Why did government ask Blinkit, Zepto to drop '10-minute' promise
What's the story
India's leading quick commerce platforms have changed their marketing strategies after the Union Labour Ministry raised concerns over rider safety and working conditions. Companies like Blinkit, Zepto, and Swiggy Instamart have removed references to "10-minute delivery" from their apps and advertisements. The government didn't impose a formal ban but asked these platforms to avoid "branding" tight deadlines amid growing unrest among delivery partners.
Worker safety
Delivery partners voice concerns over tight timelines
The change in branding comes as delivery partners have been voicing concerns over the dangers of tight delivery timelines. They say these deadlines force them to drive fast, especially in traffic and bad weather, increasing their chances of accidents. The government's intervention comes after a nationwide strike by gig workers on December 31 highlighted these issues.
Worker protests
Workers strike over unsafe demands
Delivery workers had also gone on strike on Christmas and New Year's Eve, drawing national attention to unsafe delivery demands, lack of health cover, and income insecurity. Union Labour Minister Mansukh Mandaviya held several meetings with quick commerce platforms, asking them to avoid "branding" rigid delivery deadlines that indirectly pressure workers. This comes as a part of the government's efforts to address these concerns.
Market shift
Quick commerce's impact on consumer behavior
Quick commerce services have grown rapidly since their inception during the pandemic lockdown, changing consumer behavior and India's retail ecosystem. Gauri Rajnekar from IIM Ahmedabad, who co-authored a recent study on quick commerce with Debjit Roy, said the pandemic has led to an unprecedented spike in customers demanding fast delivery of grocery items. This market shift has prompted companies like Blinkit to revise their marketing strategies amid government intervention.
Regulatory changes
New labor laws and quick commerce's revenue growth
Under new labor laws introduced by the Modi government in November last year, gig economy firms will have to contribute between 1-2% of workers' wages toward a National Social Security Fund. Despite these regulatory changes, quick commerce has continued to thrive. Eternal, Blinkit's parent company, saw its revenues from quick-commerce operations jump from ₹4,200 crore last year to ₹7,100 crore this year.