In a preemptive move ahead of a planned strike by gig worker unions, leading food delivery platforms Zomato and Swiggy have announced increased payouts for their delivery partners for New Year's Eve. The strike call, issued by several unions representing delivery executives, aimed to protest against low base pay and demanding better working conditions during the peak holiday season.
Platforms Respond with Incentive Hikes
According to communications reviewed, both companies have rolled out enhanced incentive structures for December 31. Swiggy informed its delivery partners in cities like Delhi-NCR, Mumbai, Bengaluru, and Hyderabad about a significant increase in pay per order. The company stated that delivery executives could earn up to three times their usual rate for orders delivered during specific peak hours on New Year's Eve.
Similarly, Zomato's food delivery service has also communicated a revised payout plan. The company is offering special bonuses and surge incentives to ensure adequate delivery partner availability to meet the expected high demand. A Zomato spokesperson emphasized their commitment to providing a rewarding experience for their delivery partners, especially during high-volume periods.
The Union Demands Behind the Strike Call
The strike call was not an isolated event but a culmination of ongoing grievances. Unions, including the Indian Federation of App-based Transport Workers (IFAT) and others, had outlined a list of core demands. Their primary concerns included:
- Inadequate base fare: Arguing that the current pay per order does not fairly compensate for time, distance, and expenses.
- Lack of social security: Demanding access to benefits like accident insurance, health coverage, and paid leave.
- Opaque incentive structures: Calling for more transparency in how bonuses and surge pricing are calculated.
- Unfair penalties: Protesting against what they deem as disproportionate deductions for order cancellations or delays.
The unions had strategically chosen New Year's Eve, one of the busiest nights for food delivery, to amplify the impact of their protest and draw attention to their cause.
Will the Increased Pay Avert the Strike?
While the increased payouts are a direct response to the strike threat, it remains unclear if they will fully satisfy the unions' broader demands. The enhanced incentives appear targeted at the immediate peak day rather than addressing systemic issues like base pay or social security.
Industry observers note that this move highlights the precarious balance between platform profitability, consumer pricing, and gig worker remuneration. The food delivery sector relies heavily on a flexible workforce, but consistent demands for better pay and conditions are bringing the sustainability of this model into sharper focus.
The coming days will reveal whether the sweetened offers for December 31 are enough to ensure smooth operations or if significant disruptions will occur due to the strike. The situation underscores the growing collective voice of India's gig workforce and their increasing willingness to negotiate for better terms, especially during critical demand periods.
