India’s gig economy is at an intersection. The rapid rise of instant delivery, over a year in India, and the entry of newcomers such as Zepto in the grocery delivery space has changed the engagement economy and the competitive landscape extremely. Not only Zomato and Swiggy are facing the problem of their delivery personnel by Zepto and Dunzo and others, but the immense disapproval against the lack of income stability and job security has also forced new internal policies.

The Race for Gig or assignment Workers 

Last week, Zomato reconsidered its plans to launch a 10-minute food delivery and rollout in Bengaluru. And its competitor, Swiggy is also going to bother the same and has stopped the potency of Supr Daily in 5 major cities and Swiggy Genie courier delivery service in certain cities as well.

They are facing several difficulties in hiring delivery workforce or delivery men. As competition in the delivery space is increasing, such reductions are likely to generate services that are not really helping the unit economics.

Gig Economy Booms In India

It’s hard to make an estimation of how many Indians are making a living from the gig economy given the unorganized nature of some of the segments, but more than 8 million citizens will be a part of the gig economy in India. This gig economy in India is expected to increase to 24 M by 2023-24 and 90 M before the end of 2030.

The delivery workers obtain only a small portion of this amount; these are the gig workers that are the most visible in the public domain. India’s fastest-growing commerce market is expected to witness a 15 times growth by 2025, reaching a market size of close to $5 Bn.

Competition For Riders

Zomato is also struggling with a shortage of delivery workers for its 10-minute food delivery service, which was already being criticized as creating pressure on the delivery workers. Also, Zomato has already made an announcement of its intention to acquire Blinkit, which is also in the crowded space, finding it hard to keep up with Zepto, Swiggy’s Instamart, Tata-owned BigBasket, and others who have jumped with both feet.

Zepto, in fact, has shared its plans like Zomato Instant with Zepto Cafe and also has plans to enter medicine delivery in the future after its recent fundraising. So, as concluded by Zomato and Swiggy, the two primary delivery employers in India are in retention mode.