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March 23, 2025

The Rise of Rapid-Delivery Services in Urban India: Instant Gratification Comes At A Cost

Julia Norman 20 Years of Serve, Learn, Lead

Coming to Ahmedabad, Gujarat, from Los Angeles, California, I was familiar with expedient delivery services. I have access to Amazon Prime, allowing me to get almost anything delivered to my home within twenty-four hours. 

I can also schedule grocery delivery via Instacart, with an estimated arrival time of 2-5 hours, depending on the time of day and size of the order.

However, what I do not have access to back in the States is an even faster, almost instant delivery service, one I would have previously thought impossible.

Whether I want fruits and vegetables, toothpaste, makhana, a mop, party decorations, or headphones, I just need to open Blinkit—owned by food delivery giant Zomato—or Swiggy Instamart, place an order, and the items will be dropped off at my location in a matter of minutes.

While these services are no longer novel to those living in major Indian cities, the first time I saw these apps in action, I was dumbfounded. It took just seven minutes from when I placed an order for my groceries and other household essentials to arrive. I thought Prime was dangerously fast—how was this delivery speed possible?

The Makings of ‘Instant Delivery’ 

Unlike Amazon’s large warehouse model, where goods are packaged and shipped from centralized locations, Swiggy Instamart and Blinkit operate using “dark stores.” Though not directly visible or accessible to customers, these small fulfillment centers are stocked with frequently purchased items and strategically distributed across major cities to ensure rapid turnover. Online orders are processed quickly and dispatched to nearby drivers, allowing for fast delivery to customers in close proximity. From what I can tell on the order map, the fulfillment center near my neighborhood is about a fifteen-minute walk from my apartment.

Surely, for the consumer, Blinkit and Swiggy-Instamart are incredibly convenient. Need another bag of chips or a liter of soda for your party? Run out of detergent right before doing laundry? Feeling a sudden urge to play badminton this afternoon? No need to fret! Instead of walking a kilometer or two to your local kirana (grocery/convenience store) or market—or postponing the purchase altogether—you can simply use these apps to have the items delivered to you right away.

Photo depicts various items for sale for instant delivery, including a badminton racket set and bedsheets.
Shopping for household and lifestyle items in one of the apps (Screenshot courtesy of the author).

The fee is relatively low compared to the price of the goods being purchased. Payment can also be made via cash or UPI (real-time instant payment system), and tipping the driver is optional and, in my experience, often unexpected.

I won’t lie; I initially found this service enticing and even astounding. It taps into the desire for instant gratification and opens up a range of possibilities. If I’m craving a mid-afternoon work snack, and I know it’ll be delivered in minutes…why not order?

But just as I am familiar with the pernicious practices and grave consequences attributed to Amazon’s dominance—monopolistic control, the decline of small businesses, worker exploitation, and various ecological harms—my inclination to embrace Swiggy and Blinkit raised important questions: What impact are these ‘instant delivery’ services having on workers, the environment, and local shops (kirana stores)? Additionally, what do future growth projections for these e-commerce mega-firms reveal about the direction of India’s urban economy?

Unfortunately, I wasn’t too surprised to read about the grim trajectory that comes with the growth of these e-commerce supergiants (at least for non-shareholders).

The Current Costs of Convenience: 

Labor Abuses

For one, patterns of exploitation among gig workers and the general lack of labor protections for Swiggy/Instamart and Zomato-Blinkit ‘partners’ are well documented.

As is too often the case in the gig economy, workers are typically classified as independent contractors (or ‘partners’ in this case) rather than employees. This classification provides corporations with a loophole to deny them the necessary safeguards and benefits afforded to traditional employees—such as minimum wage, overtime pay, and access to health insurance. Over the past few years, Blinkit and Swiggy delivery drivers have been engaged in an ongoing struggle to collectively bargain in the face of plummeting wages and worsening working conditions.

