Current reports estimate that the advent of local digital services and ecommerce has created approximately 200,00 blue-collar delivery jobs in India.
It is, however, also the kind of job that continues to see a high attrition rate. This means that companies like Zomato, Swiggy, Dunzo, Amazon India, and Flipkart have to replace a significant portion of their delivery workforce every three to four months.
“A small portion of these workers either switch jobs to go to a different delivery company, or they take up a different job,” said Madhav Krishna. “And a large chunk of them end up going back to their villages to work on their farms.”
“There is a cyclical migration phenomenon in India wherein a very large population migrates from villages to cities looking for a job. They work in cities for a few months and then return to their hometowns in time for the next crop harvesting season,” he said.
The attrition rate is so high that it has become a major challenge for companies to keep hiring new people, Krishna said. Additionally, with e-commerce and on-demand delivery space projected to grow four to five times in India by 2025, efficient supply acquisition is a major requirement for growth.
Three years ago, Krishna, who obtained his master’s degree in machine learning from Columbia University before moving to Bangalore, founded Vahan, a startup that is attempting to help these companies find potential blue-collar workers at scale.
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