New labour codes: Gig firm clients likely to bear higher costs
Gig platforms such as Swiggy and Eternal may transfer the increase in cost due to the implementation of new labour codes to its customers in the form of higher platform fee, according to a note from Kotak Institutional Research.
“Assuming companies such as Eternal and Swiggy have to shell out an incremental 5% of annual payments to workers, the food delivery businesses could see an impact to the tune of ₹3.2 an order, while QC businesses could see an impact of ₹2.4 an order. We believe companies would pass on the impact of these to consumers with time via higher platform fee or other charges,” according to the report. The authors added that the potential impact could be subject to implementation.
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