The 10-minute delivery model has become increasingly popular in India, but now this model seems to be facing difficulties. On New Year’s Eve, gig workers announced a nationwide strike, involving more than two lakh riders across the country. Gig workers are demanding fair wages, safety and respect, while union leaders say the root of the problem is the 10-minute delivery deadline, and the situation will not improve unless it is abolished.
Why is the quick delivery model in trouble?
In fact, during the COVID-19 pandemic, the demand for fast delivery of essential goods increased in India, and it is from here that this model gained popularity. At that time, delivery within half an hour was considered a big deal. However, as the situation normalized, quick delivery platforms like Fridge No More, Bike and Getir in the US either closed down or faced serious financial difficulties. In contrast, the model continued to spread rapidly in India, and companies started claiming to deliver everything from medicines to daily necessities in 10 minutes.
According to a Bloomberg report, companies like Blinkit, Swiggy Instamart and Zepto have invested heavily in dark stores or dark warehouses. These are small warehouses built inside cities which are built to fulfill orders in a very short time. Initially, big players like Mukesh Ambani, Amazon, Walmart and Flipkart were left behind in this race, but now they too are investing heavily in quick commerce. Real estate firm Savills PLC estimates that the number of dark stores in the country could increase from 2,500 to 7,500 by 2030, and the model will spread to smaller cities.
Strike sparks new debate
The recent strike has sparked a new debate on the veracity of the quick delivery model. While the apps may claim they don’t compromise driver safety, gig workers say poor ratings, pressure from supervisors and financial penalties for late deliveries force them to drive fast and recklessly. Working in cities plagued by narrow roads, poor traffic management and pollution is already dangerous. In the national capital Delhi, poor air quality is also a major challenge for riders. Even before the strike, investors were concerned about providing social security to gig workers under the new labor code. Since October, shares of Swiggy and Eternal (parent company of Zomato and Blinkit) have fallen nearly 20 per cent.
What is the companies’ view?
Quick commerce companies claim that the strike had no significant impact on their operations. Eternal CEO Deependra Goyal posted on social media platform X that orders delivered on December 31 reached an all-time high of 7.5 million. He blamed some “mischievous elements” for the strike. Goyal argues that delivery in 10 minutes is possible not because of riding a fast bike, but because of the infrastructure present in every area. According to him, the average speed of the riders is around 16 kilometers per hour. The company pays the drivers’ insurance, and they can earn up to Rs 102 on average per hour while they’re logged in. However, these same statistics also highlight the shortcomings of this model. Even with this average earning, riders have to work consistently for long hours to earn around Rs 21,000 a month, which is not possible for everyone.
What will happen next?
There is a glut of workers in India’s labor market. While lakhs of riders leave this job every year, new people join equally fast. So, customers will continue to get fast delivery, but the question is whether gig workers are happy, safe, and adequately compensated for the risks they take. This is the fundamental question on which the future of the quick delivery model depends.
