Covid-19 Consumer Behaviour And The Way Forward For Businesses

Consumers across categories of goods and services are fast adapting to this ‘new normal’ of online buying or on-demand delivery

It is imperative that the impact of the second wave of Covid-19 pandemic on the overall economy comprising the cross sector is here to stay. Consumers across categories of goods and services are fast adapting to this ‘new normal’ of online buying or on-demand delivery.

Disruption In Last Mile Delivery

The major shift that is likely to emerge from this trend is a collaboration between e-tailer and specialist logistics service provider companies to ensure efficient ‘last mile delivery’ of goods and services. There has been lots of innovation in this particular space with focus on consumers while it is going to create further disruption with focus on ‘last mile delivery’ in the on-demand delivery space. Logistics and distribution companies are witnessing huge demand for last-mile delivery and contactless package delivery. This is leading to enabling them in building new capability of managing warehouses. Logistics remains the sole ‘touch point’ between consumers and the brand, while making the ‘last mile’ an exceptionally critical factor.

Addition Of New Goods And Services

From buying food and groceries, to on-delivery of medicines, clothes, shoes, lifestyle products and what not? The life of a consumer has become easier today with not only hailing cab rides but getting other services like driver, carpenter, electrician, plumber, etc. fuel and alcohol at doorstep. Consumers look for various categories of services online, while they ask for it and they get it as per their preference of delivery day, date and time with various payment options integrated in the apps. In view of the second wave of Covid-19 pandemic, consumers are spending more time on digital media and this digital spending behaviour will continue in 2021 and beyond. The on-demand delivery segment is witnessing a tremendous shift in consumer buying patterns which will continue due to proliferation and integration of new age technology applications.

Digital Transformation

For on-demand businesses to stay ahead of the curve, it is important to adopt ‘digital transformation’ across the business ecosystem by integration data driven predictive analytics. While this is going to help expand the geographic reach and further add prospective consumers, it is also important to note that a large mass of delivery operations are not under their direct control. To mitigate this, businesses are using their own online platform for ordering and delivering, while using ‘deliver as a service (DaaS)’ provider to perform the actual delivery of goods and services.

The Way Forward For Businesses

According to industry experts and analysts, it is said to be one of the best phases for the on-demand delivery business model and high time they strive for ‘top-of-the-

mind’ recall among the consumers. During this phase on-demand delivery businesses should aim for becoming ‘inseparable’ from the life of the consumers by offering best-in-class services with speed, agility and convenience.

Today the consumer has the real power at their hands, as they experience the convenience of doorstep delivery, quality and secure payments gateways, notifications and ratings; and last but not the least cashback and discounts.

It is important for marketers to note that demonetisation has led towards cashless payment while Covid-19 has led towards faster adoption of on-demand delivery at doorstep. It is a now-or-never time for businesses capitalise on the above trends while offering seamless service experience to ever growing consumers in the on-demand delivery space.


The author is Rajiv Mathur, Managing Director, The Fuel Delivery

Tags assigned to this article:

Disclaimer: The views expressed in the article above are those of the authors' and do not necessarily represent or reflect the views of this publishing house. Unless otherwise noted, the author is writing in his/her personal capacity. They are not intended and should not be thought to represent official ideas, attitudes, or policies of any agency or institution.