In the spring of 2023, a wave of Blinkit strikes erupted after full-time workers saw their earnings plummet—some by as much as 50% to 70%—in just a few weeks. Previously, full-time delivery workers on these platforms earned a relatively stable ₹18,000–₹20,000 per month.

(To put this into perspective, a recent study by Home Credit India (HCIN) found that the average monthly income of a “lower-middle-class” individual in a major Indian city is around ₹33,000, with average monthly expenses of ₹19,000.)

However, in April 2023, Blinkit overhauled its payout structure, replacing fixed monthly wages with per-delivery payments. The initial switch to ₹50 per delivery immediately caused a sharp decline in earnings, and in the months that followed, the situation worsened. Payouts were gradually slashed to just ₹12 (USD 0.14) per delivery. Combined with the removal of distance-based incentives for drivers, this new structure left nearly all workers struggling to make ends meet.

Swiggy has generally proven to be relatively more desirable than Blinkit in this regard, with full-time drivers earning an average of around ₹18,000–₹25,000 per month, depending on the city. However, earnings remain heavily dependent on delivery speed and hours worked, and most riders work well beyond full-time hours to meet their incentive targets.

Drivers for both Blinkit and Swiggy Instamart have publicly spoken out about regularly working 14–15 hours a day, often skipping lunch and being denied breaks, to earn barely livable wages. I was struck to learn that a 2024 study by the University of Pennsylvania and the People’s Association in Grassroots Action and Movements (PAIGAM) found that over one-third of surveyed app-based delivery workers in India earn less than ₹10,000 a month. Additionally, more than 68% of drivers reported that their expenses exceed their earnings. These abysmal wages are compounded by other predatory and unjust working conditions—such as a lack of access to basic facilities like washrooms and incurring wage penalties if customers complain about delivery delays.

The relentless pace of ‘instant delivery’ has always pushed these workers to their limits.

When Zomato first announced its 10-minute delivery plans under “Zomato Instant” in 2022, it was immediately met with backlash for pressuring drivers to meet unrealistic and ultimately unsafe deadlines. Following the program’s launch, police reports indicated that Swiggy and Blinkit drivers were frequently violating road safety rules–such as speeding, running lights, or driving on the wrong side of one-way or no-entry lanes. Testimonies from workers confirmed that many rushed out of fear of wage penalties or reprimands from store managers if they failed to meet delivery deadlines.

Similarly, when Swiggy launched “Bolt”—its own 10-minute food delivery service—in Bengaluru in October 2024, police recorded a sharp rise in complaints about reckless driving by delivery personnel. The following month, over 17,000 traffic violation cases were filed against Swiggy drivers in the city, highlighting a serious safety risk to both workers and the public.

The Gig Workers Union, also known as the Indian Federation of App-based Taxi Workers (IFAT), has recently partnered with the National Restaurant Association of India (NRAI) in a legal challenge against these platforms. Their primary concern is the risks tied to the promise of 10-minute or faster deliveries, including threats to worker safety from road violations and the enforcement of inconsistent, unclear payouts—a tactic some believe is intended to discourage worker solidarity.

Senior leadership at both Swiggy and Zomato, however, have denied imposing time pressure or penalties on delivery partners for late deliveries. They have repeatedly claimed that time optimization doesn’t happen on the road and that drivers can log in and out of the apps as they please. Restaurant representatives have pushed back, noting that even if such claims were true, time pressure often falls on their staff, who are forced to accelerate food preparation to meet stringent delivery deadlines. These executive statements are also misleading, as they fail to acknowledge that drivers’ IDs can be blocked from the platforms if they deny too many orders or question local management. Workers must also adhere to login shifts, which include mandatory peak-time logins, weekend work, and strict limits on order cancellations to maintain their status as ‘partners.’ They cannot exit these apps at will, as a significant portion of their pay depends on meeting these conditions.

Swiggy and Blinkit executives also have a history of making untrue public statements. Most notably, both companies have claimed that they deduct a maximum commission of 20%, but user evidence reveals that nearly half of delivery drivers on these platforms face deductions between 31% and 40% per ride.

