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Indian Express
28-05-2025
- Business
- Indian Express
Zepto workers' strike: In India's gig economy, the continuing struggle for dignity
In the past week, hundreds of Zepto delivery workers in Hyderabad have gone on an indefinite strike. Their demands are basic: Fair pay, decent working hours, social security, and dignity. These are not new demands, nor are they unreasonable. Coordinated by the Telangana Gig and Platform Workers' Union (TGPWU), the strike follows a growing pattern of worker unrest across India's platform economy — from Blinkit to Swiggy — where the promise of entrepreneurial freedom has worn thin under the weight of wage theft, surveillance, and hyper-precarity. In Delhi, 50 Zepto workers recently filed a complaint alleging they were lured from rural areas with promises of ₹30,000 per month, free food, and accommodation. Upon arrival, they faced substandard living conditions, pay cuts, and withheld wages. Zepto has since responded with a familiar script: Distancing itself from the workers through legalistic disavowals. 'We are a technology platform,' the company claims. 'Vendors are responsible for hiring and payment.' This arm's-length logic is by design. It allows platforms to maintain granular algorithmic control — via GPS tracking, performance ratings, and app-based scheduling — while denying any legal responsibility as employers, as has been documented by People's Union for Democratic Rights' Report 2021. Meanwhile, Zepto Cafe pausing services in some locations, thereby affecting 44 stores and 700 gig workers, shows platform capital treats labour as disposable — plugged into the supply chain when needed, discarded when not. It's not just a pause; it's the logic of exploitation in motion. These are not isolated incidents of corporate malfeasance. They reveal something far more structural: The hollowness of India's legal and policy framework for gig and platform workers. Despite repeated gestures toward recognition — most recently in the Union Budget 2025 and the Code on Social Security, 2020 — India's gig and platform workers remain in a zone of legal abandonment. The Zepto strike shatters the illusion that formal recognition in law translates into material rights. State as database manager, not protector The contradictions in India's approach to platform labour are stark. In 2008, the Unorganised Workers' Social Security Act was passed to provide a basic welfare framework for workers outside the formal economy. It defined 'unorganised workers' broadly enough to arguably include gig workers. Yet, when Senior Advocate S Muralidhar recently appeared before the Supreme Court on behalf of the Indian Federation of App-Based Transport Workers (IFAT), the petition did not even seek relief — it sought a mere clarification. Do gig workers fall under the Act's scope? The fact that this question still lacks a definitive legal answer reveals the abyss in which workers are suspended. The 2020 Code on Social Security was hailed as a breakthrough: It was the first time 'gig and platform workers' were defined in Indian law [Section 2(35) and 2(61), respectively]. Yet this recognition remains inert. The Code has never been notified, which means it has no legal force. Meanwhile, the government insists that schemes under the Code are 'being formulated.' This formulation has now been 'ongoing' for over four years. Under the Code on Social Security, 2020, two key schemes were envisioned for gig and platform workers: National Social Security Board for Gig and Platform Workers: A body meant to recommend and oversee social security schemes for gig workers without ensuring universal social security for platform workers. Voluntary Registration and Contribution-Based Welfare: The Code allows for workers to self-register on a central portal. Aggregators (platform companies like Zepto, Swiggy, Ola, etc.) are expected to register their workers on the e-Shram portal. Upon registration, platform workers will receive a Universal Account Number (UAN), which will allow them access to key social security benefits. The e-Shram portal, introduced in 2021, was supposed to be a central database for unorganised workers, including gig workers. But data without rights is surveillance, not welfare. Registration has not translated into healthcare, accident insurance, or pension. The machinery of welfare exists on paper but is void of substance. The contradiction is clear: Gig workers are visible enough to be surveyed, counted, and claimed as beneficiaries in policy announcements. But they remain invisible in enforcement, excluded from labour protections, and denied bargaining rights. Beyond welfare: The struggle for power Despite the Centre's inaction, certain states have begun experimenting with more robust protections for gig and platform workers — signaling that labour governance may be forced from the margins inward. In 2023, Rajasthan enacted the Platform-Based Gig Workers (Registration and Welfare) Act, mandating the creation of a welfare board and compelling platforms to contribute to a dedicated welfare fund. Karnataka followed in 2024 with the Karnataka Platform-Based Gig Workers (Social Security and Welfare) Bill, proposing a welfare cess ranging from 1 per cent to 5 per cent on each transaction or payout made by platforms to gig workers. The state government aims to operationalise the gig workers' welfare fund by August 2025. These subnational laws reflect growing political recognition of gig workers as a distinct labour constituency — one increasingly vocal, organised, and electorally visible. Yet their success depends on implementation, especially amid pushback from industry lobbies and jurisdictional ambiguities over labour regulation in a federal setup. Nonetheless, these initiatives challenge the Centre's narrative of policy sufficiency and demonstrate that meaningful recognition can — and must — begin with redistributing control, not merely registering the governed. Proposals like the 2 per cent deduction from workers' earnings for social security raise further concerns. Without enforceable benefits, such deductions are not contributions — they are taxes on the poor. Moreover, corporate executives are candid in acknowledging that any costs related to worker welfare are ultimately passed on to consumers, revealing the inherent limits of voluntary corporate social responsibility. In this way, the state's role has shifted from genuinely transforming the gig economy to managing its precarious consequences: Offering health insurance or social security schemes funded through deductions may provide temporary relief, but these measures merely patch the symptoms of a deeper problem — platform business models that systematically externalise labour costs and evade employer responsibilities. Recognition becomes a technique of pacification, not empowerment. This is the new face of labour governance under platform capitalism: Symbolic inclusion in exchange for structural abandonment. The ongoing protests go beyond demands for welfare — they call for dignity, accountability, and control over working conditions. Gig workers are not seeking handouts but power: The right to unionise, bargain collectively, and reject exploitation. The Zepto strike, like recent actions at Swiggy and Blinkit, exposes the hollowness of legal recognition without enforceable rights. Unless the labour codes are implemented and platforms held accountable, India's digital economy will remain a site of extraction. Real recognition must begin by acknowledging gig workers not as data points or beneficiaries, but as rights-bearing workers demanding justice and dignity. The writer is Visiting Fellow at the Centre for the Study of Developing Societies (CSDS) and editor of the book Feminist Perspectives on Social Media
India.com
26-05-2025
- Business
- India.com
Bad news for Zepto as quick delivery company accused of…., may face probe from….
