Gurugram unrest disrupts operations of e-commerce, food delivery startups

Violence broke out in parts of Haryana

The violence in parts of Haryana that started in Nuh and caused the death of six people spread to Gurugram on August 1, affecting operations of numerous e-commerce majors and food delivery startups. As the unrest continues to unfold, various technology companies and multinational corporations have taken precautionary measures, urging their employees to work remotely unless otherwise required.

Gurugram District Magistrate and Deputy Commissioner Nishant Yadav has maintained that things are normal in most parts of the city, with educational institutions being closed in Sohna on August 2.  “In order to avoid any untoward incident and ensure the safety of the students, it is deemed necessary to close all Government and private educational institutions in the Sohna Sub-division of District Gurugram on 2nd August, 2023, in view of the prevailing circumstances,” an order by the District Magistrate’s office read.

Most IT companies have maintained that they follow a hybrid mode of working, so employees can work from home. While no advisories have been sent out, team managers are advising employees to stay home. On August 1, firms also sent employees who came into the office back home as a precautionary measure.

Both food delivery and e-commerce have been impacted — with either a dip in demand or shipments being delayed.

"Although only certain areas like IMT Manesar and Sohna have gone off the delivery grid for now, other areas of Gurugram are also facing ETA problems. This is because many delivery workers are scared and not turning up. We are hearing from the ground that this will continue to be the case on Wednesday as well," said a senior e-commerce executive who did not want to be named told Moneycontrol.

The executive said that while there has been no communication about pausing deliveries, delivery workers are being questioned at checkpoints about their destinations and reasons for travel.

On July 31, Yadav had imposed Section 144 in Gurugram district, and stated that the order will be in force till further notice. “Unlawful activities, road blockades, and assembly of 5+ persons with weapons prohibited to maintain peace & tranquility. Order in force till further notice,” a tweet from the Deputy Commissioner read.

Executives at a second e-commerce company said the situation on the ground is prohibiting several partners from moving around to complete deliveries. Additionally, they said that the internet shutdown in parts of Haryana is also impacting overall app usage and order tracking.

“There’s also a second order impact wherein our sorting centres in Haryana can no longer dispatch parcels to other smaller warehouses in regions that are close by because trucks aren’t allowed to move around freely right now. Not just parcels that are outbound (from Haryana), but even trucks that are supposed to be reaching Haryana from Delhi and surrounding areas are being delayed by a day or two. The issues mainly started second half today and we spent the day assessing what’s next but we’re going to prompt customers, if possible, about delayed deliveries,” an executive at a large e-commerce company said.

The situation on the ground has also spooked delivery workers, who are choosing to stay away from work as they are scared for their safety.

"We are being extremely cautious about the well being of our customers and delivery workers in this situation. Although there has been no official ask to suspend deliveries, we are looking to lie low and err on the side of caution at this point of time," a third e-commerce executive.

Gurugram-headquartered Zomato said it is extending support to on-ground workers during this time.

"We are following and will continue to follow the government issued guidelines. Additionally, for the wellbeing of our delivery partners, we have an SOS feature on their app, which can be leveraged for emergency support (including ambulance support)," a company spokesperson said.

Quick commerce platform Zepto said it is complying with state safety guidelines and additional transportation support is being extended to its workforce. “We continue to see a growing demand in Gurugram, given that the residents of the city are resorting to be in the safety and comforts of their home. We have been able to manage this demand and the safety of all, our riders, store staff and customers alike, with better preparedness,” a statement from the company said.