LPG shortages exacerbate gig workers' woes, lead to a decline in Zomato and Swiggy orders

Amid the ongoing LPG crisis in India, orders on food delivery platforms Zomato and Swiggy have also seen a sharp decline. The ongoing war between the US, Israel, and Iran has disrupted LPG supplies, impacting restaurants and cloud kitchens in several cities across the country. 

According to an ET report, delivery workers have also expressed concern as their daily orders have dropped significantly. With many restaurants closed or operating at reduced capacity, delivery orders on platforms like Swiggy and Zomato have also declined sharply.

The LPG crisis exacerbated by the Iran war has also impacted India's approximately $335 billion food and beverage sector. Shares of Zomato's parent company, Eternal Ltd., 

fell nearly 4.8% in Mumbai trading, while Swiggy Ltd. shares hit an all-time low. Investors sold these stocks due to a sharp drop in orders. This also affected fast-food companies, such as Jubilant FoodWorks, which operates Domino's Pizza in India.

Impact on the earnings of delivery workers

According to the Gig and Platform Service Workers Union, while many delivery workers previously completed around 30 orders daily, they are now receiving only 5 to 10. The union says this is seriously impacting gig workers' livelihoods. 

The union notes that due to the shortage of commercial LPG cylinders, many restaurants, eateries, cloud kitchens, and street food vendors are reducing or shutting down their operations. Consequently, food delivery orders on platforms like Zomato and Swiggy have declined by 50 to 60%.

The union also said that many delivery workers are having trouble supporting their families due to the sudden loss of income. If this situation continues, many gig workers could face unemployment and debt problems.

Pressure on LPG supply in India

India's LPG supply has also come under increasing pressure, as the country imports more than half of its LPG needs from West Asia. The war between Israel, the United States, and Iran has blocked several key sea routes, including the Strait of Hormuz. 

This has prevented tankers from reaching Indian ports. The hotel and restaurant sectors are being particularly affected. 

Industry associations in Mumbai, Bengaluru, and Chennai have warned that if the situation does not improve, approximately 50% of restaurants could close in the coming days.

Government measures and rising prices

To address this crisis, the government invoked the Essential Commodities Act, 1955, directing that domestic LPG supplies be prioritized. This has further reduced the supply of commercial gas to restaurants and hotels. 

On Saturday, the price of an LPG cylinder rose 7% to ₹913, the first increase in nearly a year. Commercial gas prices were also raised for the second time this month, further pressuring the already struggling food sector.