India’s labor ministry has asked major quick-commerce companies to change how they market ultra-fast deliveries and to address safety and working conditions for gig workers, as protests and regulatory scrutiny intensify across the sector.
Labor Ministry Meetings With Quick Commerce Firms
India’s minister of labor and employment, Mansukh Mandaviya, recently met with executives from Blinkit, Instamart, and Zepto, according to a Bloomberg report citing anonymous sources. During the meetings, Mandaviya urged the companies to drop marketing language that promises deliveries within 10 minutes and to focus instead on improving the wellness and safety of delivery workers.
The discussions involved Blinkit, which is owned by Zomato, as well as Instamart, the quick-commerce arm of Swiggy, and Zepto.
Rapid Growth Of Instant Delivery In India
While ultra-fast delivery models have struggled in other markets, they have expanded rapidly in India over the past few years. Consumers in major urban centers have grown accustomed to receiving items ranging from groceries to electronics such as PlayStation 5 consoles within 10 to 15 minutes.
To support this demand, companies including Zepto, Blinkit, and Instamart have raised and invested hundreds of millions of dollars to build networks of “dark stores,” which are small, strategically placed warehouses that serve nearby neighborhoods. The firms have also significantly expanded their delivery workforces as competition in India’s e-commerce sector has intensified.
Worker Protests And Safety Issues
As the sector has grown, pressure on delivery workers has increased. On New Year’s Eve, more than 200,000 gig workers protested across major Indian cities during peak delivery hours, according to the South China Morning Post, citing the Indian Federation of App Based Transport Workers.
The protesting workers called for legislative protections, social security benefits, higher wages, and changes to automated penalty systems that can lower worker ratings for delayed deliveries. Safety concerns have also emerged as workers rush through traffic to meet tight delivery timelines.
Prabir Jha, founder and chief executive of Prabir Jha People Advisory, told the South China Morning Post that delivery models promising 10 to 15 minute fulfillment materially increase the risk and stress associated with gig work.
Changes To Delivery Messaging
Following pressure from worker protests and discussions with the labor ministry, Blinkit has removed messaging that advertised 10-minute deliveries, Bloomberg reported. Rival platforms are also expected to make similar changes to their marketing language.
Regulatory Context And Gig Economy Growth
The ministry’s push comes just over a month after India introduced new labor laws granting legal status to millions of gig and platform workers. The legislation formally defines gig and platform workers and requires aggregators, including food delivery and ride-hailing companies, to contribute between 1 percent and 2 percent of their annual revenue to a government-managed social security fund. These contributions are capped at 5 percent of the total payments made to gig workers.
India’s gig economy employed an estimated 7.7 million workers in the 2020–21 fiscal year and is projected to grow to 23.5 million workers by 2029–30, according to NITI Aayog.
Featured image credits: Pexels
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