India’s online food and grocery delivery platforms are entering a critical period as the government bans ultra-fast 10-minute deliveries following massive worker strikes, marking a significant shift towards increased regulation of the gig economy. This development comes amid rising tensions between platform companies, gig workers, and policymakers, with implications for consumer costs and the future of work in one of the world’s fastest-growing digital markets.
Last week, the Indian government directed e-commerce companies to cease 10-minute deliveries, a move that follows a strike by approximately 200,000 gig workers on New Year’s Eve. The workers, organized by trade unions, demanded minimum wages, transparency in pay calculations, a ban on the 10-minute delivery model, and an end to arbitrary algorithmic control over ratings and contract terminations. This strike highlighted the growing discontent among delivery personnel who form the backbone of apps like Zomato, Swiggy, Blinkit, and Instamart, which have become integral to urban life in India since the pandemic.
The government’s intervention coincides with new labor rules set to take effect this year, bringing gig work under formal labor laws for the first time. These regulations include insurance coverage and social security protections for workers who complete 90 days on platforms annually, imposing additional costs on companies that have previously operated with minimal oversight. Platform executives argue that over-regulation could stifle an industry that employs 12 million gig workers and is expected to double by 2030, but unions counter that better protections are essential for worker welfare.
In response to the strikes, Deepinder Goyal, founder of Zomato and its parent company Eternal, defended the platforms’ practices in social media posts, asserting that record order volumes on New Year’s Eve demonstrated resilience. He claimed that 10-minute deliveries are safe due to investments in dark stores rather than reckless speeding, and highlighted benefits like insurance and pension access. Goyal also noted that full-time workers can earn around 21,000 rupees monthly, surpassing wages in India’s informal economy, though critics dispute this by pointing to hidden costs like vehicle expenses and inflexible work conditions.
Experts warn that the gig economy in India faces unique challenges, as many workers rely on these jobs as full-time careers due to limited alternatives in manufacturing or other sectors. A survey by Primus Partners found that 61% of gig workers consider themselves full-time employees, with only a minority having insurance or pension benefits, risking a ‘missing middle’ in the workforce. This contrasts with Western contexts where gig work is often a side hustle, underscoring the need for policies that balance growth with social safeguards.
Financially, platforms are under pressure as stock prices for companies like Swiggy have dropped, and HSBC research indicates thin profit margins of 2.5-4.5% on food delivery. The new social security laws and potential wage increases could further squeeze profitability, with analysts like Karan Taurani of Elara Capital predicting a challenging year ahead. Investors are wary, and some opposition politicians have vowed to support worker demands, suggesting that more strikes could occur if negotiations stall.
Globally, gig worker protections have strengthened in recent years, with courts in places like London ruling for minimum wages and holiday pay, and Asian countries enacting similar laws. In India, this trend is accelerating, but platforms resist changes that might raise operational costs. As the debate intensifies, consumers may face higher delivery fees, potentially reshaping the convenience-driven market that has flourished in urban centers.
Looking forward, the conflict between platforms, workers, and regulators is likely to define 2026 for India’s delivery sector. With unions threatening further action and policymakers grappling with economic implications, the outcome could set precedents for gig work across Asia. The reckoning highlights broader questions about job quality and economic mobility in the digital age, making this a pivotal moment for India’s evolving labor landscape.
