Outlining 3 core challenges faced by gig workers, Chadha pointed delivery-time targets, customer harassment and hazardous working conditions
Chadha also underlined that while quick commerce platforms had achieved billion-dollar valuation because of these gig workers
Morgan Stanley estimates that Zomato could incur an additional annual cost of roughly INR 128 Cr to INR 213 Cr, while Swiggy will take an annual hit of INR 132 Cr to INR 220 Cr
Aam Aadmi Party (AAP) member of parliament (MP) Raghav Chadha today called for a ban on quick commerce deliveries.
Raising the issue during the Zero Hour of the Parliament, Chadha termed quick commerce deliveries as “cruelty”, adding that gig workers were risking their lives under extreme pressure to deliver orders in under 10 minutes.
Outlining three core challenges faced by such gig workers, Chadha noted that the pressure of delivery-time targets, customer harassment and hazardous working conditions were pushing riders to make dangerous choices.
“A delivery boy standing on the red light keeps thinking that if he is late, the rating will fall, the incentive will be cut, the app will log out, and the ID will be blocked,” he said. The AAP MP added that this fear was driving delivery drivers to overspeed or jump signals just to safeguard their earnings.
He also pointed out that a delay of “even a few minutes” could trigger scolding, threats and one-star ratings from customers, which could potentially dent a worker’s monthly income.
On the working conditions of gig workers, he added that despite working 12–14 hours a day in harsh weather, gig workers lacked basic protections like permanent employment, safety gear, hazard allowance, and health or accident insurance.
Chadha also underlined that while quick commerce platforms had achieved billion-dollar valuation because of these gig workers, the condition of delivery riders remained “worse” than that of daily wage labourers.
The development comes at a time when the government is already rolling out new labour reforms for gig workers.
The newly introduced norms extend schemes like provident fund (PF) and insurance to gig, platform and unorganised workers. Under the new regime, aggregators will be required to contribute 1–2% of their annual turnover, capped at 5% of payouts to gig workers, for a new welfare fund for gig workers.
Amid this backdrop, Morgan Stanley estimates that Zomato could incur an additional annual cost of roughly INR 128 Cr to INR 213 Cr, while Swiggy will take an annual hit of INR 132 Cr to INR 220 Cr, as per their FY25 volumes.
While the Centre has touted the new rules as a safety net for gig workers, labour unions led by opposition parties are protesting these provisions, saying that the new labour code makes hire-and-fire policies easier for enterprises.
Notably, the new code has increased the threshold for government approval for layoffs to companies with 300 employees from 100 earlier.
Nevertheless, gig workers have protested for years to seek statutory definitions of “gig” and “platform workers” and their inclusion in welfare schemes.
Meanwhile, state governments like Telangana, Rajasthan and Karnatakain the past year, have come up with legislations to protect the interests of gig workers, including provisions for the setting up of welfare funds.
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