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Online delivery providers see business flatten out

By YOURI KEMP

Tribune Business Reporter

ykemp@tribunemedia.net

Online delivery service providers yesterday said they have experienced no major uptick in demand since COVID-19 restrictions were relaxed on restaurants and other sectors over the past month.

Granville Collie, MUTRU’s managing director, told Tribune Business there is “definite potential" for online deliveries to gain scale. Yet he added: "The factor that we all have to be aware of is that delivery in general is more of a convenience type of thing.

"It is not a necessity and, with that being said., with the country having a downturn that’s going to affect any businesses that aren’t a necessity. It depends on how fast the economy can rebound. I wouldn’t use the word luxury, but it [online delivery services] isn’t a necessity. So when people’s finances drastically lessen, they tend to only spend on necessities more.

“It's highs and lows, but definitely right now our economy hasn’t rebounded. Just because we are able to go out a lot more, and some businesses are able to operate, it doesn’t change the fact that the majority of the population for the last six months haven’t been working, or have been working for a minimum three months."

Mr Collie said much depends on how fast the Bahamian economy can rebound, particularly the tourism sector. "As long as we don’t have the tourists then that means a lot of people just won’t have the money. While the tourism industry isn’t a major area or focus for us, we are open to all possibilities to be honest," he added.

Kyle Albury, owner/operator of Kraven, acknowledged: “I haven’t seen a tremendous uptick in activity. Things have been steady. I think the industry will continue to evolve because it’s now the norm; not only locally but globally.

"The mindset of consumers has also changed, and I think they will continue to embrace these types of services and find ways to integrate the use of technology in their every day lives. “

Jamial Rolle, Runnah’s chief executive, said: “Well, this is the new norm. Safety is in the forefront of people’s mind now, and I think it will be going forward. Logistics have taken this route, businesses have to evolve to get their products to customers safely and quickly, and customers have to think about what is the safest method of getting what they want.

"I’ve seen the adaptation where I am and that’s why we’ve opened an office here in Atlanta. I think in regards to The Bahamas it will definitely head that way, more so especially with tourists entering the country.”

Comments

John 3 years, 7 months ago

there are a whole lot of synergies in play. First and foremost the economy is still basically at a standstill. Despite businesses being allowed to open, there is little or no new money being injected into the country. So people who have jobs and/or income are very fickle about how they spend their money. The grocery store crowds have thinned out, and the bank lines have gotten shorter. Rather than jitneys rushing through the streets, breaking all the rules and speed limits, they are now driving at a snails pace (would you have ever place a bet on that happening?) praying for a passenger to pick up. Is it fear of riding the bus or have persons still sheltering in pace or after the lockdowns, have persons, if only temporarily learnt to get around without using the bus system? have they learned to shop without needing a delivery system? But most retaielrs will tell you, despite reopening sales are foo by at least 40%, especially with the hotels still closed and schools not being physically opened. So will it get worse before it gets better?

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ohdrap4 3 years, 7 months ago

Delivery tends to be too expensive. If the delivery price could be the price of gas, I would probably use it.

I order curbside from a local business They charge 5 to deliver per item. That is why I go pick it up. If they charged let's say 5 for the first item amd 1 for each extra on the order I would use it. 20 to deliver 4 items down the road is more than a an air fright forwarder.

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