Online shopping

Strong growth in delivery segment likely in 2022 as online shopping behavior takes root among consumers: Vahan

Despite the rising cases of the highly infectious Omicron variant of Covid-19 across the country, India’s thriving blue-collar segment predicts higher demand growth for blue-collar workers across the delivery category in 2022. Although this developing situation has raised some uncertainty about a possible third wave, it is likely to manifest in/accelerate consumer behavior change towards a more digital world and trigger lasting changes in behaviors online shopping.

Vahan, a tech start-up that enables companies to hire blue-collar workers at scale, sees 2022 as the year of a new acceptance of online shopping behaviors by consumers of all categories. The company estimates that this emerging situation will support a massive increase in demand for delivery people, where metros will contribute more than 60% of overall demand in 2022, followed by tier two and tier three cities. Vahan witnessed a rapid demand for delivery people during the weekday period from August to November last year, fueled by competitions, discounts, incentives and more. which took place at all levels around the IPL season and the T20 world cup.

A rapidly growing consumer cohort identifies speed, convenience and quality as the most important elements of a positive customer experience. This trend will likely continue in the near future as grocery delivery service providers expand fast commerce service to attract and retain customers. Vahan’s data shows that grocery delivery service providers offered fast trade and reduced the delivery radius to 2-3 km during the holiday season last year. This fueled demand for cyclists and brought in more temporary workers, increasing the hiring pool. The company expects a monthly increase in demand of almost 30% across all sectors in 2022, compared to 25% across all sectors in 2021, with the food delivery category being the largest contributor.

Bike taxis and food and grocery delivery have given weight to India’s booming e-commerce industry. This was corroborated by data from Vahan which shows that companies hired nearly double their number of business-as-usual (BAU) over the 2021 holiday season. According to Vahan, bike taxis have become a preferred mode of travel during the pandemic period and its sustained demand during the August-November weekday period indicates a shift in consumer travel habits in general. Vahan expects bike taxis to grow in popularity in 2022 with demand coming from across the country and an upward spiral in e-commerce demand in Tier 2 and Tier 3 cities with increasing internet penetration in India and consequent changes in consumer buying habits.

2021 has been marked by the growing focus of organizations in the delivery space on achieving gender parity in the workplace. This indicates a change in the perception that labor is not appropriate for women. This ten delivery to e-commerce in 2021.

According to Madhav Krishna, co-founder and CEO of Vahan, “India’s blue-collar labor market is set to repeat its astonishing growth in 2022, as online shopping behavior and the preference for fast delivery take root in Vahan, with its technology-based recruiting platform that seamlessly connects employers and deliverers efficiently, with unprecedented speed and scale, is clearly sitting in a sweet spot given the growing number of organizations adopting the delivery model and growing number of blue collar workers are waking up to a new era of comfort and convenience that online recruitment portals like Vahan bring to them.

India has more than 250 million blue-collar workers, and this number is increasing with a decline in agricultural employment and the addition of around 7-8 million new university graduates to the workforce every year, including 60% lack employability skills and end up joining the blue/grey collar workforce. This presents a huge opportunity for placement in the blue collar industry.

Interest in Vahan’s investment solution is high. It currently recruits over 10,000 people per month and is expected to become India’s largest blue-collar recruitment platform in 2022.