Making the case for a slowdown

The need for instant gratification came sharply into focus when a recent announcement made by a popular restaurant aggregator platform created a social media frenzy. The platform claimed it now delivers food in under ten minutes to its customers – an offer that invited both bouquets and brickbats. On one hand, there were advocates who said that such innovations were necessary in a highly competitive space while there were also voices of concerns that said this delivery model would be unsustainable in the long run. Needless to say, safety was a big concern as speeding delivery staffers unleashed on city roads could be a traffic hazard.

Here in Chennai, a field survey conducted in 2018 had found that 73% of food delivery personnel violated traffic rules while out for delivery. Of course, such incidents have precedents outside India as well. Back in the late 80s, as many as 20 road fatalities were recorded in the US, involving pizza delivery agents who were rushing to deliver their orders in under 30 minutes. Following a slew of million-dollar lawsuits, it became clear to corporate America that it made sense to steer clear of such promotions that could potentially run afoul of the law of the land.

The pressure to speed up customer satisfaction lies at the heart of the aggregation and e-tailing business. From the idea of hailing a cab via a popular aggregator or ordering a bag of groceries through the mobile app, or even picking up a late night snack through the e-platform, what goes unseen at many times is the painful manner in which the ground force employed in such services are taxed for being in business.

A simple example of that can be witnessed in the manner in which taxi and auto-rickshaw aggregators fix the pricing of their services at various points in time. Many a time, the dirt-cheap discounted rides that customers benefit from come at a significant loss to driver partners. Most cabbies do not break-even vis-a-vis operating costs and earnings on an average day. To top it off, in spite of being at the forefront of the digital economy, many such aggregators are the last ones to incorporate fuel price hikes into the tariff of the rides, which compels the drivers to either shell out the extra cost of petrol from their own pockets or inform their customers that they will be required to cough up an amount over and above their base fare.

A far cry from the dream of Digital India, most drivers now demand cash, as the aggregators rarely credit their digital payments on time. And that is the kind of lack of foresight that lies at the core of such valuation driven gimmicks employed by new age start-ups. If some investments have been directed towards better work conditions, employee welfare measures like equitable, industry-grade pay scales, higher customer delight and a strong work ethic, there is no doubt the product or service will begin paying for itself – sans gimmicks.