India’s rapidly expanding gig economy faces unprecedented regulatory challenges as the government implements a ban on ultra-fast 10-minute delivery services. This decisive action follows massive New Year’s Eve strikes involving approximately 200,000 delivery workers who demanded improved working conditions, transparent wage structures, and an end to algorithmic control systems that govern their employment.
The controversial 10-minute delivery model, pioneered by startups like Zomato, Swiggy, Blinkit, and Instamart, had become synonymous with urban convenience in major Indian cities. These platforms transformed consumer expectations during the pandemic, creating an entire ecosystem of instant gratification for groceries, food, and various services.
Worker grievances extend beyond delivery time pressures to fundamental issues of fair compensation and job security. Striking employees specifically challenged what they describe as arbitrary algorithmic management of performance ratings and contract terminations, seeking greater transparency in how their earnings are calculated.
The government’s intervention coincides with impending labor reforms that will extend social security protections to gig workers for the first time. New regulations requiring platforms to provide insurance coverage and benefits for workers completing 90 days of service annually represent a seismic shift in India’s labor landscape.
Platform executives have mounted vigorous defenses of their business models. Deepinder Goyal, CEO of Eternal (parent company of Zomato and Blinkit), asserted that the 10-minute delivery framework operates safely through strategic dark store placement rather than rider speeding. He presented data showing 75 million orders delivered to 63 million customers on New Year’s Eve despite strike actions, which he attributed to “miscreants.”
Goyal emphasized the voluntary nature of gig work, noting that delivery personnel typically work limited hours and days monthly. He contended that full-time workers can earn approximately 21,000 rupees monthly (£173, $232), surpassing compensation in India’s informal blue-collar sector.
However, critics argue these figures obscure hidden costs borne by workers, including onboarding expenses, vehicle maintenance, fuel, and uniform purchases. Research from Primus Partners indicates that 61% of gig workers consider themselves full-time employees, with only 25% receiving insurance or pension benefits.
The financial implications for platforms are substantial. Companies already operating on thin margins (2.5-4.5% for food delivery, negative returns on groceries) face increased operational costs from compliance with new welfare requirements. Stock prices have reflected these concerns, with Swiggy declining approximately 15% recently.
This confrontation mirrors global trends where jurisdictions from London to Singapore have strengthened gig worker protections. The outcome will shape not only working conditions for India’s 12 million gig workers (projected to reach 24 million by 2030) but potentially increase consumer costs for delivery services as platforms adjust to regulatory changes.