Swiggy and Zomato have temporarily increased pay for delivery agents in India following a nationwide strike called by gig worker unions. The platforms moved quickly to offer higher incentives and relax certain penalties as workers pressed for improved pay, safer working conditions and greater workplace dignity.
India delivery incentives and agent pay
Zomato said it would pay between ₹120 and ₹150 for each order delivered between 6pm and midnight on the specified day. The company also temporarily waived cancellation penalties tied to order rejections or customer cancellations. Swiggy confirmed it would offer enhanced payouts for deliveries on 31 December and 1 January, saying agents could earn up to ₹10,000 over those peak days.
The increases come after a strike called by several unions, including the Telangana Gig and Platform Workers Union (TGPWU) and the Indian Federation of App-based Transport Workers (IFAT). The unions organised the action to demand safer working conditions, better and more predictable remuneration, and greater respect and dignity for gig economy workers.
Delivery agents form a critical part of India’s growing e-commerce and food delivery sector, connecting restaurants and consumers across cities and towns. Platforms have relied on incentive schemes to manage supply and ensure timely service during busy periods. By raising per-order incentives and offering large payouts on peak dates, the companies aim to stabilise supply and placate workers during a period of disruption.
Short-term relief and longer-term questions
While the announced incentives provide immediate financial relief to agents, they address only some of the concerns raised by unions. Increased per-order payments and waived penalties can boost income in the short term, but workers and labour advocates say structural changes are required for sustained improvement. These include clearer employment protections, safer working environments and mechanisms to negotiate pay and conditions.
For the platforms, the decision to raise incentives will carry a cost. Higher payouts and waived penalties reduce margins but may preserve service levels and customer trust during the holiday period. The move also signals how sensitive platform operators are to coordinated labour action and public scrutiny, particularly as gig economy work becomes a more prominent political and regulatory issue.
Impact on consumers and the market
Consumers may notice steadier delivery performance on peak dates, but there is a risk that costs could be passed on through higher commission charges to restaurants or adjusted pricing over time. Regulators and policymakers are watching developments in the gig sector, as labour disputes often prompt debate about how digital-platform work should be regulated to protect workers while preserving flexible earning opportunities.
As New Year demand rises, platforms will be tested on their ability to balance customer expectations with fair treatment of delivery agents. The temporary incentives are likely to ease immediate tensions, but unions have emphasised that further negotiations will be necessary to secure lasting changes for India’s delivery workforce.
Image credit: Manorama Online
Key Takeaways:
- Swiggy and Zomato temporarily increased incentives after a nationwide delivery workers’ strike.
- Zomato offered ₹120–₹150 per order for evening deliveries and waived cancellation penalties.
- Swiggy announced higher payouts for 31 December and 1 January, with agents able to earn up to ₹10,000 on peak days.
- The action follows demands by unions for better pay, safer working conditions and greater dignity for gig workers.
