A recent video by YouTuber Loveena Kamath on her channel, Full Disclosure, has sparked conversations about the earnings of Zomato and Swiggy food delivery agents in India. Kamath's investigation reveals that delivery agents working for Swiggy and Zomato in Bengaluru can earn more than many entry-level IT engineers.
Kamath's video features interviews with delivery agents, uncovering a stark contrast between their earnings and those of typical IT professionals. For instance, Shiva, a 22-year-old Swiggy delivery rider, makes between ₹40,000 and ₹50,000 a month. His earnings come from a base pay of ₹20 per order, additional tips, and various incentives. “I get around ₹5,000 a month from tips,” Shiva mentioned during his interview.
Shiva, who has been delivering for three years, claims he has saved ₹2 lakh in the past six months and plans to invest in a business in his village. “I want to open a supermarket, creating employment for my community,” he said.
Similarly, Taiyappa, a Zomato delivery agent with three years of experience, earns close to ₹40,000 monthly.
Payment structure and work hours The video delves into the payment structure of delivery services. Major platforms like Swiggy and Zomato operate on a freelance basis, offering no fixed salary. Riders earn based on the number of deliveries completed, distance travelled, and time of day, with night shifts offering extra incentives.
For example, Zomato pays a base of ₹40 per delivery for orders under five kilometers, while Swiggy offers ₹20. Riders can earn about ₹10 for every additional kilometer. Incentives are substantial, with riders earning bonuses for reaching certain daily earnings targets. However, these prices may vary heavily depending on the city.
However, to achieve these earnings, delivery agents often work long hours, typically 12-13 hours a day, accumulating up to 70 hours a week. This intensive work schedule allows them to earn between ₹7,000 and ₹8,400 weekly from deliveries alone, with total monthly earnings surpassing ₹43,000 when tips and incentives are included.
Many variables involved
While the earnings sound attractive, there are many variables involved. Kamath's video suggests that while some delivery agents report high earnings, but these figures may not be consistent across the board. Factors like location, number of orders, and individual effort play significant roles in determining actual income.
There are other critical aspects of the delivery profession as well. Key costs like fuel and maintenance of bikes or scooters can significantly impact net earnings. Additionally, the longer hours on the road can lead to health issues.
Zomato does provide personal accidental life and health insurance. They also provide insurance coverage against injuries and protects the agent against financial cost in the unfortunate event of an accident. The entry-bar to become a delivery agent is also pretty low which encourages more people to take it up as an occupation. According to Zomato, at present, anyone with a PAN card, knowledge of using a smartphone and riding a two wheeler can undertake deliveries and onboard themselves with Zomato as a delivery partner.