Union says rising petrol and diesel prices could trigger distress among delivery workers and drivers dependent on app-based platforms
The Gig & Platform Service Workers Union (GIPSWU) on Friday demanded that the government and app-based companies raise per-kilometre service rates for gig workers following the latest increase in petrol and diesel prices, warning that higher fuel costs could force many workers to leave the sector.
The union said the increase in fuel prices announced on 15 May would directly affect nearly 1.2 crore gig and platform workers engaged in food delivery, ride-hailing, logistics and digital services across India.
According to publicly available fuel price revisions cited by the union, oil marketing companies increased petrol and diesel prices by around Rs. 3 per litre, marking one of the first major nationwide retail fuel price hikes in nearly four years. Petrol prices in Delhi rose to about Rs. 97.77 per litre, while diesel prices increased to nearly Rs. 90.67 per litre.
GIPSWU linked the increase to rising international crude oil prices and instability in global energy markets amid continuing tensions in West Asia, including developments involving Iran and the Strait of Hormuz.
“Rise in petrol and diesel prices will become a cause of concern and migration among gig workers,” the union said in a statement.
Union President Seema Singh said the increase in fuel prices had intensified financial pressure on delivery workers already dealing with rising living costs and extreme heatwave conditions.
She said workers associated with platforms such as Swiggy, Zomato and Blinkit were struggling to absorb rising fuel costs while working long hours outdoors.
“The movement demanding increase in per-kilometre payment rates for workers will now gain further momentum,” Singh said, adding that the government and digital platforms should implement a minimum service rate of Rs. 20 per kilometre.
National Coordinator Nirmal Gorana said gig workers were among the worst affected sections within India’s unorganised workforce because many depend entirely on motorcycles and scooters for their livelihoods.
“Every increase in petrol and diesel prices directly affects the daily earnings of delivery workers and drivers because expenditure on fuel, vehicle maintenance and servicing immediately increases while companies do not proportionately revise payment structures,” he said.
The union cited estimates from Niti Aayog showing India had around 7.7 million gig workers in 2020-21, a number projected to rise to nearly 23.5 million by 2029-30.
GIPSWU said workers associated with app-based companies including Zepto, Dunzo, Urban Company, Ola, Uber, Rapido, Porter and Amazon Flex often travel long distances daily and work between 10 and 14 hours under difficult traffic and weather conditions.
The union alleged that despite rising operational expenses, several digital platforms had not proportionately increased delivery charges or kilometre-based compensation, further squeezing workers’ earnings.
GIPSWU said it has submitted memorandums to the Government of India and several app-based companies seeking immediate revision of payment structures and compensation linked to rising fuel expenses.
As part of its protest, the union appealed to gig and platform workers across app-based companies to observe a temporary shutdown of services from 12 p.m. to 5 p.m. on Saturday.
The proposed shutdown is aimed at highlighting the economic difficulties faced by delivery workers, drivers and app-based service providers due to increasing operational expenses and what the union described as inadequate compensation structures.