Other types of labor violations are also common. Raids conducted by multiple State Health Departments on dark stores across India have exposed unhygienic and non-compliant warehouse conditions, further demonstrating how both companies neglect the safety of workers and customers alike.

Taken altogether, I can no longer assume that my delivery driver is even earning enough to cover fuel costs or that they aren’t endangering themselves and others by rushing from one order to the next. These platforms seem to be becoming increasingly exploitative of their workers—perhaps by design.

Undercutting the Smallholder 

The rapid expansion of these companies, which primarily promote ‘big brand’ products, poses a growing threat to millions of mom-and-pop stores across India. For decades, small vendors have been the backbone of the country’s grocery trade, but the rise of instant e-commerce delivery is already endangering the future of India’s approximately 13 million kirana stores.

The All India Consumer Products Distributors Federation (AICPDF) reported that the rapid expansion of quick commerce led to the closure of approximately 200,000 kirana stores in just the past year. This followed an Economic Times report stating that from July to October 2024, kirana stores saw month-to-month sales declines of 25–30% for fast-moving consumer goods, largely due to competition from Swiggy Instamart and Blinkit. In a more alarming projection, brokerage firm Elara Capital estimated that quick commerce platforms could drive up to 30% of all kirana stores out of business by 2030.

Such figures cannot simply be attributed to a shift in consumer preferences. One key reason Blinkit and Swiggy have been able to acquire customers rapidly is their financial capacity to engage in predatory pricing. Both companies have been selling goods at prices below wholesale, leaving small retailers unable to compete. These major e-commerce players have pursued this price gouging strategy to dominate market share, willing to absorb short-term losses to take control of the market. As of last year, Blinkit reached a valuation of $13 billion while reporting a net loss of $131 million. Small-business associations have accused these platforms of misleading customers and using illegal practices to undercut competitors, warranting investigation by the Competition Commission of India (CCI) in direct violation of India’s Competition Act.

It’s also worth noting that these platforms will further undercut small businesses by restricting and homogenizing product choices.  The household items sold are often low-quality, budget alternatives. At the same time, the groceries tend to be highly processed products (foodstuffs) from multinational corporations and distributors such as Nestlé, Unilever, Mondelēz, and Mars Inc. This shift pulls consumers away from local suppliers, posing yet another threat to food quality, food sovereignty, and small businesses struggling to compete with major manufacturers.

Housing Grabs: Dark Stores Compete with Renters for Units

Another often-overlooked yet significant consequence of the rise of instant delivery services is their large-scale acquisition of urban properties to expand dark stores. This model depends on a dense network of distribution hubs across urban areas, with facilities typically ranging from 2,500 to 8,000 square feet, depending on location.

In major cities like Mumbai, where the housing market is already experiencing high inflation and rental prices are at a premium, the expansion of these companies will only intensify the crisis. Both Blinkit and Swiggy have publicly announced plans to double their number of dark stores in 2025 alone. Zomato’s Blinkit plans to grow from 1,000 to 2,000 stores by the end of the year, and Swiggy plans to expand from just over 500 dark stores to more than 1,000 by March 2025. Landlords are already capitalizing on the trend, noting that they can raise rental rates due to these companies’ willingness to pay. Some strategists predict that as available warehouse space in dense areas becomes scarce, these companies may begin acquiring entire floors of rental buildings, further tightening the real estate market. In areas where housing prices are already rising faster than salaries, and urbanization will only increase housing demand, Swiggy and Zomato’s property grab comes at an immense cost to young families and current renters.

Environmental Harms: Waste & Emissions

Adding a delivery step to the producer-to-consumer chain also inevitably increases emissions and, for certain products, introduces additional and unnecessary packaging.

