GS 2: GovernanceGS 3: EconomyGS 2: Social Justice

Govt tells quick commerce firms to drop '10-min delivery' deadline, Pg1

Labour Ministry directs quick commerce firms to abandon '10-min delivery' amid concerns over gig workers' exploitation and precarious conditions.

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Key Highlights:

  • The Ministry of Labour and Employment has directed quick commerce firms like Blinkit, Swiggy, and Zomato to remove the "10-minute delivery" deadline.
  • Blinkit has already removed the 10-minute delivery promise from its branding following the directive.
  • A survey of delivery workers reveals earnings of approximately Rs 34 per hour after fuel costs, which is below minimum wage standards.
  • Delivery workers face issues like low base pay (Rs 35-Rs 55 per order), penalties for rejecting orders, and lack of social security benefits.

Detailed Insights:

  • The intervention follows concerns about the working conditions of gig workers, including pressure to meet tight deadlines, potentially leading to traffic violations.
  • Gig workers often bear financial, physical, and psychological costs, including vehicle maintenance, phone bills, and the strain of navigating traffic.
  • Algorithmic systems nudge workers to accept more orders and cover longer distances, contributing to precarious earnings.
  • New labour codes legally recognize platform workers and provide access to schemes covering health, disability, accident insurance, and old-age support.
  • Companies will contribute 1-2% of their annual turnover towards a fund for worker benefits, capped at 5% of the amount payable to the workers.
  • Delivery workers often navigate through parallel infrastructures, such as service lifts and back-door entrances, unseen by the customers they serve.
  • The gig economy operates on a premise of direct transaction and immediate payment, with no recognition or compensation for extra effort.

Key Concepts Involved:

  • Gig Economy: A labor market characterized by short-term contracts or freelance work as opposed to permanent jobs.
  • Platform Workers: Individuals who use online platforms to provide services and earn income.
  • Social Security: Government programs that provide economic assistance to individuals and families in need.
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