LPG shortage hits food delivery riders in Mumbai

Gig worker unions said delivery partners working with platforms such as Zomato and Swiggy are reporting a drop in daily trips

Mumbai: Food delivery riders in the city are beginning to feel the impact of the LPG shortage triggered by the ongoing conflict in West Asia, as restaurants trim their menus and prioritise walk-in customers over online orders.

Mumbai, India - March 13, 2019: Online delivery boys pick up the order from the food joint at Dadar in Mumbai, India, on Wednesday, March 13, 2019. (Photo by Satyabrata Tripathy/Hindustan Times) (Satyabrata Tripathy/HT Photo)

Gig worker unions said delivery partners working with platforms such as Zomato and Swiggy are reporting a drop in daily trips. The conflict in Iran has disrupted global gas supply chains, affecting LPG availability and pushing up costs for restaurants across several Indian cities.

While the food delivery business has been marginally hit so far, gig worker unions warned that the situation could worsen over the next few days if the LPG shortage continues. Gig workers told HT that their earnings have not taken an immediate hit, but the number of trips they complete each day has dropped.

“On average, we were completing 18–22 trips daily to deliver food from these apps. This has dropped by 10%-15%,” said V Devre, a delivery partner who works for a food delivery platform. “As far as earnings are concerned, they haven’t been revised since Covid-19, when commissions dropped by 30%-35% from app-based food aggregators. Currently, we are mostly taking and delivering food orders from large restaurants that have the capacity to sustain.”

Gig workers typically earn commissions based on the number of trips they complete. Union leaders claimed that food delivery platforms may have raised their commissions due to increased demand, but are not passing the incentives to delivery partners.

“We have received complaints from the drivers about the drop in food delivery trips,” said Prashant Sawardekar, president of the Indian Federation of App-Based Transport Workers. “We have demanded that the government implement welfare schemes for app-based drivers, but this has not happened yet. We spoke to the highest authorities, who promised that the matter would be addressed after the cabinet session ends. In a war-like situation, app-based companies should contribute to the welfare of gig workers.”

The union has sought welfare measures such as insurance cover for gig workers and their families, education loans, provident fund benefits and pensions.

Restaurant owners told HT that they have already informed food delivery platforms that they will not accept all online orders if LPG supplies remain uncertain.

“Although it does not matter whether we get an order from a walk-in customer or through an app, a walk-in customer is more likely to receive first preference. We will obviously want to save money on the commission paid to these app-based platforms,” said a restaurant owner who did not want to be named.

Zomato and Swiggy declined to comment.