Zomato and Swiggy Increase Payouts for Delivery Partners Amid Strike Threat
Incentives Offered to Delivery Workers
In response to a potential strike by gig workers on New Year’s Eve, food delivery services Zomato and Swiggy have announced an increase in incentives for their delivery personnel. This move aims to minimize service disruptions during the festive period, as reported by various news sources.
According to the companies, offering such incentives during holidays is a common practice.
Multiple unions, including the Indian Federation of App-based Transport Workers and the Gig and Platform Service Workers Union, urged workers from quick e-commerce platforms to refrain from logging into their apps on Wednesday, advocating for reforms within the gig economy.
The workers are pushing for the inclusion of platform companies under labor regulations, a prohibition on unsafe '10-minute' delivery practices, an end to arbitrary account suspensions and fines, fair wages, social security, and the right to organize and negotiate collectively.
The strike on Wednesday impacted operations for companies like Zomato, Swiggy, Blinkit, Instamart, and Zepto in various cities, as reported by a leading news outlet.
During the strike call, Zomato proposed payouts ranging from Rs 120 to Rs 150 per order during peak hours from 6 PM to midnight on New Year’s Eve. The platform also indicated that delivery partners could earn up to Rs 3,000 throughout the day, depending on order volume and availability of workers.
Additionally, Zomato temporarily suspended penalties for order cancellations and denials, according to sources.
A spokesperson from Eternal Limited, the parent company of Zomato and Blinkit, clarified that these incentives are part of their regular annual operating procedures during festive seasons, which typically see a surge in demand.
Swiggy has also rolled out similar incentives for the year-end period, allowing delivery partners to earn up to Rs 10,000 between December 31 and January 1. The platform highlighted peak-hour earnings of up to Rs 2,000 for the six-hour window from 6 PM to midnight on New Year’s Eve.
This strategy aims to ensure sufficient rider availability during one of the busiest ordering times of the year, with increased payouts being a standard practice during such occasions.
As of Tuesday night, over 170,000 delivery and app-based workers across India had confirmed their participation in the protest, according to statements from the Telangana Gig and Platform Workers’ Union and the Indian Federation of App-Based Transport Workers.
The unions had previously organized a strike on December 25 as well.
In a joint statement, the unions indicated that the December 25 strike, which saw many delivery workers log off, served as a significant warning to platform companies regarding declining earnings, unsafe delivery pressures, and a loss of dignity in the workplace. They expressed disappointment over the companies' lack of response, stating that the absence of dialogue or assurances on safety and working conditions made the Wednesday strike necessary.