Zomato and Amazon Evaluate Business Impact as New Labour Codes Come Into Force

Zomato and Amazon Assess Business Impact as Modi Govt Enforces New Labour Codes

As India enters a new phase of labour reform, Zomato and Amazon assess business impact after the government officially enforced the long-awaited four Labour Codes on November 21, 2025. The sweeping changes, which rationalise 29 existing labour laws, mark one of the biggest structural reforms in India’s workforce regulation, aimed at simplifying compliance and strengthening protections for millions of workers, including gig and platform workers.

The industry response has been cautiously optimistic. Large employers, aggregators and gig-economy platforms have broadly welcomed the reform push, even as they evaluate how the new compliance requirements will shape their operational and financial frameworks.

Companies Welcome Labour Code Implementation but Begin Impact Evaluation

Eternal Ltd (formerly Zomato), the parent of Zomato and Blinkit, became among the first major companies to respond. In an official statement, the company said Zomato and Amazon assess business impact not with apprehension but with preparedness. The food-tech major emphasised that the newly notified labour codes—especially the Code on Social Security (CoSS)—will help broaden safety nets for gig workers who form a critical part of its delivery ecosystem.

Eternal reassured shareholders that the company has been anticipating such transitions. “We have been engaging with the Government over the years and providing inputs throughout this process,” the filing said. “We don’t think any financial impact on account of these Rules will be detrimental to long-term health and sustainability of our business.”

Amazon echoed a similar stance. The company said it welcomes the government’s intent behind the reforms while continuing to assess how the changes would need to be operationalised. “The CoSS is aligned with our existing priorities of providing safety, security and welfare for our employees,” Amazon India noted.

In both cases, Zomato and Amazon assess business impact with an acknowledgement that worker welfare is central to the future of India’s gig and digital economy.

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Four Labour Codes Aim to Build a Streamlined, Globally Aligned Workforce Framework

The newly implemented labour codes—

• Industrial Relations Code, 2020

• Code on Wages, 2019

• Occupational Safety, Health and Working Conditions (OSH) Code, 2020

• Code on Social Security (CoSS), 2020

—are designed to simplify compliance and provide clearer, more predictable rules for both workers and employers.

Government officials have emphasised that these reforms will help India move toward a globally competitive labour market, strengthen export competitiveness and improve the ease of doing business.

For the first time, the codes formally define gig work, platform work and aggregators, marking a major shift in how India recognises and regulates its rapidly growing digital workforce.

Gig and Platform Workers Gain Formal Recognition and New Social Security Provisions

One of the most consequential changes is the mandatory contribution aggregators must make toward social security for gig and platform workers. Under the CoSS:

• Aggregators must contribute 1–2% of annual turnover

• The levy is capped at 5% of amounts paid to gig workers

• Workers will receive an Aadhaar-linked Universal Account Number (UAN) to ensure portability of benefits across states

This is a historic step, giving millions of delivery partners, ride-share drivers and app-based contract workers access to social security benefits previously unavailable to them.

It is within this context that Zomato and Amazon assess business impact, as both companies employ large gig-work forces for food delivery, logistics and fulfilment operations.

Experts Say Operational Costs Will Rise but Predictable Rulebook Helps Long-Term Planning

Legal experts say companies will need to restructure their operational planning and cost models to integrate the new contributions. Sowmya Kumar, Partner at Cyril Amarchand Mangaldas, said operational costs for aggregators will inevitably rise.

“Aggregators will now have to contribute 1–2% of their turnover towards social security for gig workers,” she said. However, the exact financial impact will depend on the finer details of the scheme that the government is expected to notify soon.

She added that the scheme would vary for different classes of aggregators, including:

• Ride-sharing services

• Food and grocery delivery platforms

• Logistics and courier providers

• E-marketplaces

Industry stakeholders have already been consulted, suggesting a smoother rollout.

Industry Anticipates Transition Period as Companies Adjust to New Compliance Framework

While the broader business community has welcomed the clarity that these reforms bring, companies remain mindful of the transitional challenges. For digital-first enterprises, gig-worker heavy platforms and global players like Amazon, accurately modelling the financial and operational impact will likely take time.

Still, early signals show a preference for collaboration, not confrontation. Both Zomato and Amazon assess business impact while reaffirming their commitment to worker welfare, predictable governance and transparent discussions with policymakers.

A New Era for India’s Labour Ecosystem

As the labour codes take effect, India is formalising one of the world’s most dynamic and fast-growing workforce segments. This move is set to shape the future of work in India—providing structure, accountability and social protection in a sector long characterised by informal arrangements.

For now, Zomato and Amazon assess business impact as part of a larger transformation expected to redefine employment standards, investor confidence and worker welfare across India’s rapidly modernising economy.

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