Why Online Grocery Delivery Services Struggled During Lockdown Periods in India: Lessons Learned

Online grocery delivery services in India, such as Big Basket and Grofers, faced significant challenges during the initial lockdown period and persisted during the partial lockdowns of the second wave of the COVID-19 pandemic. This article delves into the reasons behind these failures, including market preferences, supply chain disruptions, public behavior, and policy shortcomings.

Market Preferences and Limited Preparedness

A key factor in the failure of online grocery delivery services was the dominance of traditional brick-and-mortar shops. In India, a majority of consumers still prefer shopping from local stores or preferred wholesale grocers in their neighborhoods. This preference was further entrenched during the lockdown, when many turned to online shopping abruptly. However, online grocers were not adequately prepared for the massive surge in demand.

These services lacked the necessary manpower, delivery vehicles, and inventory to handle such steep demand. Despite the growing popularity of online shopping, many providers failed to expand their capacity or optimize their logistics infrastructure. As a result, customers faced long wait times, delivery delays, and stock shortages.

Supply Chain Disruptions

The sudden onset of the lockdown led to a complete disruption of supply chains for various products. Production came to a halt in numerous factories, border closures affected the import of goods, and labor shortages plagued supply chains. Local vendors also engaged in hoarding, exacerbating the shortage of essential supplies. These disruptions made it nearly impossible for online grocers to fulfill all orders, leading to frustration among customers.

Public Behavior and Bulk Purchasing

Another significant factor was the public behavior during the lockdown. History has shown that during times of uncertainty, consumers tend to hoard goods, even when they are unnecessary. As lockdown announcements were made, people rushed to nearby shops to acquisition goods they believed would soon become scarce. This behavior was replicated in the online space, with households ordering bulk quantities of groceries. For example, families that typically consume 10 kg of flour per month may have ordered 15-20 kg in a single order. This bulk purchasing strained already disrupted supply chains, resulting in fewer deliveries and increased frustration among customers.

Uncertainty and Safety Concerns

During the initial lockdown, the fear of contracting the virus was palpable, affecting not only consumers but also delivery agents. Many delivery agents were either ill or reluctant to work, leading to a significant drop in delivery capacity. Additionally, those who did continue working had to adapt to new safety protocols, further complicating the delivery process. These were challenging times for everyone involved in the supply chain.

The Second Wave and Learning from Past Mistakes

For the second wave, many online grocery delivery services failed to learn from past experiences. Unlike various government bodies, they did not make appropriate arrangements to handle any astronomical surge caused by a renewed wave of the pandemic. This lack of preparedness compounded the existing challenges, leading to even greater difficulties for consumers.

Despite these challenges, the experience has provided valuable insights for online grocery delivery services and other businesses in similar sectors. Understanding consumer preferences, improving supply chain resilience, and enhancing safety protocols are crucial steps towards mitigating future disruptions.

In conclusion, the failures of online grocery delivery services during the lockdown periods in India highlight the need for better preparedness, adaptability, and collaboration between businesses and government authorities. As the demand for online services continues to grow, these lessons learned will be instrumental in ensuring smoother and more reliable delivery experiences for customers in the future.