Job Growth In Food Delivery Faster Than National Average With Amplifying Impact, Finds Study
The food delivery sector employed 13.7 lakh people in the financial year 2023−24.
Employment generation in the food delivery platform economy was faster than the national average and contributed as a major multiplier in the services sector, as per a study conducted by the National Council of Applied Economic Research.
The food delivery sector employed 13.7 lakh people in the financial year 2023−24, compared to 10 lakh in 2021–22, the report title 'Impact of Food Delivery Platform Sector on the Indian Economy' said, analysing various government and private sector data.
Although the proportion in the country's total workforce was very small, employment in the sector grew at a CAGR of 12.3% between 2021–22 and 2023– 24, compared to all-India CAGR of 7.9%.
The employment multiplier in the food delivery platform sector for 2021−22 was 3.4 and 3 in 2023−24. Then meant that 3.4 (3 in 2023−24) number of jobs were created in the economy when the output of the food delivery platform sector increased by Rs 10 lakh.
The employment to output ratio — the number of jobs per Rs 10 lakh of output — in the food delivery platform sector for 2021−22 was 1.7. Thus, for every one job in the food delivery platform sector, there were 1.9 jobs created in the entire economy through the sector’s linkages with rest of the economy, the report said.
The employment to output ratio for 2023−24 was 1.1. Thus, for every one job in the food delivery platform sector, there were 2.7 jobs created in the entire economy, the report said.
Among service sectors, it ranks seventh in terms of output multiplier and second in terms of employment multiplier, surpassed only by the hotels and restaurants sector, the research found.
The notable findings come amid a heated debate over the condition of people engaged in the gig economy. A section of food delivery workers employed by Swiggy and Zomato went on strike last week to demand higher wages and better working conditions.
While some have come in support, industry leaders have highlighted the employment generation in the sector while stressing on continued improvement in contract policies for workers' benefit.
