Swiggy Ltd., a key player in India’s food and grocery delivery sector, says it relies on a large network of gig-based delivery partners.

As of June 30, 2024, Swiggy’s platform supported an average of 457,249 active delivery partners per month, up from 350,280 in the same period in 2023. The average delivery charge per order paid to partners increased to ₹58.27 from ₹55.98, while the average number of orders processed per partner fell to 463 from 515, indicating changes in partner activity or demand patterns. On a fiscal basis, the average monthly transacting delivery partners have increased from 243,496 in FY22 to 392,589 in FY24.

Swiggy has experienced occasional strikes in various locations, as delivery partners have raised concerns about pay structure, earnings, insurance, and working conditions. Although these strikes did not significantly disrupt operations, Swiggy acknowledges that future strikes, competition from other platforms, and potential legislative changes could impact its delivery network and ability to serve orders efficiently.

According to Swiggy’s IPO papers filed with the SEBI recently, the company allows its delivery partners to work on a non-exclusive, flexible basis, meaning they can choose when and for how long to work. This structure also permits delivery partners to work for other platforms or hold multiple jobs.

Swiggy says in its red herring prospectus that its ability to attract and retain delivery partners depends largely on the financial incentives it offers. The company provides delivery fees and other benefits, including accident and medical coverage, income protection, road safety workshops, and rest spots. Swiggy also continues to develop its technology to improve demand prediction, food preparation time estimates, and routing, which impacts the efficiency of order allocation to delivery partners.

(This article was generated using AI and reviewed by a journalist)

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