Rising Fuel Prices May Increase Food Delivery Costs

As fuel prices continue to rise due to geopolitical tensions, online food delivery services like Zomato and Swiggy may see increased costs. A report indicates that the recent fuel price hike could lead to a significant impact on delivery economics, prompting gig workers to demand higher wages. The Gig & Platform Service Workers Union has organized protests, warning that many workers could leave the sector if their earnings do not keep pace with rising costs. This situation raises concerns about the sustainability of gig work in the current economic climate.

By Narendra Chaudhary May 20, 2026, 11:38 IST

Impact of Fuel Price Surge on Food Delivery Services

Ordering meals through online food delivery services is expected to become more expensive soon due to escalating fuel prices, a situation exacerbated by the ongoing conflict in Iran, which has led to a crude oil supply crisis. According to a report from Elara Capital, food delivery and quick commerce companies, including Eternal, the parent organization of Zomato and Swiggy, are likely to face short-term cost pressures. The report highlights that the recent hike in fuel prices, approximately Rs 4 per litre, has resulted in a nearly 4% increase in petrol and diesel costs amid geopolitical instability and rising crude oil prices. This fuel price surge is projected to negatively affect delivery costs by around Rs 0.44 per order.

Elara Capital noted that if gig workers demand higher wages due to increased fuel expenses, the overall impact on company profits is expected to remain manageable in the short term. The report states, "Any rise in fuel costs can directly influence delivery economics by reducing delivery partner earnings and potentially heightening payout-related pressures." Currently, the average delivery fee is estimated to be between Rs 35-50 for quick commerce and Rs 55-60 for food delivery. On average, Eternal's delivery cost is around Rs 45 per order, while Swiggy's is about Rs 55. Given that fuel constitutes roughly 20% of delivery expenses, the estimated fuel cost per order is around Rs 9-10.

Gig Workers Demand Action Amid Rising Costs

Gig Workers Protest Against Fuel Price Increases

Recently, the Gig & Platform Service Workers Union (GIPSWU) has called for an immediate increase in per-kilometre service rates and organized a five-hour strike of app-based services in response to the fuel price hikes. The union expressed concerns that the rising fuel costs will significantly affect approximately 12 million gig workers who rely on motorcycles and scooters for their livelihoods. They cautioned that if earnings do not adjust to match the rising fuel and maintenance expenses, many workers may be compelled to exit the industry.