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Government clamps down on 10-minute delivery promise
The Indian government has ordered e-commerce platforms to abandon their 10-minute delivery guarantees, marking a major shift in the country's booming quick-commerce sector. The directive follows a New Year's Eve strike by approximately 200,000 gig workers, who demanded fair wages, safer working conditions, and an end to what they describe as exploitative algorithmic controls.
Strike highlights deep divide over gig economy
Delivery workers, the backbone of apps like Zomato, Swiggy, Blinkit, and Instamart, walked off the job on December 31, 2025, protesting low pay, lack of transparency in wage calculations, and arbitrary contract terminations. The strike brought together trade unions, opposition politicians, and workers against start-up founders and venture capitalists, who argue that overregulation could stifle an industry that has become a critical source of employment in India.
The gig workforce in India currently stands at 12 million and is projected to double by 2030, making it one of the fastest-growing segments of the labor market. However, workers say the sector's rapid expansion has come at a cost, with many facing precarious working conditions, no job security, and minimal social protections.
New labor laws add pressure on platforms
The government's move to ban ultra-fast deliveries coincides with the implementation of new labor regulations that bring gig workers under the ambit of formal protections for the first time. Starting this year, workers who log 90 days on platforms annually will be entitled to insurance coverage and social security benefits. While the reforms aim to improve worker welfare, they also impose additional financial burdens on companies already operating on thin margins.
Shares of major players have taken a hit amid the uncertainty. Swiggy's stock has fallen by 15% over the past month, while Eternal, the parent company of Zomato and Blinkit, has seen its valuation stagnate. Analysts warn that rising operational costs, coupled with inflationary pressures, could make 2026 a challenging year for the sector.
Founders defend model amid backlash
Deepinder Goyal, CEO of Eternal, pushed back against criticism in a series of posts on X (formerly Twitter) earlier this month. He argued that his platforms delivered a record 75 million orders to 63 million customers on New Year's Eve, despite the strike, and dismissed claims that the 10-minute delivery model was unsafe. Goyal attributed the speed to the density of dark stores-small warehouses strategically located near delivery zones-rather than reckless driving by workers.
"If a system were fundamentally unfair, it would not consistently attract and retain so many people who choose to work within it."
Deepinder Goyal, CEO of Eternal
Goyal also highlighted that platforms already offer some social security protections, including insurance, rest days, and access to pension schemes. He noted that most delivery workers operate part-time, with an annual attrition rate of 65%, suggesting the job is not a long-term career for many. Those who work full-time, he claimed, can earn around 21,000 rupees (£173, $232) per month-higher than wages in India's informal sector or entry-level formal jobs.
Critics question sustainability of gig work
Labor advocates and researchers dispute Goyal's claims, arguing that the numbers mask hidden costs borne by workers. Many gig workers incur expenses for uniforms, vehicles, and fuel, while incentive structures often prioritize speed over safety, penalizing delays or order refusals. Critics also challenge the notion that gig work is a voluntary choice, framing it as a product of economic desperation in a country with limited stable employment opportunities.
"Such work often represents economic desperation rather than genuine choice."
Kasim Saiyyad, PhD candidate at Cornell University
A recent survey by consulting firm Primus Partners found that 61% of gig workers in India consider themselves full-time employees, with many in their 20s viewing these jobs as long-term careers. However, only one in four has access to insurance or pension benefits, raising concerns about the creation of a "missing middle"-a large segment of the workforce that drives consumption but remains excluded from stability and economic mobility.
Global trends and future outlook
India's gig economy debate mirrors global shifts, as governments worldwide tighten regulations to protect platform workers. In 2021, a London court ruled that Uber drivers were entitled to minimum wage and holiday pay. Singapore and Malaysia have also introduced legislation to improve pay transparency and worker rights. In India, opposition politicians have vowed to champion gig workers' demands both in parliament and through public advocacy.
Union leaders have warned of further strikes if platforms refuse to engage in negotiations. Meanwhile, analysts predict that consumers may ultimately bear the cost of higher wages and social protections through increased delivery fees. As the battle between workers, companies, and policymakers intensifies, the future of India's gig economy hangs in the balance.
