Food delivery giant Zomato has announced a significant increase in incentives for its delivery partners on December 31, as the platform anticipates a surge in order volumes on New Year's Eve. This move comes on a day when gig workers across India, including those from Zomato and rival Swiggy, are staging a nationwide strike.
Incentive Hike Coincides with Strike Action
The decision to enhance earnings for delivery executives was confirmed by the company on Tuesday, December 31, 2025. Zomato stated that the increased incentives are targeted during peak hours and year-end celebrations, a period when customer demand traditionally skyrockets.
This development unfolds against a backdrop of organized protest. Delivery personnel from multiple platforms have withdrawn their services in a strike action, voicing grievances over pay structures, lack of social security benefits, and overall working conditions. The strike presents a potential operational challenge on one of the busiest nights for the food delivery industry.
Company Clarifies: A Standard Festive Protocol
In an official statement to Livemint, Zomato was quick to clarify that the incentive boost is a routine operational measure and is not a response to the ongoing labour unrest. A spokesperson for Eternal, Zomato's parent company, emphasized that this is part of a standard annual practice.
"This is part of our standard annual operating protocol during festive periods, which typically see higher earning opportunities due to increased demand," the spokesperson explained. The company aims to ensure adequate delivery fleet availability to meet the expected high volume of orders from customers celebrating the New Year.
Navigating Demand and Dissent
The situation highlights the contrasting dynamics within India's gig economy. On one hand, platforms are preparing for a peak business event, requiring a robust and motivated workforce. On the other, a significant portion of that workforce is publicly demanding better terms and recognition of their rights.
While Zomato has decoupled the incentive hike from the strike, the simultaneous occurrence of both events puts a spotlight on the persistent issues faced by gig workers. The industry's reliance on flexible, incentive-based pay models during high-demand periods remains a central point of discussion. The effectiveness of Zomato's increased incentives in ensuring smooth service delivery on New Year's Eve, amidst the strike, is yet to be seen.
This story is developing. Further updates are expected as the situation evolves on December 31.
