E-commerce firms breathe a sigh of relief as truck drivers call off strike

Truckers' strike: Parked trucks in Gurugram

Several e-commerce companies breathed a sigh of relief when the truck drivers' association called off its two-day long strike after meeting with Home Minister Amit Shah late evening on January 2.

The companies had already faced a delay in order deliveries and were sure that they would run a deeper risk of inventory mismanagement if the protest over the new hit-and-run rule continued any longer, industry executives told Moneycontrol.

As a result of the strikes, long queues of people were seen at various fuel stations across the country, especially in the northern and western regions, on January 2 as reports of the transporters’ strike and fuel shortage had created panic among people which had led to 2,000 petrol pumps running dry.

The new rule on negligent driving has not been implemented yet and the next step will only be taken after a discussion with All India Motor Transport Congress representatives, Union Home Secretary Ajay Bhalla said on January 2, after an increasing number of truck drivers joined the strike and protests had gathered steam and spread to several other cities.

Even as the strike was called off, several industry stakeholders feared that going back to normal would take time since these strikes, across regions had already resulted in supply chain disruptions in the e-commerce industry.

“The truck drivers we have tied up with had stopped while travelling and some others voluntarily joined the strikes, especially in Maharashtra and Punjab, which affected delivery timelines for us,” an executive at an e-commerce company told Moneycontrol.

"Now that the strike has been called off, we'll get an update tomorrow on what happens to the timelines but there have certainly been delays," the executive added.

Even other e-commerce companies witnessed a delay in shipments, especially to their central warehouses.

“Expect a 1-2 day delay in customer delivery as of now. Trucks were stuck since yesterday (January 1) in many states. The disruption is very real. And if the strike was not controlled immediately, it would have been severe – and then bringing it back into order takes a long time,” an executive at another e-commerce company told Moneycontrol when asked about the aftermath of such protests.

My Amazon order got delayed bec of the truck strike pic.twitter.com/fUg5rAoa00

— Tony Choprano (@David_Q_Gray) January 2, 2024

Hi team, my order is still in processing state, and delivery date is 6Jan, i think this is to come, plz don't excuse the truck strike.

— Kaplesh

Second order impact

As a result of the strike, long queues of people were seen at various fuel stations across the country on January 2 as reports of the transporters’ strike and fuel shortage created panic among people which led to 2,000 petrol pumps running dry.

The situation was so bad that local authorities curbed the amount of fuel bikes and cars could buy in certain regions. In Chandigarh, two-wheeler riders were told that they could only buy upto two litres of fuel, four-wheelers drivers were informed that they can only purchase upto five litres of fuel.

Long queues and other restrictions meant that hyperlocal delivery partners had to wait longer to fuel up which resulted in deliveries being delayed.

“Our last-mile delivery partners have also complained that they’ve been unable to get an adequate amount of petrol because of which delivery timelines have to be pushed out,” one of the executives quoted above said.

@deepigoyal it would be a shame if this delivery agent is not rewarded appropriately. Dude ditches his bike after the petrol fiasco due to truck drivers strike and instead delivers food on his horse. @zomato pic.twitter.com/Kut7sCu33b

— Syed Asrarullah (@asrartheone) January 2, 2024

@revanth_anumula sir
Due to this truck drivers strike and no availability of petrol for approx 3-4 days are going to affect food delivery boys & rapido drivers who are earning to serve their family on a daily basis.
Requesting you to please take immediate action.@asadowaisi

— SYED FAIZAN ALI (@__5zn) January 2, 2024

In Hyderabad, long queues were witnessed at several fuel pumps on Tuesday as people thronged them, fearing a shortage of fuel due to the protest by truck drivers.

K Suresh Kumar, general secretary of the Consortium of Indian Petroleum Dealers, told Moneycontrol, "We have received reports of multiple outlets in Hyderabad running out of stock. We have already appealed to the Oil Marketing Companies (OMCs) to devise a solution and ensure a continuous supply."

All India Motor Transport Congress chairman Bal Malkit Singh said that the strike was withdrawn on Tuesday (January 2) night following a meeting with senior officials from the Union Ministry. "We've received an assurance from the Union government that the 10-year jail term for hit-and-run cases would not be implemented without prior consultation with transporters"

"We made the decision to withdraw the strike around 10 pm on Tuesday (January 2), and drivers have since resumed their duties, with truck movements returning to normal. We want to reassure our driver community that we have received assurance from the Union government that Bharatiya Nyaya Sanhita 106(2) will be implemented only after discussions with us," he said

To be sure, the disruption has not spread out to all cities in the country. An executive from a company, whose business depends heavily on the availability of fuel, told Moneycontrol there have been no escalations from the delivery partners yet. “We’re, however, aware of the situation and are keeping a close eye on the developments, if we face issues, we’ll communicate to our stakeholders immediately,” the executive added.