New Delhi1 hour ago
- copy link
Platforms like Zomato, Swiggy and Blinkit may face difficulties on the evening of 31st December. Telangana Gig and Platform Workers Union (TGPWU) and Indian Federation of App-Based Transport Workers (IFAT) have called a strike on New Year Eve.
The strike has also received support from regional organizations of Maharashtra, Karnataka, Delhi-NCR, West Bengal and Tamil Nadu. Union leaders claim that in support of this strike, more than 1 lakh delivery workers will either log out of the app or do very little work.
Karan Taurani, executive vice president of Elara Capital, says gig workers earn more these days, so many may choose to work despite the strike.
Delivery partners and riders have been on strike for a long time with their demands.
5 reasons for gig workers strike
There is no single reason behind this strike of delivery partners and riders, but there are many long standing complaints. According to union leaders and experts, the main reasons are:
1. Lack of social security and welfare funds
The biggest demand of gig workers is social security. Despite government rules, in many states these workers are still not getting facilities like pension, health insurance or PF.
2. Falling earnings and cut in incentives
Initially, companies used to give more incentives to delivery partners. They have now been reduced. Earlier we used to get ₹40 to ₹60 per order. Now it has come down to between ₹15 to ₹25.
3. Poor working conditions and pressure of 10-minute delivery
In quick commerce apps like Blinkit, Zepto, there is pressure to deliver within 10-12 minutes. Workers allege that due to this the risk of them having an accident has increased.
4. Arbitrary ID blocking
A major complaint of gig workers is that companies block their IDs without any prior notice or concrete reason. Due to this they suddenly lose their employment.
5. Legal status of gig worker
At present these workers are called ‘partners’ of the companies, not ’employees’. Through the strike it is being demanded that they should be considered formal employees.
No impact of strike expected on e-commerce companies
The strike will have the biggest impact on food delivery and quick commerce apps. The impact on e-commerce companies is expected to be minimal.
Earlier, about 40,000 workers had participated in the strike on December 25 (Christmas). Due to this, about 60% of deliveries were affected in some cities.
Why is there more impact on food delivery?
According to analysts, food delivery and quick commerce platforms are more dependent on local delivery partners. Whereas in e-commerce the backup system of delivery network is strong.
Orders may fall by 20% in big cities of South India
According to Karan Taurani, the impact of the strike can be seen mainly in the metro cities of South India. There may be a 10 to 20% decline in order volume in these cities.
However, if seen at the nationwide level, the strike on 25th and 31st December is expected to impact only 0.3% to 0.7% on the total revenue of delivery platforms.
Source link
[ad_3]
