COVID-19 fallout: UAE's online business gets stretched to limits

With demand surging after the COVID-19 outbreak, the UAE's online retail space is being stretched to the limit - especially on the delivery side. "Supplies of grocery and all essential commodities are still coming into the country without a hitch… but the problem is with getting them to consumers on time," said V. Nandakumar, Chief Communications Officer at LuLu Group. "So far, we have relied on own personnel to take care of our web store order deliveries - but that had to change.

"We will have to appoint thirdparty delivery companies to take care of the last-mile logistics. It's already been done in Saudi Arabia to cope with the online order surge. Orders have to be delivered within a set timeframe, and more so with fresh produce. Any delay will spoil the whole online experience for shoppers. No retailer can afford that."

The pressure on delivery services has become more intense these days, and not just because of the spike in orders. The limits on travel between 8pm to 6am daily ensures orders can only be delivered in the rest of the available time. Average time take for delivery is now between four to seven days.

This is where the retailers and fleet operators are getting creative - in Abu Dhabi and Dubai, taxi fleets have been co-opted to take care of door-to-door delivery. It's still a work in progress, but something needs to be done to try and match demand vs. delivery.

According to a spokesperson at Eat App, "Delivery services are providing a crucial service right now as people are permanently at home. They've adapted quickly to the situation to meet demand and introduced safety measures like contactless delivery to address growing concerns with bringing food from outside sources into their homes.

"This is no doubt an extra cost that these delivery businesses need to incur in terms of training, messaging and brand awareness - but one that is definitely for the greater good."

Until the 8pm-6am movement restrictions came into effect, online F&B ordering and delivery was one of the biggest gainers from having people confined to their homes. But now, with the dinner and late orders winding down, the F&B online portals are heavily reliant on the serving the other meal options. But that may not be enough to compensate for the dinner deliveries.

"It's still too early to assess the full impact as many restaurants were still delivering food after 8pm until recently," said the Eat App spokesperson. "Of course a drop off is expected - but we are also looking for a shift in consumer behaviour as they react to the developing situation. "The situation is developing daily as new rules are coming in." Booking a table at a restaurant has gone down as a priority for UAE residents. The F&B industry will need options to get through the coming weeks.

With online on the march as never before, other categories in the UAE are fast-tracking their acceptance of it. The pharmacy business is one such.