India’s e-commerce market is already one of the top contributors to the country’s annual plastic pollution, particularly through single-use plastics. Reports from 2023 indicate that the sector generates at least 1.2 million tonnes of waste, accounting for as much as 13% of the nation’s total plastic waste. In major cities like Bangalore and Chennai, waste collectors have reported to media outlets that dry packaging waste from e-commerce has increased exponentially. In 2017, it accounted for just 3–4% of total dry plastic waste, but by 2023, that figure had risen to 10–15%. As the sector continues to expand, there is little reason to believe waste generation won’t follow suit. From my own experience, it’s hard to ignore that my Swiggy Instamart oranges arrived wrapped in plastic netting and placed inside a plastic container.

I was similarly disheartened, though not surprised, to find that these companies are largely failing to address their contributions to climate change.  Zomato’s 2024 ‘Net-Zero’ emissions program revealed that it relies on an offsetting scheme through Verra, the world’s leading carbon standard for the billion-dollar voluntary offsets market. Recent studies have shown that over 90% of Verra’s rainforest “offset credits” are actually “phantom credits,” meaning they do not represent real carbon reductions. Paradoxically, these credit schemes may even encourage consumer behavior that ultimately increases overall emissions.

If Swiggy and Zomato are relying on scientifically discredited carbon offsets to achieve their annual emissions reductions, their reductions are almost certainly hollow. Furthermore, by outsourcing responsibility to external projects that are often inefficient and poorly monitored, these companies also reinforce environmental injustices. A climate change ‘sustainability strategy’ that relies solely on carbon offsets is fundamentally flawed, as it enables companies to continue emitting greenhouse gases without making meaningful changes to their operations.

Is It All Doom and Gloom?

This is by no means an exhaustive list of the many externalities tied to Zomato and Swiggy’s dominance in the expanding ‘instant delivery’ e-commerce sector. Yet, these realities alone make it clear that the rapid growth of this industry is cause for concern. Just as Amazon’s rise has been marked by severe labor abuses—where workers face grueling conditions, high injury rates, low wages, and union suppression—alongside increased carbon emissions, excessive packaging waste, anti-competitive practices, and consumer privacy concerns, Blinkit and Swiggy are following a similar trajectory. It should come as no surprise that these platforms prioritize expanding their profit margins at the expense of workers and communities, relying on aggressive market tactics while sidestepping sustainable and fair business practices.

However, there have been some seemingly hopeful developments. India’s recent announcement that 10 million gig workers will receive official identity cards and healthcare benefits—including death and disability coverage—under Budget 2025 suggests that the state is beginning to take steps toward providing social security for these workers. Additionally, successful strikes have pressured companies to abolish time-bound deliveries in certain states, demonstrating the power of unions in holding Swiggy and Zomato accountable and preventing unchecked exploitation of their drivers.

Major labor organizations are also currently pushing for stronger regulation, particularly from the Competition Commission of India (CCI). The All India Consumer Products Distributors Federation (AICDF) is lobbying for minimum sales prices to prevent price gouging designed to drive independent retailers out of business. The proposed Digital Competition Bill aims to establish a minimum sales price for certain goods and curb excessive discounts. The National Human Rights Commission (NHRC) of India is also leading a campaign to advocate for the rights of all gig workers, driven by growing concerns over long hours, financial strain, and physical exhaustion—especially among delivery drivers. The NHRC has been urging India’s Central Labour Ministry to implement targeted regulatory frameworks, including rest points for workers and grievance redressal mechanisms.

The CCI is also engaged in an ongoing investigation of these quick-commerce companies (including Swiggy and Zomato) for dubious business practices, including ownership of dark stores, predatory pricing, disruption of traditional retail distribution, and failure to disclose product expiry dates.

These potential positive developments hinge on the Indian government’s capacity and willingness to keep pace with the rapid expansion of Swiggy and Zomato’s market power, both of which already dominate at least 90% of the sector.