The Gig and Platform Workers Union (TGPWU) has written to the state labor department, alleging 'exploitative practices' by quick commerce platform Zepto. Zepto has denied these allegations. In a letter addressed to the Telangana government's Additional Labor Commissioner and Zepto's CEO Aadit Palicha, the union stated that despite playing a crucial role in local supply operations, these workers are deprived of basic labor protections. 'The per-delivery rate has been drastically reduced, with workers earning as little as Rs 10-15 per order. There is no guaranteed minimum income despite long working hours. 'The 10-15 minute delivery deadlines force workers to drive at unsafe speeds, increasing the risk of road accidents. Speed is prioritised over safety,' the letter read. Further, the union said delivery partners face arbitrary fines, ratings-based penalties, and account suspensions with no clear redressal mechanism or transparency. TGPWU said there are no restrooms or clean drinking water available at dark stores, and added that riders have to bear fuel and mobile data costs. 'Workers are not provided ESI, PF, health insurance, or any form of accident coverage despite their vulnerable working conditions,' it said. The union said it has been holding a 'peaceful' strike for the past four days in Hyderabad at several store locations, but 'Zepto management has refused to engage in dialogue or accept the legitimate demands of delivery workers'. TGPWU urged the labour department to conduct inspections, direct Zepto to comply with minimum wage norms, and initiate a tripartite meeting involving the labour department, Zepto management, and TGPWU to resolve the ongoing strike. Zepto, however, in a statement to PTI, said 97 per cent of the company's per-order cost goes towards delivery partners. 'Delivery partners in Hyderabad currently earn Rs 100-120 per hour, and these earnings have remained consistent in recent weeks. Our payouts are transparent, with 2X incentives for peak summer shifts and complete flexibility to choose work hours. Allegations of low or inconsistent pay are simply untrue,' it said. It also said it does not rush deliveries or penalise delays. 'Partners are covered with up to Rs 1 lakh in IPD insurance, free video consultations with doctors, and medicine discounts. At our stores, riders can access shaded rest areas, clean restrooms, refreshments, and drinking water — no one is left searching for basic comfort or shelter, even during extreme weather,' Zepto added. (With Inputs From PTI)
The Print
24-05-2025
- Business
- The Print
Low wages, unreasonable work pressure in Zepto; Telangana gig workers' union writes to labour dept
The union, in a letter marked to the Additional Commissioner of Labour, Government of Telangana, and Zepto CEO Aadit Palicha, said despite contributing significantly to the hyperlocal delivery ecosystem, these workers remain deprived of basic labour protection. New Delhi, May 23 (PTI) The Telangana Gig and Platform Workers' Union (TGPWU) has written to the state's Department of Labour against quick commerce platform Zepto's 'exploitative practices'. 'The per-delivery rate has been drastically reduced, with workers earning as little as Rs 10-15 per order. There is no guaranteed minimum income despite long working hours. 'The 10-15 minute delivery deadlines force workers to drive at unsafe speeds, increasing the risk of road accidents. Speed is prioritised over safety,' the letter read. Further, the union said delivery partners face arbitrary fines, ratings-based penalties, and account suspensions with no clear redressal mechanism or transparency. TGPWU said there are no restrooms or clean drinking water available at dark stores, and added that riders have to bear fuel and mobile data costs. 'Workers are not provided ESI, PF, health insurance, or any form of accident coverage despite their vulnerable working conditions,' it said. The union said it has been holding a 'peaceful' strike for the past four days in Hyderabad at several store locations, but 'Zepto management has refused to engage in dialogue or accept the legitimate demands of delivery workers'. TGPWU urged the labour department to conduct inspections, direct Zepto to comply with minimum wage norms, and initiate a tripartite meeting involving the labour department, Zepto management, and TGPWU to resolve the ongoing strike. Zepto, however, in a statement to PTI, said 97 per cent of the company's per-order cost goes towards delivery partners. 'Delivery partners in Hyderabad currently earn Rs 100-120 per hour, and these earnings have remained consistent in recent weeks. Our payouts are transparent, with 2X incentives for peak summer shifts and complete flexibility to choose work hours. Allegations of low or inconsistent pay are simply untrue,' it said. It also said it does not rush deliveries or penalise delays. Zepto acknowledged the strike and said it was 'addressed swiftly'. 'Partners are covered with up to Rs 1 lakh in IPD insurance, free video consultations with doctors, and medicine discounts. At our stores, riders can access shaded rest areas, clean restrooms, refreshments, and drinking water — no one is left searching for basic comfort or shelter, even during extreme weather,' Zepto added. PTI ANK PRS TRB This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.
