The commerce ministry has acknowledged concerns over the exploitation of gig workers. After receiving a letter from a gig workers collective, the ministry also decided to look into the impact of the quick commerce sector on kirana models.
This was first reported by NDTV Profit. The discussion about the impact of the quick commerce sector on kirana stores has been happening for a while. Following this, there was a report by Moneycontrol on August 28 last month where it was mentioned that a plan has been initiated by several government ministries to measure the impact of the quick commerce model on the kirana stores. A source told the news organisation that more than one ministry, including the commerce and consumer affairs ministry, will look into the issue.
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The commerce ministry has taken cognizance of the issue after the Forum for Progressive Gig Workers in India sent a letter to the former where they highlighted the poor conditions of the delivery partners. Further, they also pointed out that, due to a lack of quality checks, there were repeated faulty deliveries.
“While the convenience of quick commerce is undeniable, there have been reports of products being delivered that are close to their expiry dates and not meeting the guidelines mandated by the Department of Consumer Affairs," reads the letter as per NDTV Profit. The letter was written by K. Narasimhan, convenor of the Forum for Progressive Gig Workers in India, on August 21.
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Quick Commerce Firms Fail Quality Checks
Quick Commerce platforms are not complying with proper quality checks, as per the letter written to the ministry.
As per the letter, several quick commerce companies have been found violating regulations that require the disclosure of essential product information that includes expiry dates. As per the Food Safety and Standards (Labelling and Display) Regulations, 2020, "best before" or "use by" dates must be displayed on digital or electronic platforms.
However, many quick commerce platforms have not followed this rule. Instead, they list "shelf life" or end up placing the responsibility on consumers to check the expiry dates after purchasing the food products, adds the report.
With several quick commerce companies lapsing these safety concerns, in July the government decided to increase surprise audits on dark stores of quick commerce companies.
Direct-to-consumer food brands also received surprise audits from the Food Safety and Standards Authority of India (FSSAI) officials as per reports. An FSSAI official reportedly said, “These audits are being done to ensure quality control at all dark stores.”
Along with this, the letter also emphasises that the delivery personnel should have healthcare checkups, wellness programs and insurance schemes. Also, the letter recommended that the government form a committee to oversee and monitor goods delivered by the quick commerce platforms. The report adds that these committees should have the authority to issue warnings or penalties to companies that violate rules or guidelines.
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Quick Commerce versus Kirana Stores: The Perennial Battle
After concerns were raised about the rift between quick commerce platforms and Kirana stores, the Ministry mentioned in a statement, “Further, your recommendations regarding protecting Kirana shops from quick commerce models have been noted by this Department for necessary action.”
Discussions about the issue increased after Union Minister Piyush Goyal mentioned that the rapid expansion of e-commerce platforms in India is a matter of concern. The minister also raised concerns about predatory pricing followed by these platforms. Speaking at an event in New Delhi, Goyal said, “I don’t see it as a matter of pride that half our market may become part of the e-commerce network 10 years from now; it is a matter of concern.” It will be interesting to see if the government increases its checks and balances on these companies amid the fear of unfair growth.
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