Quick commerce firms to rethink 10-minute delivery after govt intervention, gig workers’ strike: Report

India’s flash merchants may have to rethink the much-touted 10-minute delivery promise. News agency report MOMENT The Union labor minister has urged major delivery platforms to move away from aggressive timelines, citing concerns over driver safety and working conditions, he said on Tuesday.

MOMENT The report, based on unidentified sources, stated that labor minister Mansukh Mandaviya held meetings with leading officials. fast trading He asked companies to remove the 10-minute delivery time from their operations and branding.

Blinkit It has already acted on the guidance and removed the 10-minute delivery promise from its branding, the report said. The sources cited above said that the company’s main slogan (10,000+ products delivered in 10 minutes) has been updated to “30,000+ products delivered to your door.” MOMENT.

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The report stated that other platforms may follow in the coming days.

Blinkit, Swiggy and Zepto declined to comment mint It is questioned when you contact. A BigBasket spokesperson said the company had not received any official statement from the government. The Ministry of Labor did not make an official statement.

While industry stakeholders such as gig worker unions and consumer products distributors have staunchly supported the move, analysts have pointed out that companies already have systems in place for fast delivery and that the Centre’s reported intervention will not make much of a difference.

Unions celebrate, analysts remain skeptical

“I definitely see this as a win and all our efforts in the strike we conducted on December 25 and 31 translated into this,” said Shaik Salauddin, founder of Telangana Gig and Platform Workers Union and co-founder of App-Based Transport Workers Federation of India. “A minister who intervenes will certainly have some weight and we now need companies to comply.”

Nirmal Gorana, national coordinator of the Gig and Platform Service Workers Union (GIPSWU), said: Mint He said the union sent a letter to the National Human Rights Commission calling for “an end to forced labor and 10-minute delivery because it pushes workers over the edge and puts additional pressure for faster delivery.”

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Gorana added that on January 26, when India celebrates Republic Day, the union plans to hold a strike in which workers will be ‘signed out’, and a nationwide satyagraha is planned for January 30.

The government’s reported move came after the end of a New Year’s Eve initiative by factory workers’ unions, but safety and working conditions issues continued to linger in social and political forums. The strike was largely neutralized as platform drivers did not want to lose their chance to earn additional income after the companies offered them a one-day incentive. Mint report.

The All India Consumer Products Distributors Federation (AICPDF), a collective of traditional FMCG distributors, also welcomed reports of the labor ministry’s move and added that the promise of delivery of goods within 10 minutes was “misleading and unsafe”.

“However, AICPDF believes that this guidance must now be rigorously implemented, continuously monitored and strictly enforced by relevant departments,” the federation said in a media statement. he said.

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On the other hand, Karan Taurani, an analyst at brokerage firm Elara Securities, said the removal of the 10-minute commitment is unlikely to impact companies’ business as users continue to stick with instant deliveries despite slightly longer timelines.

“Swing trading has become a habitual recommendation, and a few extra minutes won’t have a big impact, if at all,” Taurani said. “Also, removing the 10-minute commitment is just a marketing technique, as flash trading platforms are already capable of delivering in under 10 minutes in many metros.”

Labor Laws are tightening

All online distribution platforms now have to provide extra benefits to their gig and platform workers under the new labor laws announced by the Union government on November 21, which aim to streamline the existing 29 labor laws into four laws.

Mint On the same day, it said that platforms like Swiggy, Zomato, Amazon, Flipkart, among others, will now be required to allocate up to 2% of their annual turnover – capped at 5% of the amount paid or payable to workers – for the welfare of gig and platform workers.

Under the new order, all workers will benefit from benefits such as retirement savings through the provident fund, coverage under the Employees’ State Insurance Corporation and other insurance and social security benefits.