Food delivery activity in India has been affected as the ongoing war in the Middle East has created a shortage of cooking gas in the country.
The lack of liquefied petroleum gas (LPG) supply has disrupted operations across households and food businesses, impacting restaurant activity and online food delivery platforms.
An India Today report said daily orders handled by delivery workers linked to platforms have fallen sharply. The report said deliveries for each worker have dropped from around 30 orders a day to approximately five, impacting earnings and work availability.
Shares of quick service restaurant (QSR) operators and online delivery platforms also weakened on 12 March as concerns grew that the shortage of commercial LPG cylinders could reduce delivery volumes. Shares of Eternal (Zomato) and Swiggy each closed 1% lower, after falling as much as 5% during the session, according to Economic Times.
India's Gig and Platform Service Workers Union (GIPSWU) said the disruption is affecting gig workers and food businesses.
The union linked the shortage to global supply disruption and said restaurant closures and reduced operations are cutting demand on delivery platforms.
In a statement, GIPSWU said: "Triggered by the Middle East war disrupting global LPG supplies, commercial cylinder shortages have shuttered restaurants, dhabas, cloud kitchens, catering services, and street vendors, wiping out 50%-60% of food delivery orders on platforms like Zomato and Swiggy.”
The union also cautioned that the “war-induced disaster” is contributing to job losses and debt.
The India Today report added that GIPSWU urged food delivery platforms not to penalise workers due to decreased order volumes.
The union has also written to the Indian Labour Ministry with a list of demands. These include ensuring the supply of commercial LPG to food businesses through the Oil Ministry and an immediate relief of Rs10,000 ($108) for each affected worker from platforms such as Zomato and Swiggy.
It also demanded a three-month moratorium on ID deactivations, minimum daily incentives, and full gig worker coverage under the Code on Social Security, 2020.
Several restaurants and cloud kitchens, especially in urban centres, have reportedly shut down or cut menu offerings due to limited access to cooking gas after disruptions in oil supplies.
The government, meanwhile, has invoked the Essential Commodities Act for cooking gas. This enables authorities to regulate production, supply and distribution.
