Delivery Times Improve as Gig Workers Return Amid Peak Harvest Season and State Elections Hiccup
Delivery Times to Normalize as Gig Workers Return
Delivery times for food delivery platforms are expected to return to normal soon as a large section of gig workers, who were away to cast their votes in recent state elections and participate in the peak harvest season, return to cities.
According to Swiggy and magicpin, the return of delivery riders is helping to improve rider availability across food delivery platforms. Anshoo Sharma, Founder and CEO of magicpin, stated that the delivery riders who were away from metros to cast their vote are now back in cities, leading to an improvement in the availability of riders for food delivery and subsequently reducing delivery times.
The food delivery sector is expected to see growth after a difficult period over the last few months, with an overall upside of up to 20 per cent. To support merchants across food and other categories, magicpin has rolled out its AI assistant, Vera, which is seeing thousands of merchants adopt it every day.
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| Company | Growth Upside |
|---|---|
| magicpin | up to 20 per cent |
Vera was launched as a response to the LPG crisis among small restaurants to manage their catalogue and prices based on real-time consumption data.
Swiggy, which also owns quick commerce brand Instamart, noted in its latest letter to shareholders that the overlap of the peak harvest season and major state elections had temporarily constrained delivery partner availability across the industry. The company stated that it is navigating a significant confluence of the peak harvest season and major state elections, which has triggered a temporary but widespread migration of the gig workforce over the last four weeks.
As a result, Swiggy has implemented operational measures such as surge pricing and calibration of long-distance deliveries in high-demand areas to mitigate the impact of the disruption. The company expects the situation to start normalizing over the next couple of weeks.
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Investor Takeaway
Investors can expect growth in the food delivery sector with an overall upside of up to 20%.
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