Food delivery firms focus on Tier II, Tier III cities; likely to create over 50K new jobs

UberEats is expected to help Amazon achieve this. The food delivery service, which is valued at $300 million, was initially in talks with Swiggy over acquition, however, the talks fell through over issues regarding valuation, the publication reports

Written by August 31, 2019 14:26

New Delhi: Amazon’s entry into online food delivery service in India and aggressive expansion by Indian giants like Swiggy and Zomato will produce nearly 50,000-60,000 new jobs by the end of this financial year.

Around 560,000 people are likely to be part of online food delivery by March 31 next year, compared to about 500,000 currently, according to market research and advisory firm RedSeer. About 80-85% of these executives remain active.

The number of delivery staff grew from 25,000 in 2016 to 250,000 in 2018 and are at double those levels currently, said Rohan Agarwal, engagement manager at RedSeer.

The tech giant believes that an online food delivery service would enable people come to its platform more frequently than electronics, groceries or even fashion accessories. And so, addition of the food delivery service to the Prime membership plan, which has logged more than 10 million users, will not only boost the total number of users but also the daily transactions.

UberEats is expected to help Amazon achieve this. The food delivery service, which is valued at $300 million, was initially in talks with Swiggy over acquition, however, the talks fell through over issues regarding valuation, the publication reports. Now, the company is in talks with Amazon India over a possible acquisition.

Hiring of food delivery executives has seen 20% growth compared to last year, but shortage of manpower is a concern, said Alok Kumar, senior director (sales, account management and global accounts) at ManpowerGroup India.

“Especially in smaller cities, getting a person with a two-wheeler is a challenge. So, they (aggregators) have started local deliveries even on bicycles, including those funded and branded by companies,” he said.

This would translate into better incentives, loyalty bonuses and possibly even hikes for these executives, hiring companies said. Food delivery executives already earn Rs 18000-25000 in many cases and up to Rs 45,000-50,000 at the top end.