New Year Resolutions and Quick-Commerce
New Year resolutions often have a fleeting impact, similar to a CEO's address to employees. However, some resolutions gain attention for their timeliness. A journalist’s New Year resolution to stop using quick-commerce services due to inadequate compensation for gig workers sparked a debate on gig workers' rights and labor practices in the industry.
Gig Workers' Strike
- Gig workers in quick-commerce protested for better compensation and social security.
- The strike led to discussions on the fairness of labor practices in this sector.
- Despite the strike, deliveries on peak-demand days like New Year’s Eve were not severely affected.
Significance of Gig Work
- On New Year’s Eve, Zomato and Blinkit delivered over 7.5 million orders, employing more than 450,000 delivery partners.
- The gig economy in India includes around 20 million workers across various platforms, potentially reaching 90 million by 2030.
- Quick-commerce is valued at $7 billion as of 2024, with an annual growth rate projected between 40% to 70%.
Challenges in the Gig Economy
- High turnover in gig jobs indicates systemic issues such as low wages, poor working conditions, and lack of social security.
- Zomato CEO revealed that they terminate about 5,000 workers monthly for fraud, and 150,000 to 200,000 workers leave voluntarily.
Improving the Gig and Quick-Commerce Model
- Regulatory frameworks in countries like the U.S., China, the UK, and Japan ensure quality and safety in quick-commerce.
- In India, relaxing the 10-minute delivery window could improve safety and working conditions.
- Social security and fair compensation should be a priority, with regulatory oversight to ensure these measures are implemented.
The discussion emphasizes the need for a balanced approach to developing quick-commerce, ensuring both profitability and fairness for gig workers.
