In the two weeks since the government announced its demonetisation initiative, India’s internet commerce industry has scrambled to adjust. Internet entrepreneurs have applauded the move, ostensibly for its long-term payoffs, although online marketplaces and logistics startups have been hit hard because of the cash crisis that has followed the shock anti-graft measure.
Digital payment companies and on-demand delivery firms, though, have benefited both from the cash shortage and the government’s push towards cashless transactions.
For online retailers that have been collecting a huge slice of their payments in cash against deliveries, order volumes have halved since the November 8 announcement recalling Rs500 and Rs1,000 currency bills, according to industry analysts. Gross sales are expected to drop sharply, wiping out much of the gains earned during the festival season sales last month.
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