Gig workers’ strike to hit food delivery apps harder than e-commerce, say industry sources

As delivery platforms brace for the year-end rush, a planned strike by gig workers on December 31 is expected to test the resilience of food delivery and quick commerce apps, right ahead of the time when platforms typically see some of their highest order volumes, driven by New Year’s Eve and early January celebrations.

Industry sources, however, say the impact is likely to be felt more acutely by food delivery and quick commerce platforms than by e-commerce players.

The strike has been called by the Telangana Gig and Platform Workers Union (TGPWU) and the Indian Federation of App-Based Transport Workers (IFAT), with support from multiple regional collectives across Maharashtra, Karnataka, Delhi-NCR, West Bengal and parts of Tamil Nadu. Union leaders claim that over one lakh delivery workers may either log out of apps or significantly reduce work on New Year’s Eve. Reports suggest that during the December 25 protest, close to 40,000 workers participated, leading to disruption of nearly 60% of deliveries in some cities.

Although, industry sources point out that e-commerce players saw limited on-ground disruption during the December 25 strike, with few riders participating, and expect a similar trend on December 31.

“While the timing of the strike announcement is critical, these days also represent some of the highest earning opportunities for gig workers,” said Karan Taurani, executive vice president at Elara Capital. He added that gig workers operate in a highly unorganised manner, with log-in decisions largely driven by individual availability and income incentives rather than coordinated participation.

Even in the case of wider participation, the impact is likely to be concentrated in select south-based metro markets, with a 10–20% decline in order volumes in those cities. At an aggregate level, this could translate into a revenue impact of around 0.3–0.7% for food delivery and quick commerce platforms during the two strike days of December 25 and 31.

The impact

Elara’s scenario analysis assumes a 60% surge in order volumes during festive days such as Christmas and New Year’s Eve, while factoring in a 10–20% decline in orders in affected southern markets due to the strike.

For Zomato’s food delivery business, average orders per day in Q3FY26 are estimated at around 2.7 million. A two-day strike could disrupt 0.9–1.7 million orders, lowering gross order value growth by 40–80 basis points. This could result in a revenue downgrade of 0.3–0.7% and a non-material impact of 0.3–0.6% on adjusted EBITDA, translating to ₹17–34 million.

Blinkit, Zomato’s quick commerce arm, with estimated Q3 orders per day of 2.68 million, could see a similar revenue impact of 0.3–0.7%, along with an increase in adjusted EBITDA losses by ₹27–54 million during the quarter.

At Swiggy, food delivery orders per day are estimated at around 2.01 million in Q3FY26. Any disruption of 0.6–1.3 million orders over the strike period could lower revenues by 0.3–0.7% and impact adjusted EBITDA by 0.5–1%, or ₹14–28 million. Instamart could also see a revenue downgrade of 0.3–0.6%, with adjusted EBITDA losses widening by ₹25–50 million.

“Our interaction with Swiggy’s management suggests that the impact of the ongoing strike so far has been non-material, and delivery timelines in the top six metro cities remain largely on track,” Taurani said, adding that the situation continues to be monitored closely.

Beyond the immediate strike, there has been uneven progress on gig worker welfare rollout, with states such as Karnataka and Rajasthan notifying rules, while others continue to deliberate amid Centre–State disagreements on funding structures. “While the intent under the Social Security Code is national, implementation remains fragmented and state-driven,” Taurani said, noting that clarity could emerge by mid-January.

Till the time of filing, Zepto, Zomato and Swiggy did not respond to Fortune India's queries.