Zomato and Swiggy Increase Payouts for Gig Workers Amid Strike Calls

In New Delhi, food delivery services Zomato and Swiggy have announced increased payouts for their delivery partners as New Year's Eve approaches, following a call for a nationwide strike by various gig workers' unions. This initiative is characterised by the companies as a 'standard festive protocol' intended to mitigate service interruptions during one of the year's busiest ordering periods.

The announcement comes amidst growing unrest among gig workers, with unions such as the Telangana Gig and Platform Workers' Union (TGPWU) and the Indian Federation of App-Based Transport Workers (IFAT) planning a strike on December 31. The unions are advocating for improved earnings, safer working conditions, and increased respect in the workplace.

Incentives for Delivery Partners Zomato revealed that it will offer its delivery personnel between ₹120 and ₹150 per order during peak hours, specifically from 6 PM to midnight on New Year's Eve. Furthermore, the company indicated that workers could potentially earn up to ₹3,000 in total for the day, depending on the volume of orders and their availability. To encourage participation, Zomato has also temporarily waived penalties for refused or cancelled orders.

A spokesperson from Zomato commented, "This is part of our standard annual operating protocol during festive periods, which typically see higher earning opportunities due to increased demand."

Similarly, Swiggy is enhancing its incentives for delivery partners during this time. The platform has set potential earnings at up to ₹10,000 across December 31 and January 1, with peak-hour earnings reaching as much as ₹2,000 for the same six-hour window.

Strike Action Planned The strike, which has garnered significant attention, was announced by the TGPWU and IFAT. In a joint statement, the unions disclosed that more than 170,000 delivery workers across India have confirmed their participation, with expectations for this number to rise throughout the day. They cautioned that operations of key food delivery services, including Zomato, Swiggy, Blinkit, Instamart, and Zepto, could face significant disruptions on one of the most hectic days of the year.

The unions expressed their dissatisfaction over declining earnings and increasing work pressure, stating that the December 31 strike follows a previous action on December 25, when numerous delivery workers ceased operations. They highlighted that the December 25 protest was a warning to platform companies about the adverse effects of reduced earnings and the relentless pressure to deliver quickly.

Key Issues Raised by Workers Shaik Salauddin, president of the TGPWU, emphasised the unsafe pressure that the fast-delivery model imposes on workers. He noted that changes in payment structures have led to diminished earnings. "Our demand to the platform companies was that our old payout structure be reinstated and that the 10-minute delivery option be removed from all platforms," he stated. Salauddin articulated that the workers have presented five crucial demands to the platforms, which include the restoration of previous payout structures that were in effect during major festivals.

Government Response In response to the ongoing situation, Telangana's Labour Minister Vivek Venkatswamy announced the approval of the Gig and Platform Workers Welfare Bill, 2025. In a video message posted on the social media platform X, he stated, "Gig workers are suffering due to the increasing aggressiveness of aggregators… over time, their income levels have come down while work pressure has increased. The 10-minute delivery system has added further pressure on them."

As the New Year's Eve strike approaches, it remains to be seen how both the delivery platforms and the unions will navigate this pressing issue, especially during a peak period for food delivery services.