The E-Commerce Economy Means Sweeping Change 

There’s no getting around the fact that India’s e-commerce market is one of the fastest-growing in the world. It is currently valued at USD 137.21 billion and projected to reach USD 363.30 billion by 2030—an annual growth rate of up to 21.5%. Business analysts predict that both Swiggy and Zomato can similarly expect an annual 20% increase in gross order value—the total amount of customer orders placed within a given period—over the next few years.

In the near future, Swiggy Instamart will launch as a standalone app, further entrenching its commitment to the increasingly controversial 10-minute delivery model while expanding its product range to nearly 50,000 items. Meanwhile, Amazon is preparing to enter the sector with its own rapid-delivery service, “Tez,” set to launch in 2025.

While the expansion of these platforms may contribute to India’s overall GDP and its push to establish its own “Silicon Valley,” there is little reason to believe these benefits will be widely distributed across the economy. This so-called ‘booming market’ operates as a duopoly, largely backed by foreign shareholders in the EU, Singapore, United States, and other regions, siphoning money from Indian urban consumers into the pockets of the world’s wealthy financiers.

As Swiggy, Zomato, and now Amazon continue to expand their foothold unchecked, the way urban residents engage as producers, sellers, and consumers will keep evolving—not just toward a culture of convenience but also away from locally provided goods and services, deepening reliance on international supply chains.

Conclusion

I am cautious of falling into the trap of shifting responsibility for the harms caused by Swiggy and Zomato onto consumers. Solutions that focus on user choice or place the burden on individuals to demand more ethical standards are often exploited by mega-corporations and governments, allowing them to sidestep their responsibility to regulate and enforce legal frameworks that apply to the broader public. This tactic diverts attention from the structural policies needed to address extractive and exploitative corporate practices while discouraging collective action among users.

Still, given the consequences of these platforms, I can’t help but question whether 10-minute delivery is something anyone should support as common practice– at least in it current form. Is such a standard inherently unreasonable and harmful to both workers and consumers? Beyond big tech’s increasing ability to exploit our desire for instant gratification, convenience, and dopamine-driven consumption, I am not convinced there is really a meaningful or necessary difference between delivery in under 10 minutes versus a 30-minute to 1-hour window.

6 minute delivery available for electronic items
Screenshot Displaying ‘6 Minute Delivery’ for various electronic items (Photo courtesy of the author).

If I ever feel the need to have goods delivered that quickly, perhaps it’s a sign to examine how my time is increasingly being encroached upon or how I have constructed a sense of need simply because instant delivery is now possible.

I won’t presume to say whether using or boycotting these apps is an ethical choice or even an effective form of action. Individual and household needs—shaped by financial constraints, health conditions, work schedules, and other factors—ultimately influence purchasing decisions. It is also important to recognize that during the COVID-19 pandemic, e-commerce and no-contact delivery played a crucial role in ensuring households had access to essential goods when in-person shopping was not an option. The industry saw an immediate boom, but its growth has only accelerated since. While user habits have not necessarily returned to pre-lockdown norms, the speed of delivery has only increased.

The question remains: who truly benefits from this transformation?

With some of the ‘hidden costs’ of Zomato and Blinkit’s delivery services laid bare, the answer is troubling. If the price of instant delivery—at least in its current form with minimal regulations—includes wage theft, labor exploitation, the decline of small businesses, rising housing costs, and excessive waste, then these services are anything but convenient.

 

Swiggy Instamart Bag displayed celebrating New Years.
Swiggy Instamart Bag “New Year, Same Us. Get Anything in Just 10 Minutes” (Photo courtesy of the author).
With the ‘hidden costs’ of Zomato and Blinkit’s delivery services laid bare, the answer seems clear—and deeply troubling. If the price of instant delivery includes wage theft, labor exploitation, the decline of small businesses, rising housing costs, and excessive waste, then these services are anything but convenient.
Blinkit Delivery Bag “India’s Last Minute App” (Photo courtesy of the author).

