
India’s gig economy has emerged as a third pillar of livelihood alongside formal jobs and entrepreneurship, with food delivery platforms paying out more than Rs 5,000 crore to delivery partners last year, Swiggy’s food marketplace chief Rohit Kapoor told Moneycontrol, as debates around gig worker earnings, incentives and labour codes intensify.
Speaking on the sidelines of the World Economic Forum’s annual meeting in Davos-Klosters, Kapoor said platform-linked work has now reached a scale that makes it central to India’s employment landscape.
“This is truly the third pillar of livelihood in India,” Kapoor said. “Last year, we would have paid out more than Rs 5,000 crore, so there is a substantial amount of income flowing back into delivery partners’ hands.”
Regulation, but not formal employment
Kapoor said Swiggy and other platforms have been part of discussions around the new labour codes for more than two years and welcomed the move towards formalising gig work, but cautioned against treating it like salaried employment.
“We welcome formalisation and the fact that there is a framework around it, but any regulatory view should not equate this with formal employment, because the premise is different — this is flexible employment,” he said.
He added that the rapid expansion of the sector had naturally triggered debate around earnings, incentives and social security, and said regulators, platforms and policymakers would need to better understand the unique structure of gig work as rules take shape.
Tipping plays a limited role
Kapoor’s comments come as delivery partner earnings remain under scrutiny. Moneycontrol reported earlier that only about one in 25 users tip delivery partners on Zomato and Swiggy, underlining how marginal gratuities remain in the overall income mix.
“We don’t tip as much as some other countries, but that’s okay — tipping is never going to be the primary source of earnings, it’s just a nice thing to do if you can afford it,” Kapoor said.
In a separate report, Moneycontrol had earlier analysed pay models across food delivery platforms and found that partner incomes are driven largely by base payouts, incentives and order density rather than tips.
Density, not speed
On delivery timelines and productivity, Kapoor said earnings improve mainly through proximity and demand density, not faster riding.
“Partners deliver more not because they drive faster, but because distances are shorter,” he said, pointing to the role of localised fulfilment, routing technology and better restaurant coordination in improving efficiency.
Next growth phase: affordability, not cities
Kapoor also said the next phase of food delivery growth will not come from aggressive expansion into new cities, but from making delivery more affordable and encouraging more first-time users to shift from home cooking to ordering in.
“Cities are not going to be the major unlock anymore — growth will come when consumers shift from self-consumption to delivery because they find it affordable and easy to trial,” he said.
Moneycontrol had reported earlier that food delivery growth has moderated in recent quarters, with platforms such as Swiggy and Zomato struggling to sustain momentum beyond large urban markets.
Budget hopes
On policy, Kapoor said his primary expectation from the upcoming Union Budget is higher disposable income for consumers.
“My main expectation from the Budget is for consumers to have more money in their bank accounts,” he said, adding that stronger household spending would directly support demand for food delivery and other consumer services.
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