Swiggy’s delivery staff strike again; VCs on wait mode & govt scrutiny on TikTok’s re-entry

Is your food and grocery delivery taking time? If yes, then a strike by gig workers might be the reason. Food delivery startup Swiggy has been facing protests from gig workers across metro cities, including Bengaluru, Mumbai, and now New Delhi, too.

Why? Owing to a reduction in worker payouts and poor working conditions, delivery workers near a dark store of Instamart – Swiggy’s quick commerce business – went on strike in New Delhi’s Lajpat Nagar area.

From the horse’s mouth: “ The delivery partner assigned will take longer due to the current situation. I had a word with the delivery partner who said that the order will be delayed due to the ongoing strike,” read a conversation between a customer care executive and delivery staff, which was reviewed by us.

“Delivery partner strikes are very much business as usual now,” said a person familiar with the development. “Swiggy has made a small reduction in payouts in Delhi, so they (the delivery staff) are protesting to make a point. It’s recently happened in Bengaluru and Mumbai.”

A spokesperson for Swiggy said its Instamart service was operational ‘as usual’ in New Delhi as of 1 pm on Wednesday, without giving any further details.

Focussing on profits: Several sources have told us that Swiggy is focusing on improving profitability as late-stage investments in startups are drying up amid global macroeconomic headwinds. Swiggy last raised around $700 million at a valuation of over $10.7 billion in January this year.

There have also been discussions around food delivery at a recent parliamentary panel meeting chaired by former minister of state for finance Jayant Sinha where tech firms like Swiggy and Zomato were present.

Shortage of Gig workers: We reported last week that An acute shortage of delivery personnel is emerging as a major concern for online platforms that are unable to meet rising demand as supply side challenges crop up across the gig economy.

Add a Comment

Your email address will not be published.