Online shopping surges as coronavirus spreads

SEATTLE — For gig-economy drivers working to serve a coronavirus-driven surge in demand for delivery, the weekend was a frenzied rush as shoppers placed grocery orders and some systems appeared overwhelmed, at least temporarily. Volumes also were abnormally high Monday.

“This was definitely the weekend where you can tell that all of Seattle was freaking out,” said one driver who ferries passengers, groceries and packages around the region for Uber, Lyft, Instacart and Amazon.

E-commerce delivery, which has grown rapidly in the past two decades, could take on an even bigger role with a population that appears increasingly uneasy about going out in public.

While many physical retailers were jammed and running out of items including toilet paper, medicines, water and bananas, other shoppers sought to avoid the stores altogether, relying instead on services such as Amazon and Instacart. As the outbreak worsens, more people may turn to e-commerce, analysts and survey data suggest.

"Delivery might be much better than going to a store, both for society and for individuals,” said Karan Girotra, a professor of operations and technology at Cornell University. “But it means that delivery workers will be at the front line of this challenge.”

More than 27% of 1,121 U.S. internet users surveyed by Coresight Research in late February said they were already avoiding public places such as shopping centers and entertainment venues, while 58% said at the time they would do so if the outbreak worsened.

That should bode well for e-commerce companies, said Tom Forte, analyst and managing director at investment firm D.A. Davidson. But it also poses challenges to supply chains and delivery networks.

“The challenge for Amazon, for GrubHub, for everyone is what if your workforce gets sick?” Forte said.

The contract workers who handle a large and growing share of deliveries are not like a traditional employed workforce that may be more loyal and willing to step up in difficult times. They don’t get health-insurance benefits or paid sick days.

E-commerce companies “have less control if a lot more people are going to start buying online (and) they need to ramp up their capacity,” Girotra said.