Indian culture has a deep and time-tested division of the social structure that was initiated based on the kind of works that people did back in those days. People have been categorized into 4 broad categories called Castes. These castes emerged from the type of works. This ancient practice has been carried into the 21st century too but is losing its hold gradually. In the modern times, any work is looked down upon or looked up to depending upon the pay and the lifestyle it provides.
The job of the delivery personnel was looked down upon for a long time since the pay was less and it was in the minds of the Indian population that it was not a job of dignity for some reason. However, the social stigma attached to the job has eroded away and many people are accepting this job as the pay is very high. The Indian food delivery business is booming, as people are moving out of their home cities for either education or jobs. More people are feeling free to order their food instead of leaving their comfort zone to either cook or go to a restaurant to eat. When food can be delivered to your doorsteps then there is no need to make the efforts to do it yourself. People in offices order food quite often because it saves their productive time, which would have been wasted in transit back and forth to the food outlet.
Food Delivery Executives as they are called is no more a job that Indians looked down upon as they earn more than most of the college graduate fresher. The average income of a food delivery executive currently ranges from INR 30,000 to INR 55,000. The payments made to the executives are broken up in the following order:
- 12-15 orders per day, sometimes even up to 20
- INR 50-90 per order
- INR 30-40 incentive per delivery especially during peak time or heavy rain
- Some also have fixed timed based pay such as UberEats – INR 75-100/ hr and Zomato – INR 4,500/week + incentives
The two largest players in the Indian food tech industry are Zomato and Swiggy. They are also some of the largest unicorns in the country with around $2 billion and $3.3 billion worth. Recent studies suggest that the two companies are losing around $30 million – $40 million each month in running their businesses. They have also made the Indian users discount addicts. It is difficult for the frequent users of such services find it extremely difficult to comprehend the fact that the normal price of a dish might be around INR 150 because they are used to get the same dish ordered at around INR 40 – 50 via Zomato, Swiggy, UberEats, Foodpanda and so on. The
Since the beginning of 2018, Zomato and Swiggy have increased their capacity and thus they have revamped the payments structure for their delivery personnel. The result is that the food delivery executive now earns almost double than what they earned 3-4 months back.
On one hand, the food delivery executives are earning fortunes. On the other hand, delivery executives of e-commerce websites earn relatively very less at around INR 16,000-20,000/month. This has resulted in the jobs changes and coming to the food delivery industry.