Policy · Commerce & Consumer Brands

Swiggy faces new labour code and data-sharing demands

By Startup Enthusiast · 20 November 2025

What they do

Swiggy runs a food delivery and quick commerce platform in India

New labour codes require Swiggy to contribute 1-2% of turnover to a social security fund for gig workers

Analysts estimate the additional cost at Rs 1.5-2.5 per order, likely passed to customers

The Ministry of Labour implemented the Code on Social Security, 2020, effective November 21, 2025.
The code requires aggregators like Swiggy to contribute 1-2% of annual turnover (capped at 5% of gig-worker payouts) to a social security fund.
Zomato is in final discussions with the National Restaurant Association of India (NRAI) to share customer data with restaurants.
Zomato is rolling out a feature to seek customer consent to share phone numbers with restaurants for marketing.
Swiggy may follow Zomato's data-sharing model after similar discussions with NRAI.
NRAI has a complaint pending at the Competition Commission of India (CCI) against Zomato and Swiggy over data masking.
Rapido's food delivery service Ownly has already signed a deal with NRAI to share customer data with restaurants.
NRAI also approached CCI earlier in 2025 about Zomato and Swiggy's standalone 10-minute delivery apps as private labels.

Analysts estimate the new labour code will add Rs 1.5-2.5 per order for food delivery and quick commerce, per Morgan Stanley.
JM Financial estimates Swiggy's annual contribution could be Rs 260 crore based on FY26 projections.
Bernstein estimates the code may reduce Swiggy and Eternal's EBITDA by 25-70 basis points.
Elara Capital estimates the financial impact at Rs 2-3 per order, or 0.2-0.6% of average order value.
Analysts expect companies to pass the additional burden to customers through pricing adjustments.

Swiggy operates a food delivery platform connecting customers with restaurants.
It also runs quick commerce through its Instamart service, delivering groceries and essentials in minutes.
Swiggy had approximately 264,000 average monthly active restaurants on its network in Jul-Sep 2025.
The company is unit-profitable on food delivery at about Rs 13 per order, according to Bernstein.
Swiggy's gig-worker costs as a share of gross merchandise value (GMV) may rise from 11.6% to 12.2% under the new code, per Elara Capital.
Swiggy already spends roughly 1% of revenue on worker insurance, per Elara Capital.

Swiggy may follow Zomato in sharing customer data with restaurants, according to sources.
Analysts expect Swiggy to pass additional costs to customers through pricing or fee adjustments.
Swiggy may follow Zomato in rolling out a feature to share customer phone numbers with restaurants for marketing, subject to customer consent.