Union warns falling restaurant operations are cutting delivery orders, calls for urgent government intervention and support
Disruptions in the supply of commercial liquefied petroleum gas (LPG), linked to the ongoing conflict in West Asia, are beginning to affect India’s food delivery ecosystem, a gig workers’ union said on Thursday, warning that falling restaurant operations are sharply reducing delivery orders.
The Gig and Platform Service Workers Union (GIPSWU) said shortages of commercial LPG cylinders have forced several restaurants, dhabas, cloud kitchens, caterers and street vendors to either temporarily shut kitchens or scale down operations.
This has resulted in a steep decline in orders on food delivery platforms such as Zomato and Swiggy, the union said.
Orders Drop, Delivery Workers’ Incomes Hit
According to GIPSWU, food delivery demand on major platforms has fallen by around 50–60 per cent, leaving gig workers with far fewer orders and reduced daily earnings. The union estimated that nearly one crore workers across the country are being affected by the disruption, with gig and platform workers making up a large section of those impacted.
“Our members are starving,” said Nirmal Gorana, GIPSWU spokesperson. “Hundreds have approached us: families skipping meals, kids going hungry. A gig worker from Delhi, a father of two, laments, ‘From 30 deliveries a day to 5-10, platforms now threaten to deactivate my ID’.”
“Ride-hailing drivers lose restaurant runs, cloud kitchen workers face pink slips. This war-induced disaster is pushing us into unemployment and debt. It is estimated that nearly one crore workers are being affected, among whom gig and platform workers constitute a large section. The present crisis is turning into disaster,” Gorana added.
The union said gig workers lack fixed wages or social security protections, making them particularly vulnerable to supply disruptions and economic shocks.
West Asia Disruptions Tighten LPG Supply
India is facing mounting pressure on LPG supplies as disruptions in West Asia, the source of more than half of the country’s imports, constrain shipments.There have also been reports of restaurant services linked to Zomato and Swiggy being affected in cities including Pune and Mumbai as well as parts of Andhra Pradesh.
Rising tensions involving Iran, Israel and the United States have disrupted key maritime routes, including the Strait of Hormuz, preventing LPG tankers from reaching Indian ports.
The supply crunch is weighing heavily on the hospitality sector. Trade associations in Mumbai, Bengaluru and Chennai have warned that nearly 50 per cent of restaurants could be forced to halt operations if the situation continues. Several outlets have already shortened business hours and trimmed menus by removing dishes that require longer cooking times in order to conserve limited LPG supplies.
Union Seeks Urgent Government Intervention
GIPSWU said it has written to the Union Labour Minister seeking urgent intervention and called for an emergency meeting with platform companies and oil firms.
Among its demands, the union has asked the Oil Ministry to ensure an uninterrupted supply of commercial LPG cylinders to food businesses across the country. It has also urged platforms such as Zomato and Swiggy to provide Rs 10,000 as immediate financial relief to affected workers.
In addition, the union has sought a three-month moratorium on ID deactivations, minimum daily incentives for delivery partners and full inclusion of gig workers under the Code on Social Security, 2020.
Ride-hailing Drivers May Also Face Disruption
Separately, the Telangana Gig and Platform Workers’ Union and the Indian Federation of App-based Transport Workers said thousands of drivers using LPG and CNG vehicles on app-based ride-hailing platforms could also be impacted if fuel supply disruptions persist.
Drivers operating through services such as Ola, Uber and Rapido rely on uninterrupted access to affordable fuel to sustain their daily income.
“Any disruption in supply could lead to long queues at fuel stations, fewer trips, and immediate income loss for drivers who are already struggling with rising operational costs,” the unions said in a joint statement.
They added that the gig and platform economy is highly sensitive to fuel availability, and even short-term shortages could disrupt multiple sectors, including ride-hailing services, food delivery platforms, courier services and small restaurants.
Government Prioritises Household LPG Supply
To manage the situation, the government has invoked the Essential Commodities Act, 1955 and directed domestic refineries to prioritise LPG supplies for households rather than commercial users, further tightening availability for restaurants and hotels.
Prices have also begun to rise. The cost of a domestic LPG cylinder increased by about 7 per cent to Rs 913 over the weekend, marking the first revision in nearly a year. Commercial cylinder prices, which are revised more frequently, have already been raised twice this month, adding to cost pressures for the food service industry already grappling with supply shortages.
Stocks Of Food, Delivery Companies Under Pressure
Concerns over the supply disruption have also weighed on the stock market, with shares of food delivery companies and restaurant operators declining. Shares of Eternal. dropped as much as 4.8 per cent during trading in Mumbai, while Swiggy fell to a record low as investors reacted to expectations of a sharp fall in order volumes.
The pressure also extended to quick-service restaurant operators. Jubilant FoodWorks, which operates Domino’s Pizza outlets in India, saw its shares come under pressure as the LPG shortage disrupted commercial kitchens across the country.
