Dear readers,
In a bid to conserve cash and cut ballooning losses, hyperlocal delivery companies are passing on additional delivery charges to customers.
Doorstep delivery gets costlier
Micro-delivery firms MilkBasket and Supr Daily have started levying a packaging charge and service fee. The move has been driven in part by increased investment to maintain hygiene and safety, extra pay to delivery executives, and to stay afloat amid a tough fundraising environment. Dunzo and Swiggy’s Genie too have hiked delivery fee for their concierge services.
That comes as average wages of delivery executives rose to Rs 30,000 per month from Rs 15,000-20,000 prior to the lockdown, as companies incentivised workers to get back amid an acute labour shortage. The higher wages have increased cash burn for hyperlocal delivery players, which get wafer-thin to no margins from local stores and retailers. Read more.
Direct-to-home
More than a dozen consumer goods companies have started selling products directly to consumers, circumventing traditional trade and distributor networks in areas where last-mile delivery has been disrupted due to Covid-19 restrictions.
The latest direct-to-home initiative involves companies like Hindustan Unilever, ITC, Mondelez, Procter & Gamble, Dabur and Colgate partnering with startups such as Dunzo, Scootsy and Swiggy by listing brand stores on their portals. Fast-moving consumer goods firms have set up storefronts on hyperlocal delivery platforms. More here.
AIFs seek clarity
India’s alternative investment funds (AIFs) are seeking greater clarity from the government on recently announced tweaks to the FDI norms, which require prior approval for all investments from China — the largest backer of the country’s startup ecosystem.
Investors are concerned about whether government nod will be required to drawdown capital from their Chinese or Chinese-origin limited partners (LPs), for placing fresh bets or making follow-on investments in select portfolio companies.
AIFs — defined as Sebi-registered funds established or incorporated in India — are privately pooled investment vehicles that collect funds from investors, both Indian and foreign. There are an estimated 650 funds, trusts and LLPs on Sebi’s website, including prominent ones such as IndiaQuotient and Kae Capital, which count Chinese investors as their LPs. Read more.
Snapchat’s India bet
Snapchat’s parent Snap Inc. is intensifying efforts to evolve its messaging service specifically for India, after witnessing a rapid growth in the country.
In an earnings call last week, its chief executive Evan Spiegel said, “(India) is definitely a market we’re really excited about and investing a lot into. One of the things that we’ve seen really work well there has been releasing custom and culturally relevant augmented reality experiences and increasingly more content.”
Snap has lately been focusing on India, after ignoring the country in its earlier years. Read more.
WhatsApp catches up with Zoom
The Mark Zuckerberg-owned messaging service is doubling the number of participants on a WhatsApp video or voice call from 4 to 8 people at a time. The move comes after videoconferencing app Zoom has caught on with users across the globe.
WhatsApp said over the last month, people on average are spending over 15 billion minutes talking each day on WhatsApp calls which is well above any typical day before the pandemic. It has over 400 million users in India. Read more.
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