Gig workers' strike exposes the hard limits of India's quick commerce model

The year-end strike by a section of gig and platform workers over remuneration and work conditions presents quick-commerce and food-delivery firms with an opportunity to re-align their business models. Gig workers’ demands are basic; they range from fair and transparent wages, a ban on 10-minute delivery models, and an alignment of pay and benefits in line with the recently notified labour Codes. The need for employers to respond is becoming increasingly urgent, given the rapid expansion of quick commerce over the past few years and the expected surge in demand for gig and platform workers. The NITI Aayog has estimated the number of workers employed in sectors such as ride-sharing, delivery, logistics, and professional services has touched 10 million and could rise to 23 million by 2029-30. In other words, this segment has the potential to become a significant source of youth employment. Yet it is becoming increasingly obvious that their work conditions can scarcely be considered optimal.

 

First, quick commerce is increasingly becoming a business model predicated on breaking traffic rules. The competitive scramble to reach consumers has resulted in an incentive structure that forces delivery partners to drive at breakneck pace, ignore traffic rules, and endanger not only themselves but also the general public. There are no national statistics available to substantiate the link between delivery deadlines and road safety, but the problem has been serious enough for the Bengaluru police to take note and conduct training programmes for delivery people. The city police acted after it noticed a marked uptick in bookings and fines against delivery partners for reckless driving. Gig workers’ demand that these deadlines be scrapped is not, therefore, without merit.

 

Second, a survey conducted between September 1 and 30 last year revealed a wide gap between gig workers and permanent employees; 47 per cent of the respondents said gig workers were paid 10-25 per cent less. Other surveys have highlighted that gig workers live on the edge. Despite working long hours — as much as 16 hours a day — many gig workers earn below minimum wages after accounting for costs such as fuel and platform commissions. They lack basic medical and social-security benefits, as a result of which an illness or (increasingly likely) an accident can wipe out their meagre earnings. A NITI Aayog survey in 2024 revealed that 90 per cent of gig workers lacked savings. Platform practices such as disconnecting workers who take days off add to the volatility of their earnings. In response to the strike threat, some aggregators increased incentive payouts during Christmas and the year-end.

 

This cannot be considered a sustainable solution to an endemic problem. Now, the labour Codes, effective November 21 last year, formally extend welfare, and accident and health benefits to gig workers, mandate that aggregators contribute 1 to 2 per cent of their annual turnover to a dedicated social-security fund that workers can access once they register on a national digital platform, and restrict the work week to 48 hours. All of this will require quick-commerce firms and aggregators to recalibrate cost and incentive structures. In an industry that remains largely unregulated, the real challenge for the government is ensuring that these relatively humane work conditions are followed.