 

 

 

 

 

 

 

 

 

 

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“Swiggy Instamart Expands to 75+ Cities, to Launch a Parallel Standalone App.” Swiggy, 9 Jan. 2025, https://www.swiggy.com/corporate/press-release/swiggy-instamart-expands-to-75-cities-to-launch-a-parallel-standalone-app/.

“Swiggy, Zomato Delivery Agents Earn More than Fresher Software Engineers: Check Out Their Surprising Income.” The Economic Times, 21 July 2024, https://economictimes.indiatimes.com/magazines/panache/swiggy-zomato-delivery-agents-earn-more-than-fresher-software-engineers-check-out-their-surprising-income/articleshow/111898007.cms?from=mdr.

“Quick Commerce Firms Brace for Higher Churn of Dark Store Workers Amid Rising Competition.” Mint, 1 Feb. 2025, https://www.livemint.com/companies/quick-commerce-firms-brace-for-higher-churn-of-dark-store-workers-amid-rising-competition-11737527704245.html. 

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Author

  • Julia Norman
    Julia Norman

    Julia Norman is serving as an American India Foundation (AIF) Banyan Impact Fellow with the Center for Environment Education (CEE) in Ahmedabad, Gujarat. She will be supporting the implementation, monitoring and evaluation, and documentation of CEE's climate resilience intervention program serving villages in resource-vulnerable regions of Gujarat and Maharashtra. Julia holds a degree in Political Economy from the University of California, Berkeley, and a Master’s degree in Global Environmental Policy from American University’s School of International Service. She has received training in applied agroecology, permaculture practices and principles, and whole-systems landscape design, and brings with her a spirit of reciprocity and restoration to the sustainable development sector. Julia has previous experiences working in the nonprofit, private, and public sectors, having served in roles such as Associate Director of Environmental Sustainability for an eco-resort, a Project Developer and Grant Specialist for Strategies for International Development, and a Food Education Teacher for elementary-age students in Washington, DC. She approaches systems-change-oriented work through this cross-sectoral lens. For her academic achievements and commitment to sustainable food and agricultural policy, she was named a James Beard Award National Scholar for 2023-2024 and was awarded the Critical Language Scholarship to study Urdu in Lucknow, India, in the Summer of 2023. She is grateful for the opportunity to return to India to contribute to an agriculturally-based, community-centered climate adaptation and mitigation project. In her free time, Julia enjoys all things food-related (growing, harvesting, cooking, consuming, and composting), reading, writing, hiking, practicing yoga, and meeting new people in new places.

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julia-norman

Julia Norman is serving as an American India Foundation (AIF) Banyan Impact Fellow with the Center for Environment Education (CEE) in Ahmedabad, Gujarat. She will be supporting the implementation, monitoring and evaluation, and documentation of CEE's climate resilience intervention program serving villages in resource-vulnerable regions of Gujarat and Maharashtra. Julia holds a degree in Political Economy from the University of California, Berkeley, and a Master’s degree in Global Environmental Policy from American University’s School of International Service. She has received training in applied agroecology, permaculture practices and principles, and whole-systems landscape design, and brings with her a spirit of reciprocity and restoration to the sustainable development sector. Julia has previous experiences working in the nonprofit, private, and public sectors, having served in roles such as Associate Director of Environmental Sustainability for an eco-resort, a Project Developer and Grant Specialist for Strategies for International Development, and a Food Education Teacher for elementary-age students in Washington, DC. She approaches systems-change-oriented work through this cross-sectoral lens. For her academic achievements and commitment to sustainable food and agricultural policy, she was named a James Beard Award National Scholar for 2023-2024 and was awarded the Critical Language Scholarship to study Urdu in Lucknow, India, in the Summer of 2023. She is grateful for the opportunity to return to India to contribute to an agriculturally-based, community-centered climate adaptation and mitigation project. In her free time, Julia enjoys all things food-related (growing, harvesting, cooking, consuming, and composting), reading, writing, hiking, practicing yoga, and meeting new people in new places.

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