Time of India
23-05-2025
- Business
- Time of India
Telangana gig workers' union flags 'low wages, exploitation' at Zepto in letter to labour dept; Zepto reacts
NEW DELHI: The Telangana Gig and Platform Workers' Union (TGPWU) has raised concerns with the state's Labour Department regarding alleged "exploitative practices" by Zepto. The quick commerce platform has denied these allegations. In a letter to officials and Zepto's CEO, the union claimed workers are denied basic labour protections despite their key role in deliveries. Zepto has rejected the allegations. "The per-delivery rate has been drastically reduced, with workers earning as little as Rs 10-15 per order. There is no guaranteed minimum income despite long working hours," the letter read. "The 10-15 minute delivery deadlines force workers to drive at unsafe speeds, increasing the risk of road accidents. Speed is prioritised over safety," it added. The union reported issues including arbitrary penalties, unclear rating systems, and account blocks without proper grievance procedures. TGPWU noted the absence of basic facilities at dark stores and highlighted that delivery partners bear operational expenses themselves. "Workers are not provided ESI, PF, health insurance, or any form of accident coverage despite their vulnerable working conditions," it said. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Buy Brass Idols - Handmade Brass Statues for Home & Gifting Luxeartisanship Buy Now Undo The union mentioned an ongoing four-day peaceful protest in Hyderabad, stating that Zepto's management has not responded to workers' concerns. TGPWU requested the labour department to investigate, ensure minimum wage compliance, and facilitate discussions between all parties to resolve the strike. Responding to PTI, Zepto stated that 97% of order costs are allocated to delivery partners. Zepto confirmed addressing the strike promptly and detailed its welfare provisions: "Delivery partners in Hyderabad currently earn Rs 100-120 per hour, and these earnings have remained consistent in recent weeks. Our payouts are transparent, with 2X incentives for peak summer shifts and complete flexibility to choose work hours. Allegations of low or inconsistent pay are simply untrue," it said. Zepto responded to the strike, saying it was resolved quickly. The company stated that it does not pressure delivery partners to rush or penalize them for delays. "Partners are covered with up to Rs 1 lakh in IPD insurance, free video consultations with doctors, and medicine discounts. At our stores, riders can access shaded rest areas, clean restrooms, refreshments, and drinking water -- no one is left searching for basic comfort or shelter, even during extreme weather," it added. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
23-05-2025
- Business
- Time of India
Zepto workers strike in Hyderabad over payout cuts, labour rights violations
Delivery workers at quick commerce platform Zepto have gone on an indefinite strike in Hyderabad, with the Telangana Gig and Platform Workers Union (TGPWU) alleging violations of labour rights and demanding the restoration of earlier payout rates, along with uniform earnings across stores. The union claimed that per-delivery earnings have been slashed, with current rates ranging between Rs 10–15 per order. 'There is no guaranteed minimum income despite long working hours,' it said. In a letter to the Telangana labour department, the union urged the government to inspect Zepto's dark store operations and ensure the company complies with minimum wage laws and offers legal protections to its gig workers. The TGPWU said the strike, now in its fourth day, is ongoing across multiple Zepto dark stores in the city. The union also alleged that Zepto's management has so far not initiated any dialogue or responded to the workers' demands. ' Delivery partners face arbitrary fines, penalties based on opaque ratings, and sudden account suspensions—with no clear redressal mechanism or transparency,' the union added. Email queries sent to Zepto remained unanswered at the time of publication. Last month, industry associations including the Confederation of All India Traders (CAIT), the All India Mobile Retailers Association (AIMRA), and the Organised Retailers Association (ORA) raised concerns about unregulated practices in ecommerce and quick commerce. Discover the stories of your interest Blockchain 5 Stories Cyber-safety 7 Stories Fintech 9 Stories E-comm 9 Stories ML 8 Stories Edtech 6 Stories These included predatory pricing, deep discounting, and inventory-led models by platforms claiming to be marketplaces, all of which are seen as violations of FDI norms. The associations passed a resolution calling for: Stricter implementation of FDI and ecommerce policies. A ban on inventory-driven models by marketplace platforms. Formation of an independent regulatory body to oversee digital commerce.
