Zepto Accused of Exploitative Practices by Gig Workers

New Delhi, May 23 (PTI) The Telangana Gig and Platform Workers' Union (TGPWU) has written to the state's Department of Labour against quick commerce platform Zepto's "exploitative practices".

Zepto, however, has refuted the accusations.

The union, in a letter marked to the Additional Commissioner of Labour, Government of Telangana, and Zepto CEO Aadit Palicha, said despite contributing significantly to the hyperlocal delivery ecosystem, these workers remain deprived of basic labour protection.

"The per-delivery rate has been drastically reduced, with workers earning as little as Rs 10-15 per order. There is no guaranteed minimum income despite long working hours.

"The 10-15 minute delivery deadlines force workers to drive at unsafe speeds, increasing the risk of road accidents. Speed is prioritised over safety," the letter read.

Further, the union said delivery partners face arbitrary fines, ratings-based penalties, and account suspensions with no clear redressal mechanism or transparency.

TGPWU said there are no restrooms or clean drinking water available at dark stores, and added that riders have to bear fuel and mobile data costs.

"Workers are not provided ESI, PF, health insurance, or any form of accident coverage despite their vulnerable working conditions," it said.

The union said it has been holding a "peaceful" strike for the past four days in Hyderabad at several store locations, but "Zepto management has refused to engage in dialogue or accept the legitimate demands of delivery workers".

TGPWU urged the labour department to conduct inspections, direct Zepto to comply with minimum wage norms, and initiate a tripartite meeting involving the labour department, Zepto management, and TGPWU to resolve the ongoing strike.

Zepto, however, in a statement to PTI, said 97 per cent of the company's per-order cost goes towards delivery partners.

"Delivery partners in Hyderabad currently earn Rs 100-120 per hour, and these earnings have remained consistent in recent weeks. Our payouts are transparent, with 2X incentives for peak summer shifts and complete flexibility to choose work hours. Allegations of low or inconsistent pay are simply untrue," it said.

It also said it does not rush deliveries or penalise delays.

Zepto acknowledged the strike and said it was "addressed swiftly".

"Partners are covered with up to Rs 1 lakh in IPD insurance, free video consultations with doctors, and medicine discounts. At our stores, riders can access shaded rest areas, clean restrooms, refreshments, and drinking water -- no one is left searching for basic comfort or shelter, even during extreme weather," Zepto added.