Gig Workers’ Union Accuses Zepto Of Exploitation; Here's What Company Said

The Telangana Gig and Platform Workers' Union (TGPWU) has formally raised concerns with the state’s Department of Labour over what it describes as “exploitative practices” by quick commerce platform Zepto. The union alleges that delivery partners working for the company are being subjected to unsafe conditions, inadequate pay, and a lack of basic worker protections.

In a letter addressed to the Additional Commissioner of Labour and Zepto CEO Aadit Palicha, the union criticised the drastic reduction in per-delivery payouts, which it claims have dropped to as low as Rs 10–15 per order. The letter also noted the absence of any guaranteed minimum earnings, despite workers often putting in long hours.

The union highlighted safety risks posed by the platform's rapid delivery model, where meeting 10–15 minute delivery deadlines allegedly compels riders to speed through traffic, increasing the likelihood of road accidents. “Speed is being prioritised over worker safety,” the union stated.

Additional grievances include arbitrary fines, penalties based on customer ratings, and account suspensions without any transparent appeals process. The TGPWU also pointed out the lack of access to basic amenities such as restrooms and drinking water at dark stores, and said workers bear the costs of fuel and mobile data usage out of their own pockets.

The union further claimed that gig workers are not provided with essential labour benefits such as Employees’ State Insurance (ESI), Provident Fund (PF), health coverage, or accident insurance. A peaceful strike by delivery workers has been ongoing in Hyderabad across multiple store locations, but union leaders say Zepto has declined to engage in dialogue or address their concerns.

The TGPWU has called on the Labour Department to initiate inspections of Zepto’s facilities, enforce compliance with minimum wage standards, and convene a tripartite meeting involving government officials, the company’s management, and the union to resolve the matter.

Also Read: Gold Rate Today (May 23): Check Out Gold Prices In Delhi, Mumbai, Bengaluru, Ahmedabad, More Cities

Zepto's Response

In response to the allegations, Zepto issued a statement denying the claims. The company said that 97 per cent of its per-order revenue is allocated to delivery partners, Zepto told PTI, “Delivery partners in Hyderabad currently earn Rs 100-120 per hour, and these earnings have remained consistent in recent weeks. Our payouts are transparent, with 2X incentives for peak summer shifts and complete flexibility to choose work hours. Allegations of low or inconsistent pay are simply untrue.”

The company also rejected accusations that it imposes unrealistic delivery expectations or penalizes delays. It acknowledged the strike but claimed it was "swiftly addressed."

Zepto added "Partners are covered with up to Rs 1 lakh in IPD insurance, free video consultations with doctors, and medicine discounts. At our stores, riders can access shaded rest areas, clean restrooms, refreshments, and drinking water -- no one is left searching for basic comfort or shelter, even during extreme weather.”

business