Karnataka HC grants interim relief to Swiggy, Zepto, Eternal on gig workers' welfare fee
The Karnataka High Court gave interim relief to delivery platforms challenging the state's Gig Workers Act, directing them to deposit disputed welfare fees (50 paise per two-wheeler, 75 paise per three-wheeler, Re 1 per four-wheeler delivery) pending a July 31 hearing. Eases immediate cost pressure on quick-commerce operators.
What happened
Karnataka High Court granted interim relief to gig platforms (Swiggy, Zepto, Eternal, Urban Company) challenging the state's Gig Workers Act, directing them to
Key facts
- 50 paise per two-wheeler delivery
- 75 paise per three-wheeler
- Re 1 per four-wheeler
- July 30 objections
- July 31 hearing
Why this matters
The unresolved Gig Workers Act creates regulatory uncertainty across Swiggy, Zepto, and Eternal, warranting scenario planning around gig-labor cost structures ahead of the July 31 ruling that may set precedent for state-level welfare mandates.
What to watch
- July 31 hearing outcome and any interim extension
- Similar Gig Workers Act enforcement moves in other states (Rajasthan, Telangana, Jharkhand)
- Any per-order fee pass-through appearing in consumer checkout
- Blinkit/Zepto/Swiggy quarterly commentary flagging welfare-fee contingent liabilities
- Platforms set up escrow/deposit compliance mechanics and quietly reserve for contingent liability without headline disclosure
- Industry body (likely via legal counsel) files consolidated challenge arguments emphasizing collection burden and worker classification
- State labour department defends fee as nominal and worker-protective ahead of July 31
- Competitors monitor whether Bengaluru pricing shifts to test consumer elasticity on delivery fees