exercise Mosi, the drills were initially scheduled for last November but postponed due to a clash with the G20 summit in Johannesburg, boycotted by the United States.
Washington has accused South Africa and the BRICS bloc of ‘anti?American’ policies and warned members they could face an additional 10 percent tariff on top of existing duties already applied worldwide.
South Africa has also drawn US criticism for its close ties with Russia and a range of other policies, including its decision to bring a genocide case against Washington ally Israel at the International Court of Justice over the Gaza war.
South Africa drew criticism for hosting naval drills with Russia and China in 2023, coinciding with the first anniversary of Moscow’s invasion of Ukraine.
The three nations first conducted joint naval drills in 2019.