Call Snapdeal to get cash at doorstep

Online marketplace Snapdeal announced the launch of a ‘Cash@Home’ service, allowing users to order cash and have it delivered at their doorstep. Critics are questioning the legality.

Snapdeal says this is a goodwill gesture, for allowing users to easily access cash without having to queue at their bank or at ATMs. Snapdeal will be using the cash it receives through its Cash on Delivery to operate this facility.

The service is already live in Gurugram (Gurgaon) and Bengaluru. It is to extended to other major cities in the coming days, with the operative details to be updated on user feedback and availability of currency notes.

At the time of cash delivery, the consumer will need to swipe their ATM card on the PoS machines which Snapdeal’s courier partners will carry for all such deliveries. Once the transaction is successful, the courier person will hand over ~2,000 in cash. A user may request ~2,000 per booking and any bank’s ATM card can be used to pay for the cash. The customers are not obligated to order anything else from Snapdeal to access the facility. “At Snapdeal, we aim to be the marketplace that seamlessly services every customer need. As the country transitions to a more digitally enabled economy, we’ve launched a series of timely initiatives — from wallet and card on delivery, to extending FreeCharge partnerships to smoothen this transition. The launch of the cash on demand service is intended to further help our consumers tide over any cash crunch they might face in addressing their daily needs,” said Rohit Bansal, cofounder.

“A marketplace is supposed to have a seller who sells products via the e-commerce platform. Who is the seller in this case? Also, technically, they are not supposed to influence pricing. Here, including the logistics cost, delivery of ~2,000 would cost around ~200 at least. Who is bearing that cost? I believe Snapdeal is playing in the grey, as there are no set guidelines around cash delivery and it is only another marketing ploy,” said a senior executive of one of the biggest e-commerce entities, in direct competition with Snapdeal.

Snapdeal, as mentioned, says it is using the cash they have from delivery orders and can do so without any regulatory isues. It is only deducting a nominal charge of Re 1 as convenience fee, to be paid through FreeCharge or through a debit card at the time of booking the order. Amazon, Mobikwik and others in the segment said they had no plan to starting such a service. “This would be going against the idea of us being a digital wallet company,” said a co-founder of such an entity.