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Zomato, Swiggy ordered to shut down in several states despite centre’s intervention

Last updated on March 27, 2020


Online meals supply platforms Zomato and Swiggy have been ordered to shut down in several states in the course of the 21-day lockdown despite the union authorities’s pointers categorizing meals supply underneath important companies.
Tamil Nadu and components of Punjab, Uttar Pradesh, Gujarat, Goa, Chhattisgarh, Bihar, Assam, and Pondicherry haven’t allowed meals supply companies to function in the course of the lockdown.

“Only cooked food supply from Swiggy and Zomato are not allowed,” tweeted Greater Chennai Corporation, a civic physique that governs the capital metropolis of Tamil Nadu.

Elsewhere in Rajasthan and Odisha, authorities orders proceed to be unclear. In the Telugu-speaking states meals supply service is disallowed in giant components of Andhra Pradesh, whereas Telangana has allowed companies with sure time restrictions.

“Food, including cooked food, is an essential service for at least 20% of the country’s population like students, paying guests and young professionals who depend on it, especially at a time like this when the country has advised everyone for medical reasons to stay where they are, and not travel back home,” mentioned Vivek Sunder, chief working officer at Swiggy.

Top cities affected embody Lucknow, Chandigarh, Ludhiana, Dehradun, Kanpur, Ghaziabad, Bhopal, Indore, Chennai, and Coimbatore.

Over the final two days, Karnataka, Delhi-NCR and Maharashtra—the biggest markets for India’s meals supply startups—have moved quick and issued notifications to native authorities to let meals supply corporations operate easily. “We are working through the teething issues due to the lockdown,” mentioned Deepinder Goyal, founder and CEO, Zomato. “We are yet to see 100% impact in most states.”

Company executives and restaurant house owners that ET spoke to mentioned on-ground execution in several states is changing into an enormous problem, as regulation enforcement authorities tighten restrictions.

This comes at a time when meals supply aggregators are confronted with a two-fold drawback—getting permissions to function and guaranteeing provide companions open for enterprise.

Swiggy and Zomato executives mentioned cloud kitchens throughout the nation are struggling due to a mixture of issues from arranging manpower to procuring recent provides and packaging materials whereas additionally producing the suitable quantity of orders to make operations sustainable.

Mom’s Kitchen, a B2B meals supply enterprise has been dealing with points with sourcing items from its common suppliers. “The regular wholesale suppliers for procuring uncooked supplies will not be working anymore… we now have to purchase in retail. At the identical time, there’s a main workforce problem to fulfil demand,” mentioned its founder Deepti Nanda,

For Ashwin Jain, Founder Instapizza the largest problem has merely been getting crew members into the kitchens. “An absence of consistency in the enforcement of the lockdown with regard to staff of important service firms has meant that lots of our crew members are despatched again residence whereas attempting to commute to work,” he mentioned

However, these shops which have cleared hygiene and security checks are ready to go reside as quickly as they get permission. “My staff is at the premises, they are waiting for their passes from Bengaluru police…the minute we have that we open operations,” mentioned Nitin Saluja, founder, Chaayos.

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