India’s 10-minute delivery model is under pressure

Industry Overview - The Indian quick-commerce industry has continued to grow during and after the pandemic, with a focus on rapid delivery times and an expanding range of products available for instant gratification, unlike similar trends in the US where many companies failed post-lockdown [1][9] - Major players in the market, such as Blinkit, Swiggy Instamart, and Zepto, have heavily invested in dark stores to meet consumer demand for quick deliveries, with projections indicating a threefold increase in dark stores by 2030 [9] Labor Issues - A recent flash strike involving over 200,000 gig workers highlighted ongoing concerns regarding fair pay, safety, and working conditions, with demands for an end to the 10-minute delivery mandate [8][9] - The average earnings for gig workers, such as those at Blinkit, are reported to be around 102 rupees ($1.13) per hour, translating to approximately 21,000 rupees monthly for full-time work, but actual working days are significantly lower, raising questions about the sustainability of these earnings [5][6] Market Dynamics - The quick-commerce model faces challenges as regulatory changes could force consumers to be more patient, potentially undermining the business model before it becomes profitable [5][9] - Despite the high demand for delivery services, the labor market remains saturated, with many gig workers not achieving the earnings targets set by the platforms, indicating a disconnect between expected and actual income [6][7] Future Projections - The gig economy in India is expected to grow to 23.5 million workers by 2030, reflecting a significant increase in the labor force engaged in this sector [7] - Comparisons with China's gig economy suggest that without government intervention, the current model may lead to precarious working conditions for gig workers, despite the consumer benefits [7][9]