CHENNAI: Food delivery platforms Zomato and Swiggy have announced higher payouts and special incentives for delivery partners as they prepare for possible service disruptions on New Year’s Eve following a strike call by gig worker unions. The move comes as delivery workers across several cities have been urged to log out of apps on December 31, one of the busiest days of the year for food and quick-commerce deliveries, in protest against pay structures and working conditions in the gig economy.
The strike call follows similar action taken during the Christmas period and reflects growing dissatisfaction among delivery workers over fluctuating earnings, rising fuel and maintenance costs, and the absence of social security benefits. Unions representing gig and platform workers have said that temporary incentives offered during peak periods do not address their core demands, which include more transparent pay calculation, minimum earnings assurance, accident insurance, health coverage and an end to delivery timelines that they say compromise rider safety. Workers have also raised concerns about penalties linked to order cancellations, ratings and algorithm-driven performance metrics that can sharply affect their income.
In response to the strike threat, Zomato has informed its delivery partners that it will offer significantly higher per-order payouts during peak evening hours on New Year’s Eve, when demand is expected to surge. The company has also eased certain operational penalties for the day, aiming to encourage more riders to stay logged in and accept orders. Swiggy has similarly rolled out enhanced incentives, highlighting the potential for substantially higher daily earnings for delivery partners who remain active during the New Year period. These measures are designed to ensure adequate rider availability and minimise delays or cancellations during a time when customers traditionally place a high volume of orders for home celebrations.
Industry executives say such incentive-led strategies are often deployed during festivals and major events, when platforms compete not only for consumer demand but also for the availability of delivery workers, many of whom operate across multiple apps. However, union representatives argue that these short-term payouts are a stopgap solution and do little to resolve long-standing structural issues. They maintain that without clearer employment protections and predictable earnings, dissatisfaction among gig workers is likely to persist, regardless of periodic bonuses.
The situation has put customers and restaurants on alert, with the possibility of slower deliveries or temporary service disruptions in some areas if a large number of workers participate in the strike. Restaurants that rely heavily on app-based orders during the festive season are watching developments closely, while platforms are working to balance rider supply and demand in real time.
The standoff highlights broader tensions within India’s rapidly expanding gig economy, where platform-driven growth has outpaced the evolution of labour protections. While the increased payouts announced by Zomato and Swiggy may help cushion operations on New Year’s Eve and keep deliveries moving, they also underscore the fragility of a system that depends on incentives to manage peak demand. As the year ends, the episode reflects unresolved questions about fair compensation, worker security and the future framework governing millions of gig workers in the country.