Vertical ecom majors like Pepperfry, Nykaa feel the squeeze post Covid-19 outbreak

Bengaluru | New Delhi: Vertical online goods and services companies, including Urban Company, BookMyShow, Pepperfry and Nykaa, which do not feature in the government’s list of notified essential services, have been hit hard by the Covid-19 pandemic, with businesses plummeting to near zero in some cases.

This comes at a time when India’s leading online marketplaces Amazon and Flipkart have also seen a steep decline in sales, having shuttered their flagship categories, such as smartphones, electronics, and large appliances, which contribute more than 70% of sales. They are now largely attempting to meet the essential needs of customers.

“(In India) we have gone from 50,000 orders a couple of weeks back, to zero right now,” said Abhiraj Bhal, CEO of Urban Company.