India’s coronavirus shutdown is disturbing the growth of e-commerce companies, including Amazon and Flipkart, despite the fact that the government assures it would not, four sources familiar with the matter told news services. Different states and districts relating to the 21-day shutdown, which began on Wednesday, are hindering operations, the sources said on Friday.
The losses highlight the difficulties of ensuring the supply of ordered goods to 1.3 billion people during the lockdown in India, which has so far reported 725 cases of coronavirus and 18 deaths.
Most of Amazon’s 70 plus fulfillment centers in India are locked down, and the U.S. Company is making decisions with state officials to try to open them again, four of the news services said.
Industry officials say local authorities have not followed the rules and regulations, stoppage of deliveries, and warehouses from functioning.
“It’s worse than one can think,” one news service said. In contrast, a second source said that only a “minute” number of Amazon businesses were functioning, adding to the point that this as a critical reason for troublesome activities.
Even when functions begin to operate like usual, it will only happen in capital cities, the news service said.
Amazon claimed in one of their statement that their first priority was to supply the goods and services which consumers need the most, and it was seeking urgent help from the federal government and local authorities with detailed on-the-ground operating procedures.
Amazon’s Pantry service was shut down from activating, and the supply slot for essential goods, such as oil and soaps and other basic needs, was shown as being April 26, in New Delhi.
“There are clear rules and regulations provided by the federal government to enable particular goods and services, and so we are operating with the respective authorities to assure we are able to function,” Amazon said on Twitter in response to queries from users in India.
Indian trade minister Piyush Goyal held a meeting with e-commerce executives and experts on Thursday and said the federal government was “committed to assuring those essential goods reach the people.”
Walmart-owned Flipkart has also been hit with the side effects of the pandemic, with some grocery items which had been available intermittently going out of stock earlier on Friday in New Delhi.
A news report familiar with the situation said Flipkart was facing disruptions with last-minute delivery of goods once they leave its warehouse. They were not able to deliver to the consumers due to restrictions on movement.
Flipkart said in a statement it had started grocery operations, and there was a significant spike in receiving orders from the consumers.
“We are improving the capacity to meet the increase in consumer needs,” the news source said, adding it had received support from local and federal officials.
This enormous, massive lockdown has undoubtedly affected the capital growth and the monthly revenue of the E-Business. It will thus take time to recover after the 21 days of lockdown. Amazon and Flipkart are not only facing many disruptions but also remain shut until the end of the entire pandemic.