Foodtech platform Swiggy has been facing protest from delivery personnel in Chennai, one of its hot market in India. As usual, the unhappiness is over the payment structure including incentives, per-order pay, and regularisation of per mile compensation.
Protestors gathered in several parts of the city like Vadapalani, Mylapore and Porur also threatened that the strike would continue indefinitely if the management doesn’t fulfill their demand. They are even planning for a city-wide protest if the matter fails to settle down by the Naspers-backed foodtech major.
On Wednesday, Swiggy affiliated restaurants in these areas confirmed that they had not been receiving orders via the aggregator app.
A message saying ‘Temporarily unavailable or We’re sorry, delivery is not possible at the moment due to unforeseen circumstances appeared on the app.
Defending itself, Swiggy, on the other hand, promised to resume the service and it is also considering a revised salary structure for the delivery executives.
In a statement to ET, Swiggy explained that the revised payout scheme is in the process and it will consider various parameters including peak hours and distance.
Apart from Chennai, several customers from Bengaluru and Coimbatore also tweeted over disruption in services, however, Swiggy denied such reports and claimed that service is normal across the country.
This is not the first case for Swiggy. Last year, almost 500 delivery executives had gone on strike, halting service in most part of Pune.
Of late, foodtech platforms including Swiggy, Zomato and UberEats have been facing wrath in Kerala as the Kerala Hotels and Restaurants Association (KHRA) has decided to distance itself from these platforms. They are also considering creating a parallel app showing anger over existing arrangement and service charges issue.
Not only food tech, customers and business partners of cab-hailing majors Ola, Uber and online hotel booking platforms such as Oyo, Go-MMT have also protested over incentives and commission structure in the past months.