Internet shutdowns in December may have hit about 18 to 20 per cent of the businesses of online retailers Amazon and Flipkart, according to a report by Business Standard.
Industry experts believe that Amazon and Flipkart may have witnessed an 18 to 20 per cent decline in their business volumes this month.
December is usually a busy month for ecommerce companies owing to holidays and festive shopping. As a result, companies were expecting huge sales in tier-II and tier-III cities and towns in the country. However, suspension of mobile data services in parts of the country amid protests against the new Citizenship Amendment Act led to a decline in their sales volume.
According to the report, ecommerce giants reported a decline in products sales in places such as Uttar Pradesh, the Northeast region, including Assam and parts of Karnataka and the National Capital Region, where the authorities banned mobile internet services recently.
Many e-commerce companies have reportedly told the government that internet shutdowns were hurting their business.
"We don’t know when these protests would stop and a number of other issues might also come up, but banning the internet is not the best solution. The authorities are using it very frequently," a person aware of the development told the publication.