E-commerce providers in 75% demand uptick

By YOURI KEMP

Tribune Business Reporter

ykemp@tribunemedia.net

E-commerce businesses have seen a dramatic spike in demand for their services as they try to keep pace with the influx of new customers amid the COVID-19 lockdown.

Ryan Turnquest, owner of Discount Distributors, the manager of the produceexpresss.com web app, told Tribune Business he has seen a 75 percent increase in business volumes since the start of the government's emergency powers orders in late March.

He added that the increase has been "across the board on everything, even slow moving items. Persons are just shopping and just staying safe. We have been an engine to help people stay safe, and a lot of customers don't have to go to the shop when they shop with us," Mr Turnquest said.

"I think our platform may be the only platform really ready for it because we have sufficient delivery vehicles, both refrigerated and also electric, so we are trying to stay green at the same time. We are working with Easy Car sales with their electric vehicles."

Mr Turnquest continued: "We have a 75 percent increase in business. Before this pandemic we only had 1,000 users, and we now have 6,000 users in the last two weeks. We have added 5,000 in the last two weeks. These are actual orders. Because of the curfew we actually have over a 3,000 order backlog but we're working on it right now.

"Normally before the curfew came in we delivered up until 11pm. We have six vehicles that are losing four hours of delivery time. We are now at three days to get orders now; it is a 72-hour lead time, so people just need to be more organised in their ordering if they expect it in 72 hours. Wal-Mart is on 96 hours, so I don't feel so bad."

Since the nationwide lockdown, Mr Turnquest said he added ten staff members and four additional vehicles to his fleet to manage the huge spike in demand. Yet he warned others not to rush into the e-commerce business in an attempt to cash in on the pandemic.

He said: "They are requesting online businesses for everybody else, but that's not an easy course. First of all, an app takes about six to eight months to get done. Since we had launched in September, we had a good six months to test run.

"So if everyone comes out with their platform right now it is going to be a whole heap of headaches. We have already gone through our headaches, and the only headaches we are going through right now is dealing with the influx. But we are thankful for it, and we are learning ourselves in the fire right now. Once this is all done we may lose maybe 20 percent of the customers that came on the new app, but I think a lot of persons are going to go in the new direction."

Mr Turnquest added: "To be honest I am actually considering close my storefront and only doing everything through the app, and the storefront would just be for pick-up orders only. That's the direction I was ever going in, and I didn't create my app because of this [pandemic]. My app was created in September to eliminate my storefront; I just didn't see the movement to do so. That may be a risk I take but I think this is the way the world is going now."

Revealing that his business receives four to five shipments a week, Mr Turnquest said: "While our space may be small, it helps us to keep fresh product. The other thing is that there are other apps, but they have to actually go to a store and purchase goods.

"We own our own products, which makes our product cheaper and our delivery is only $10. I have big freezers and coolers. I am a grocery store. I supply restaurants and hotels as well. So we have the product and we give the consumer the wholesale price."

Kyle Albury, owner of Kraven food and beverage delivery service, told Tribune Business: "It's been going OK. Business has picked up in the last three days or so, and I have been getting a lot of interest from vendors as well. Yes, I have on-boarded a few more restaurants in the last week or so, and the order count has definitely increased. My order count has increased by 40 percent.

"My client base would be individuals, but obviously I have partnerships with the different restaurants as well. So I assume they are my clients as well, but technically I service individuals."

Mr Albury said he has increased staff and "on-boarded" 30 more drivers because of the greater demand, and to help to deal with the additional vendors he has taken on. "We have some of the major franchises that we have on-boarded with two additional ones we will be on-boarding next week," Mr Albury said.

"It's been very busy. I am exhausted. We practice good hygiene, and we practice proper standards in terms of sanitary measures in terms of our drivers delivering food to our customers. We have mandated that all of our of drivers sanitise their insulated bags that we transport the food in to keep it warm, and we also follow the protocols that are instructed by the government in terms of washing your hands, using hand sanitisers when going into the restaurants, opening doors.

"We implemented the six-feet policy. We would leave the bag by their doorstep, and step away and let them pick up the bag. In addition to that I have given my drivers disposable gloves. Some have opted for them and some have not, and we have given them masks in terms of doing delivery as well," he continued.

"The safety of our customers, and our vendors and drivers, is very important to us, and we are taking this thing very seriously. We have taken steps to mitigate any issues that may affect the people in our business chain."

Comments

mckenziecpa says...

Boy I wonder how these business models are making money sine Urber been in business they have not made a profit. Good luck guys

Posted 7 April 2020, 4:37 p.m. Suggest removal

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