Customers awaiting delivery of online orders, including essential items, will have to wait longer as e-commerce services have been disrupted across the country. These platforms are now seeing a backlog of lakhs of unfulfilled orders, including for groceries.
E-commerce companies such as Flipkart have suspended services, and grocery platform BigBasket said it is not operational in many cities due to restrictions from local authorities.
This is despite the central government telling states to allow e-commerce operations to run even during a lockdown. The Home Ministry in its guidelines for the 21-day nationwide lockdown has cited ecommerce for essential products to be exempted.
DPIIT secretary Guruprasad Mohapatra told CNBC-TV 18 that they have informed states that personnel doing home deliveries, especially of food and medicines should be allowed.
"We are sensitising states that supply lines need to be operational with resort to food and pharma. For e-commerce and organised retail I have requested companies to share list of personnel with state governments," he said.
E-commerce giant Flipkart informed customers on Wednesday that it has suspended services temporarily.
Sources say Flipkart may resume deliveries of essential products soon if they get clearance from states for their delivery partners to work.
“Flipkart has temporarily suspended orders as we assess the possibilities of operating in the lockdown. We are prioritising the safety of our delivery executives and seeking the support of the local governments and police authorities to meet the needs of our customers as they stay home during this lockdown,” said Rajneesh Kumar, Chief Corporate Affairs Officer, Flipkart
This comes after Amazon said on Tuesday it will not take any new orders for non-essential items. It will only deliver high-priority products such as household staples, packaged food and hygiene products.
BigBasket tweeted today that it was working with authorities to be operational soon.
“We regret the inconvenience caused, we are not operation due to restrictions from local authorities on movement of goods in spite of clear guidelines provided by central authorities to enable essential services. We are working with the authorities to be back soon,” the company said.
Grofers too has been hit and is able to only work at limited capacity. The backlog of orders on the platform has grown to over 2.5 lakhs.
NITI Aayog CEO Amitabh Kant told CNBC-TV18, "Immediate action was taken to make Grofers warehouse functional. We will ensure all essential items reach every Indian."
He said that measures were being taken to ensure smooth inter-state transportation. "We are working closely with all states government, and will ensure supply chains remain intact ," he said.
Authorities act against e-commerce
E-commerce operations are grinding to a near-halt in locked down areas, as per industry members, who say the police and local authorities have been forcing shutdowns of warehouses, stopping delivery partners and even roughing them up. In fact, in some areas such as Haryana, delivery personnel were also allegedly arrested for breaking the curfew. What is also hurting operations is that the movement of trucks with essentials is also being stopped at several borders, given that several states have sealed borders.
Companies forced to scale down ops
E-commerce companies say delivery personnel are now scared, and are not turning up for deliveries.
Seller associations such as AIOVA are also asking members to shut operations voluntarily.
The chaos on the ground ensues despite communication from the Consumer Affairs department last week to states asking them to exempt e-commerce operations from prohibitory orders, which includes warehousing, logistics, wholesalers, vendors and delivery partners.
Following a meeting with ecommerce companies again on Monday, the department asked nodal officers in states to work with and resolve issues for ecommerce companies.
On Tuesday, the central government, said in its advisory to states, to permit IT and ITeS services to be exempted from lockdowns. It also said that states should allow e-commerce services on basis of evidence of order copies, invoices etc.
The Home Ministry in its guidelines for the 21-day nationwide lockdown also listed e-commerce for essential services to be exempted.
