‘Grocery at your doorsteps’ scheme fails to bear fruit

Partnered companies struggle to break-even without govt subsidy

LAHORE: The Prime Minister’s latest scheme to provide fruits and vegetables at official prices at the doorsteps of Lahore’s citizens has hit a snag.

Where most companies with sufficient investment capital remained apprehensive about the venture owing to the lack of subsidy and financial incentives from the government, two smaller companies have made the leap of faith; agreeing to sign an agreement with the Market Committee. However, during the ongoing pilot sales, the companies have only been receiving a total of 50-60 orders daily, while a fleet of 25 motorcycle riders has been appointed by the two companies to deliver the goods across the city.

According to details, Prime Minister Imran Khan had given the directions a few weeks ago to develop a mobile application to provide door-to-door fruit and vegetable delivery service, which offers prices compatible with the government rates across the city of Lahore. Following the Prime Minister’s orders, Deputy Commissioner Lahore began pitching the scheme to various private companies last month, out of which only two had pledged to participate. Upon their approval, government officials have drafted the legal agreement to be signed by the two companies on board with the scheme.

Online grocery shopping looking to find a way in

However, as per sources, so far the scheme has failed to garner a favourable response from the city of 12 million. With orders as low as 50-60 in a day, it has become increasingly difficult for the two companies to pay their employees and provide for fuel and other expenditures in the absence of subsidies or incentives from the government.

As per the draft, the government has assigned different zones for each company to operate within the city. Participating companies are also required to indicate the Market Committee’s logo on their mobile application as well as their delivery fleet’s uniform. In addition to that, all items are to be delivered within 24 hours of receiving the order, which has to be worth a minimum of Rs 500 to be dispatched. While the company is to also provide its employees with Android or IOS operated smartphones to easily receive and process the orders placed through the application.

Lastly, the Deputy Commissioner’s office and the Market Committee will have access to the company’s mobile application and all its data, while the company itself is not permitted to provide its buyers’ information to any other public or private entity. Any breach of agreement three consecutive times will result in the immediate cancellation of the company’s service.

Published in The Express Tribune, February 20^th, 2020.