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Indian e-commerce companies on a hiring spree ahead of shopping season

Indian e-commerce companies on a hiring spree ahead of shopping season

Several e-commerce companies in India are reportedly recruiting delivery personnel hastily over concerns that labor shortages might cause them to lose out on the biggest annual shopping season in the country that begins next month.

This comes as the job market in India tightens, with the unemployment rate dropping below 7% in July. Additionally, soaring costs and ongoing economic uncertainties have severely impacted employee turnover in recent times.

BigBasket, for instance, has increased the number of its delivery partners to 2,200 during the quarter that ended in June. The Tata-backed grocery delivery service had just 500 delivery partners in March and now intends to expand to 6,000 by next year.

It is worth noting that BigBasket and some other e-commerce firms including Dunzo have relied on their personnel for delivery services. Meanwhile, Nykaa depends on third-party logistics providers.

According to experts keeping track of the business trends, gig work employment, which consists of salespersons and delivery partners, is likely to account for 9.9 million in India by the year 2023, which is 45% up from 2020.

Some companies such as TeamLease and Quess are operating as middlemen between job seekers and e-commerce firms across India’s Tier 2 and Tier 3 cities. There has also been some positive outlook that the labor crunch is likely to ease soon.

According to Dunzo CEO Kabeer Biswas, there has always been a constant movement in the labor market for the past 4 to 5 years. Although this has resulted in a temporary labor crunch, it is likely to get better given that supply and demand will act as a major stimulant.

Notably, Dunzo is backed by Reliance and has around 75,000 delivery partners.

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Omkar Patwardhan

Omkar Patwardhan started his professional career in the hospitality industry. Having nurtured a deep-sated passion for words however, he found his way into content writing and now pens down articles for numerous websites, including News Origins, spanning the sectors of business, finance, and technology.