Challenges for Quick Commerce Platforms Amid Rising Demand and Elections
Impending Demand Surge for Delivery Agents
With the IPL season approaching, quick commerce platforms are bracing for a potential crisis regarding the availability of delivery personnel. Reports indicate that the need for gig workers may increase by 25% in the upcoming months, coinciding with the harvest season and legislative elections in West Bengal and Kerala. This situation is likely to lead many gig workers to return to their home states. Traditionally, as summer arrives, these workers head back to their native towns for agricultural work, and this year, it aligns with the election period.
Every year, quick commerce platforms encounter this challenge as gig workers tend to leave for their hometowns during this season. To incentivize those who remain, these platforms typically offer around 15% more to their riders. However, the rising geopolitical tensions have resulted in increased fuel prices, complicating these financial adjustments.
Due to the surge in crude oil prices, particularly following the blockage of the Strait of Hormuz, oil marketing companies in India have already raised premium petrol prices by up to Rs 2.35 per litre.
Increased Platform Fees by Food Delivery Services
Food Delivery Platforms Adjust Fees
Food delivery services have started raising their platform fees, with Swiggy increasing its fee to Rs 17.58 per order, including GST, up from Rs 14.99. Similarly, Zomato has raised its platform fee by Rs 2.40 per order, bringing the pre-GST amount to Rs 14.90. Consequently, customers now pay Rs 17.58 per order, aligning with Swiggy’s new pricing.
These fee increases occur amidst significant disruptions in the food delivery ecosystem. LPG shortages have compelled numerous restaurants, dhabas, cloud kitchens, and street vendors to either reduce their operations or temporarily close, which directly affects order volumes on these platforms.
The Economic Survey for 2025-26 highlighted that income instability, lack of social security, and algorithm-driven work allocation continue to leave many gig workers in precarious situations. It noted that the gig economy has experienced structural growth, transitioning informal jobs into more integrated roles within the ecosystem. The number of gig workers surged from 7.7 million in FY21 to 12 million in FY25, marking a 55% increase over four years.
According to the Economic Survey, gig workers now represent over 2% of India’s total workforce, with non-agricultural gig work projected to constitute 6.7% of the workforce by 2029-30, contributing approximately Rs 2.35 lakh crore to the GDP.