Swiggy Takes Away Delivery Partners' Health Insurance For Missing Targets: Report

Swiggy has been accused of retracting health insurance for workers who fail to meet weekly targets. This move puts the workers and their dependents at a financial risk in case of health emergencies.

What Happened: As per a report in Rest of World, Swiggy’s dynamic rating system, introduced in 2023, categorizes its gig workforce into gold, silver, and bronze based on their work quality and quantity. The ranking determines the workers’ eligibility for company benefits, including health insurance, which can change every week.

Workers with a gold rating are entitled to health insurance for themselves and their families. However, the silver category excludes the family from insurance coverage, and bronze-rated workers are only covered for accidents.

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In a survey conducted by Rest of World, 65% of the 40 Swiggy food delivery riders interviewed across various Indian cities found the dynamic insurance feature unfair. Over half of them expressed their desire for Swiggy to revert to its old system, which offered uniform and fixed insurance across the fleet.

Why It Matters: Swiggy’s dynamic insurance plan could be a strategic move aimed at cost-cutting as the company gears up for an initial public offering (IPO). The company last valued at approximately $10.7 billion in January 2022, reported a loss of over $500 million during the 2023 financial year. The implementation of this dynamic insurance policy could be a way to mitigate these losses and make the company more appealing to potential investors. However, the move has sparked discontent among its workforce, potentially impacting its operations and reputation.

The company’s decision to link insurance benefits to performance ratings has raised concerns about the welfare of its gig workers, who are already grappling with the challenges of the gig economy. This development underscores the need for regulations to protect the rights and welfare of gig workers in India.

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