Update: This Quora thread suggests that Delhivery’s attempt to change contracts for Gharpay clients is causing problems: it apparently wants to charge customers for failed transactions, and failed transactions are defined by how many customers say no.
Updated: In a fresh mail that went out following our story, Delhivery has acknowledged that their mail went out to a large set of Gharpay clients, which it needn’t have done, and explained the issues that they are facing, both from a technological and an operational (contractual) standpoint. Do see the mail below.
A Gharpay client did tell MediaNama that they find it strange and unfortunate that the services were being stopped with just a 6 hour notice.
Yesterday: Logistics firm Delhivery appears to be facing some integration issues with Gharpay, which it had acquired a little over a month ago. The company has sent out an email to clients, saying that it is facing “several unexpected issues at our operations and systems front”, which have let to unsatisfactory turn-around-time’s, reconciliation and remittance delays. They’ve asked clients to withhold pushing new orders to either Gharpay/Delhivery panel either manually or through the API from 5th August to 30th September 2013. An e-commerce client of Gharpay informed MediaNama about this.
In an emailed response to a query to elaborate on the operational and systems issues related to the integration of the two companies, Sahil Barua, CEO of Gharpay, told MediaNama that this request is being made “only to clients who do less than 50 orders a month and who we are moving from a manual upload system (at Gharpay) to an API driven one for Delhivery to make the process smoother especially given that Diwali rush is coming up.”
This doesn’t explain the systems and operational issues mentioned in the mail, and we noticed that the email also asks clients to not push new orders through the API, hence can’t be applicable only to those clients who use the manual upload, contrary to what Barua says in his response. Also note that this email was brought to MediaNama’s attention by a Gharpay client to tells us he’s always used the API. Something is amiss here.
We’ll update in case we hear back from Barua.
At the time of its acquisition by Delhivery, Gharpay had 750 clients. Gurgaon based Delhivery provides logistics and backend solutions for E-Commerce companies, providing procurement, warehousing, packaging and last mile delivery services. Last year, Times Internet had picked up a minority stake in the company.
The mail Gharpay sent to clients:
Dear GharPay Client,
As you are aware, in the past few weeks of Gharpay/Delhivery operational integration, we have been facing several unexpected issues at our operations and systems front. This has led to unsatisfactory TATs, reconciliation and remittance delays etc.
In light of the current situation, we would request you to withhold pushing any new orders to either Gharpay/Delhivery panel either manually or through API from 5th August to 30th September. We request your kind cooperation in this regard.
Please note, all pending orders uploaded till the evening of 5th August will be serviced by us and pending payments will be transferred by 15th of August.
Update: Mail sent afterwards –
Apologies, we just realized that the previous email sent was unintentionally ambiguous. There are two components to transferring clients from Gharpay to Delhivery which are the “operational issues” we referred to in the email:
1) Tech integration – while we supported manual order uploads into Gharpay and our systems to start the transition process, that is fundamentally an error-prone system and we will require clients to do this via API instead. Our technology team is working with clients in a phased manner to help them achieve this
2) Contract – At this stage there is no contract between Delhivery and you, which prohibits us from continuing to accept cash on your behalf
Needless to say if we can sort out both of the above there will be no disruption in service at all.
The email was sent out to a large set of Gharpay’s clients together – our apologies if both issues highlighted above do not apply to you.
If you wish to continue with the Gharpay service (and we would be happy to support this), please get back to us with a signed copy of the draft contract and contact our technology team to kick off the API integration process.
Please note, we will share the contract with you shortly.
Note: Disclosures apply