Shares of Swiggy Ltd. and Eternal Ltd., which manage Instamart and Zomato and Blinkit respectively, experienced a recovery from their lowest points of the day after government intervention encouraged them to suspend their 10-minute delivery service for the benefit of gig workers. On Tuesday, Swiggy’s stock price initially dropped by 1.08% but ended the day with a slight gain of 0.43%. In contrast, Eternal’s shares rose significantly by 3.24%. The broader market saw the S&P BSE Sensex decrease by 0.30% during the same period.
Labour Minister Mansukh Mandaviya held a meeting with representatives from quick-commerce firms to address concerns regarding the increasing pressure on gig workers and their stressful working conditions. During the discussions, he urged the companies to suspend their 10-minute delivery services, and they have reportedly agreed to this request. This development occurs amidst a broader public discourse on the working conditions of gig workers and as India moves toward implementing a new labour code.
A recent review of the Blinkit app reveals that the company has eliminated its 10-minute delivery promise from its branding. The tagline has been changed from “10,000 plus products delivered in 10 minutes” to “30,000 plus products delivered at your doorstep.” This decision is anticipated to be mirrored by other delivery aggregators soon, as it aims to enhance safety, security, and working conditions for gig workers.
The recent discussion regarding gig workers’ working conditions, particularly surrounding the concept of “10-Minute Delivery,” follows India’s implementation of four new labour codes, including one specifically designed for the gig economy. The Code on Social Security, 2020, establishes clear definitions for gig workers and their employers, outlining that a gig worker operates outside the traditional employer-employee relationship. In this context, a platform worker delivers services through online platforms, while an online aggregator acts as an intermediary between the service provider and the customer. These definitions pave the way for potentially extending welfare benefits to around 400 million workers in the unorganised sector.
Under the Code on Social Security, 2020, aggregators must contribute 1-2% of their annual turnover to the social security of the gig workers they employ, with a cap of 5% of the total amount paid or payable to these workers. This regulation shifts the responsibility of providing basic social security onto the companies that benefit from the services of gig workers.