Google and Reliance Retail-backed hyperlocal delivery app, Dunzo has threatened to ban its delivery partners if they participate in a strike of any sort, as per screenshots of the message shared on Twitter.
A translation of the message – sent out in Hindi – read “Warning! You have been informed that (delivery partner) IDs found on strike will be permanently suspended. So, please do not be a part of any strike or support any strike.”
Condemning the move, the Indian Federation Of App-Based Transport Workers (Ifat) wrote to Kabeer Biswas co-founder and CEO, Dunzo. The union said it was just listening to grievances of its members and other related-parties while Dunzo sent out these warning messages even before anything materialised, to nip the effort in the bud.
The Ifat is a registered trade union representing on demand app-based drivers and riders in India. Locally, delivery partners from Swiggy, Zomato, Ola, Uber, Urban Company Zepto, Rapido and Porter were all its members.
“We take strong objection to your above warnings to Dunzo riders. We hope you are aware that the right to strike is a statutory and a legal right in our country. Rather than threatening the delivery riders, Dunzo would do well to address issues of decent work conditions for their workers in areas such as minimum wage, health and safety and social security,” Shaik Salauddin, national general secretary, Ifat wrote in his mail to Dunzo’s Biswas.
“Quick grocery delivery within 10-20 minutes by Dunzo and the marketing gimmicks used by the company are taking a serious toll on the delivery riders. Quick commerce industry and companies like Dunzo need to introspect their business model which is based on profitability, at the cost of an underbelly of exploitation of its workers. Your business model exploits the steady supply of youth below 30 years ready to do this work without even knowing what their rights are,” his letter added.
Replying to the developments, a Dunzo spokesperson said the company was looking into the matter. “Our delivery partners are very important to us and we want to make sure we do right by them. If this message was sent by us, we apologise for the mistake and will take necessary corrective measures,” the spokesperson explained.
Dunzo was valued at about $764 million according to Tracxn data, from the roughly $130 million it was valued in October 2019. It was poised to become a unicorn soon, according to a report by ASK Private Wealth Hurun India Future Unicorn Index 2022, released in June. It has raised over $400 million in funding so far – including its Series E round of $240 million where Reliance Retail picked up a 25.8% stake in the company. Google, Alteria Capital, Lightrock, Blume Ventures, 3L are a few of its backers.