The Delivery Dilemma: Will New Worker Rights Mean Pricier Meals from Swiggy & Zomato?

India’s landmark rollout of new labour codes, finally defining ‘gig worker’ and ‘platform worker’ in law, has placed food delivery majors Swiggy and Zomato in the spotlight. The Code on Social Security, 2020, mandates that platforms contribute 1–2% of annual turnover, capped at 5% of amounts paid to gig workers, into a central welfare fund. Both Swiggy and Zomato welcomed the reforms, affirming that financial impacts are manageable, and will not threaten business sustainability or growth.

The codes require platforms to recognize delivery partners as dependent workers for statutory social security and minimum wages, a major shift from previous contractor arrangements. Companies must now establish transparent policies, tracking worker entitlements, compliance, and welfare payments.

Analysts estimate that Swiggy and Zomato’s costs could rise by ₹2–3 per order in food delivery and quick commerce. While platforms believe costs can be absorbed or passed on via fees, brokerages call the reform a win for financial inclusion, formalization, and workforce security. Whether higher costs affect profitability depends on future demand and ability to balance stakeholder interests.

Key Highlights

Platforms must contribute 1–2% of annual turnover, up to 5% of total gig worker payouts, for social security.

Swiggy and Zomato expect negligible negative impact on business longevity and growth.

Statutory coverage includes minimum wage guarantees and occupational safety while preserving gig work flexibility.

Analysts forecast cost increases of ₹2–3 per order, manageable for most platforms due to fee flexibility.

Brokerages view new labour codes as positive for formalization and greater protection of gig workers.

Source: Economic Times, Hindustan Times, Business Standard, NDTV Profit, Moneycontrol