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Nationwide Strike by Gig Workers Affects Food Delivery Services on New Year's Eve

On New Year's Eve, a nationwide strike by gig workers is set to disrupt food delivery services from major platforms like Zomato and Swiggy. Led by unions advocating for better wages and working conditions, the strike has already seen over 170,000 workers participating. With the highest order volume expected on this festive night, customers are advised to plan ahead. Companies are responding with incentives to retain delivery partners, but the situation highlights ongoing challenges in the gig economy. Read on to learn more about the implications of this strike.
 

Impact of the Strike on Food Delivery Services

On New Year's Eve, food delivery and quick commerce services across the country may face disruptions. Gig workers associated with platforms like Zomato, Swiggy, Blinkit, Zepto, Amazon, and Flipkart have called for a nationwide strike. This action, led by the Telangana Gig and Platform Workers Union (TGPWU) and the Indian Federation of App-Based Transport Workers (IFAT), aims to demand better wages, safer working conditions, and social security.


According to union representatives, over 170,000 workers have joined the strike overnight, and this number is expected to rise. The primary concern driving the strike is the 10-minute and 20-minute delivery model, which workers deem unsafe. Additionally, they have raised issues regarding declining earnings, extended working hours, arbitrary ID blocks, and the absence of social security. Workers are also demanding a minimum payment of ₹20 per kilometer, emergency leave, and maternity protection for women.


This strike follows a significant disruption during the Christmas period (December 25), affecting deliveries in several cities. Given that New Year's Eve typically sees the highest order volume, this strike could pose challenges for those planning celebrations. Major cities like Delhi-NCR, Mumbai, Bengaluru, Hyderabad, Pune, and Kolkata are expected to experience the most significant impact.


Company Responses to Mitigate Impact

In an effort to alleviate the effects of the strike, Zomato and Swiggy have announced special incentives for delivery partners. This is a common practice during festive seasons, but this time it has been implemented earlier due to the pressure of the strike.


  • Zomato: Offers payouts of ₹120 to ₹150 per order during peak hours from 6 PM to midnight, with a promise of earnings up to ₹3,000 throughout the day. Penalties for order rejections or cancellations will be waived.
  • Swiggy: Offers up to ₹10,000 in earnings combined for December 31 and January 1, with additional incentives of up to ₹2,000 during peak hours (6 PM to midnight).


The companies state that these incentives are designed to keep riders available during high-demand periods to minimize service disruptions. Zepto has also increased its payouts.


Advice for Customers

If you plan to order food or groceries online for your New Year's party, it is advisable to place your orders in advance or make alternative arrangements. Many cities may experience delays or cancellations in deliveries. Restaurants and cloud kitchens are also accepting bulk orders in advance to mitigate losses.


This strike highlights significant issues within the gig economy, where despite rapid growth, the conditions for workers are deteriorating. While negotiations between companies and unions are anticipated in the coming days, a deadlock currently persists.