Food Delivery Platforms Act to Stabilise Operations During Year-End Rush
Food delivery platforms Swiggy and Zomato have rolled out enhanced incentives for delivery partners during peak hours and year-end days, as they seek to maintain service levels amid an ongoing nationwide strike by gig and platform workers. The move comes at a critical time, with companies bracing for a spike in orders around New Year’s Eve while managing operational risks following recent walkouts.
Delivery worker unions have called for strikes on December 25 and December 31, protesting low pay, rising costs, demanding better working conditions, and seeking social security benefits. While platforms reported only brief disruptions during the Christmas Day protest, the renewed call for action at year-end prompted companies to shore up rider availability through higher payouts and relaxed penalties.
A senior industry executive said, “The year-end period is one of the busiest windows for food delivery. Platforms are prioritising continuity of service while trying to balance worker concerns and customer expectations.”
Zomato Offers Higher Per-Order Payouts During Peak Hours
Zomato has significantly increased incentives for its delivery partners, particularly during the high-demand evening window. According to messages sent to delivery workers and people familiar with the matter, the platform is offering payouts of Rs 120–150 per order during peak hours between 6 pm and 12 am.
In addition to higher per-order earnings, Zomato is also advertising daily earning potential of up to Rs 3,000, subject to order volumes, rider availability, and time spent on the platform. These incentives are aimed at encouraging delivery partners to log in during peak demand periods when order density is highest.
To further ease concerns among riders, Zomato has temporarily waived penalties related to order denials and cancellations. Delivery workers say this reduces the risk of income loss during periods of uneven order flow and allows them greater flexibility amid congestion and long wait times.
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Swiggy Pushes Aggressive Incentives for New Year’s Eve and Day
Swiggy has also announced stepped-up payouts around the year-end period, with a particular focus on December 31 and January 1. According to communications shared with delivery partners, the platform is offering earnings of up to Rs 10,000 spread across the two days.
On New Year’s Eve, Swiggy is promoting peak-hour incentives of up to Rs 2,000 between 6 pm and 12 am, traditionally the busiest slot for food delivery orders. The incentives are designed to ensure adequate rider availability during late evening hours, when demand typically surges due to celebrations and parties.
Industry observers note that Swiggy’s higher headline incentives reflect the competitive nature of the food delivery space, where even short-term service disruptions can push customers toward rival platforms.
Quick Commerce Platforms Also Raise Payouts
The incentive push is not limited to food delivery alone. Quick commerce player Zepto has also increased incentives for delivery workers, according to industry sources, as instant commerce platforms prepare for a similar year-end spike in orders for groceries and essentials.
While details of Zepto’s incentive structure were not immediately available, sources said the move mirrors steps taken by Swiggy and Zomato to minimise disruption during the strike period and maintain delivery timelines during peak hours.
Queries sent to Swiggy, Zomato, and Zepto did not elicit immediate responses.
Strike Pressure and Holiday Demand Drive Timing of Incentives
The timing of the incentive hikes is closely linked to recent labour unrest. On December 25, delivery worker unions organised a nationwide strike, which led to brief and localised disruptions, particularly in food delivery services. While platforms maintained that operations stabilised later in the day, unions claimed wider participation and impact.
With unions calling for renewed mobilisation on December 31, platforms appear keen to avoid a repeat of disruptions during one of the most commercially important days of the year.
Key reasons behind the incentive hikes include:
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Ensuring rider availability during peak evening hours
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Managing higher order volumes during New Year celebrations
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Reducing the risk of service delays or cancellations
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Countering the impact of strike participation
Gig Worker Concerns Remain Unresolved
Despite the incentive push, worker representatives argue that temporary payouts do not address deeper structural issues faced by gig workers. Union leaders have reiterated demands for minimum pay guarantees, transparent incentive structures, accident insurance, and access to social security benefits.
“Short-term incentives help during festivals, but they don’t solve the long-term problems of rising fuel costs, unstable earnings, and lack of protection,” a delivery worker associated with a union said.
Platforms, however, maintain that dynamic incentives are necessary to balance demand, supply, and customer experience, especially during peak periods.
Investor View: Incentives as a Cost of Maintaining Growth
For investors, the move highlights the operational complexity of scaling gig-based platforms in high-demand periods. While higher incentives may put short-term pressure on margins, analysts believe they are necessary to protect volumes, customer trust, and market share during critical events like New Year’s Eve.
A sector analyst noted, “These incentives are best viewed as tactical spending. Losing customers due to delivery failures during peak events would be far more damaging in the long run.”
What Lies Ahead for Food Delivery Platforms
As 2025 draws to a close, food delivery platforms are navigating a delicate balance between worker demands, regulatory scrutiny, and the need to maintain service quality. While year-end incentives may help stabilise operations in the short term, sustained labour engagement and policy clarity will be key to long-term resilience.
For now, Swiggy and Zomato appear focused on ensuring a smooth New Year’s Eve for customers, even as broader conversations around gig work conditions continue into 2026.
