Moneycontrol
Jan 08, 2017 03:43 PM IST IST | Source: Moneycontrol.com

How Uber and Foodpanda gained due to demonetisation

While startups saw a surge in online ordering of food, medicines, groceries and booking cabs, online retailing of electronics and fashion apparel nosedived.


Moneycontrol Bureau


On November 8, 2016, PM Narendra Modi announced that 86 percent of the currency in circulation in India i.e. Rs 500 and Rs 1,000 notes will no longer be legal tenders. The move was aimed to curb corruption and black money, primarily.


The move had a big impact on spending pattern of Indian consumers and e-commerce businesses. Overnight companies stopped cash on delivery which formed 85 percent of their orders, which was later resumed. The companies also stopped accepting cash in old high currency notes, which led to lot of order cancellations.


While startups saw a surge in online ordering of food, medicines, groceries and booking cabs, online retailing of electronics and fashion apparel nosedived.


As report by cashback site CouponDunia highlights how top e-commerce brands and metro cities were impacted. As per the report, Snapdeal and Flipkart were the most impacted in terms of traffic followed by Shopclues and Tata Cliq.

Traffic from small cities to online retail firms went down drastically. On the other hand, apps like Foodpanda saw over 10,000 new users. Companies such as Uber also gained as people started taking more cabs to avoid shelling out currency notes for public or private transport. Online grocers and food ordering sites gained as they accept digital cash. Here is the infographic with more details:

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