‘CONVENIENCE’ ECONOMY. India’s 12-million strong gig workforce is
projected to reach 23 million by 2030
| Photo Credit:
amlanmathur
The recent year-end strike by gig workers has brought renewed national focus on one of India’s fastest-growing, yet least formalised workforces. With nearly 12 million gig workers in the country today, the episode has underscored persistent concerns around welfare, insurance coverage, fair compensation and transparency in the algorithm-driven work allocation. The fact that the workers had to resort to the strike despite the passage of four labour code bills on November 21, 2025, shows that legislation alone does not resolve executional frictions — particularly when benefits and enforcement remain subject to State-level interpretation.
At the core of the protest are five broad demands: wider and more inclusive welfare coverage; fair and transparent payouts, especially in light of the long and often unpredictable working hours of delivery partners; greater transparency in algorithm-based order allocation and incentive structures, as many workers perceive the current set-up as opaque and unilateral; rationalisation of the performance pressures created by ultra-fast delivery promises; and meaningful social security provisions, including insurance and a degree of income stability.
While the demands are understandable, they are not without economic consequences. Our assessment suggests that incremental welfare benefits could add ₹3–4 per order (based on average order value above ₹400 in food delivery and ₹500 in quick commerce) to platform costs. In an escalated scenario, this could rise to ₹8–10 per order, materially affecting unit economics. Over time, the evolution of gig worker welfare will inevitably be shaped by consumers’ willingness to pay a higher price for convenience.
Importantly, the strike so far does not appear to pose a systemic risk. India’s gig workforce is projected to grow to nearly 23 million by 2030, underscoring the sector’s role in large-scale job creation.
About 200,000 workers joined the recent strike — a small segment relative to the overall base but significant for quick commerce and food delivery platforms, which together rely on a rider pool of around 2 million. Notably, leading platforms witnessed all-time high order volumes during the period, allowing them to absorb higher payouts in strike-affected pockets.
Regulatory scrutiny has also prompted a reassessment of delivery-time commitments. There have been calls to remove the “10-minute delivery” tag line, which functioned more as a marketing hook than a contractual promise. In reality, average delivery times hover around 20 minutes, with riders typically completing about three orders per hour. However, in a competitive market, faster delivery remains a critical differentiator. The focus is shifting to tightening backend execution for enhanced consumer experience, rather than catchy tag lines.
The broader success of quick commerce also offers important context. Slotted delivery models used by players such as Amazon Fresh and BigBasket failed to gain the same traction as the instant gratification model. Despite high cash burn and struggles with profitability, quick commerce has become firmly entrenched due to strong consumer acceptance. From delivery of grocery it has expanded into categories such as small electronics and apparel.
This significantly increases the addressable market for quick commerce, with potential to account for 40–50 per cent of total ecommerce demand over the medium term. The appeal lies in a three-way advantage: on-demand convenience for consumers, sharper demand aggregation for brands, and large-scale employment generation.
Going forward, the key things to monitor will be competitive intensity, pricing discipline and sustainable profitability.
Balancing the welfare needs of gig workers with the economic realities of the platform model will be critical. This will ultimately determine whether India’s quick commerce success story remains durable — or becomes a victim of its own speed.
Karan Taurani, EVP, Elara Capital
(Karan Taurani is EVP, Elara Capital)
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Published on January 19, 2026
