India presses quick-commerce firms to end 10-minute deliveries
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The aggressive delivery promise has resonated with India’s aspirational middle class, but it has also attracted criticism from political circles and labour unions.
PHOTO: AFP
India is asking quick commerce companies to drop their 10-minute delivery promise amid mounting concerns that the ultra-tight deadlines are worsening safety and working conditions for gig workers.
Federal Labour Minister Mansukh Mandaviya met with executives from major instant delivery firms – such as Eternal’s Blinkit, Swiggy’s Instamart and Zepto – for discussing measures to improve safety, and working conditions for riders who deliver goods to customers within minutes, according to people familiar with the matter who asked not to be named as the discussions were not public.
Blinkit, India’s top rapid commerce firm, has already removed the 10-minute delivery assurance from its mobile application branding, the people said. Rivals are expected to follow soon.
Blinkit, Zepto and Swiggy did not respond to requests for comment. The labour ministry could not be immediately reached.
India has emerged as a rare success in super-fast deliveries, drawing billions of dollars from global investors such as SoftBank Group and Temasek, even as similar models have collapsed in the US, Europe and parts of Asia.
The sector relies on tens of thousands of gig workers to deliver everything from iPhones to shampoos to customers from dark stores or small warehouses.
The aggressive delivery promise has resonated with India’s aspirational middle class, but it has also attracted criticism from political circles and labour unions.
Companies say gig workers are not contractually bound to meet the 10-minute deadline and are not penalised for delays, arguing that the proximity of dark stores underpins the model rather than speed pressure.
Mr Raghav Chadha, a lawmaker from India’s Aam Aadmi Party, who campaigned aggressively against quick deliveries, congratulated delivery riders on the “big victory”.
The new government directive pushes companies to soften their consumer-facing messaging, but day-to-day operations are unlikely to change drastically in the near term.
“Specifically with respect to our quick commerce business Blinkit, there is no change in business model that could have any material impact on the company,” Eternal said in a disclosure to stock exchanges late on Jan 13. BLOOMBERG
