Heatwave Triggers Delivery Partner Shortage at Quick Commerce Firms

The quick commerce industry is facing a shortage of delivery partners amid intense heatwaves, prompting companies to roll out incentives to keep them on the road during the peak heat hours amid rising demand for summer essentials, industry executives said.

Companies are offering Rs 8-15 per delivery on top of Rs 20-30 riders earn on average during afternoon hours, an executive said. While many riders have returned to their hometowns for election and the harvest season, "those remaining in metros prefer not to work in the afternoon due to the heat," he added.

Balasubramanian A, senior VP at staffing firm TeamLease, said demand for riders during summer increases by 15-20% typically. "Unlike last year when there was unseasonal rainfall in various parts of the country, this year the heat is on. To ensure riders are available, there are specific incentives tied to delivering in the middle of the day when it's at its hottest," he said.

On April 25, the Indian Federation of App-Based Transport Workers (IFAT) wrote to the labour and employment ministry, urging the government to mandate heatwave protection for gig workers under the Code on Social Security, 2020.

Responding to ET's queries, an Amazon spokesperson said the platform has advanced heat-index monitoring systems, structured breaks, job rotations, hydration guidelines and electrolyte supplements for its delivery partners. A Flipkart Minutes spokesperson said they have given their riders doctor access for any heat-related health advice among other things. Bigbasket also said they are providing resting facilities, incentives and more for worker safety. Eternal and Instamart did not respond to ET's queries until press time on Tuesday.

Supply and demand match

A Bengaluru-based quick commerce executive said the company is expanding its refrigerator and cold storage capacity to meet consumer demand. Companies like Amazon Now placed orders for additional fridges and coolers for their dark stores, according to a person in the know.

As demand for summer essentials picks up, platforms like Zepto, Flipkart Minutes and Instamart have created a separate segment on the app for products like ice-cream and beverages in the food segments, summer clothes in the fashion segment, and appliances like fans and juicers.

Brands in the cold items and beverage segment told ET that supply chain management in their factories remains tricky due to surging demand. "Due to significantly higher temperature spikes even in March and April, we are seeing demand surge two to three times higher than initially planned for the summer season," said Kiran Shah, founder of ice cream brand Go Zero.

Saurabh Munjal, cofounder and CEO of Archian Foods, the maker of Lahori Zeera, said, "A few consecutive days of heat lead to an immediate spike in demand, with consumption picking up much faster than expected."

Ice-cream brand Hocco and fresh juice brand Pluckk said they have strengthened their production capacity, warehouse requirements and cold storage facilities months ahead to manage the supply chain when demand spikes during heatwave.