Karnataka HC refuses to stay Gig Workers Act, orders Swiggy, Zepto, Eternal to deposit welfare fees
The Karnataka High Court declined to halt the state's Gig Workers Act, directing platforms including Swiggy, Zepto, Eternal and Urban Company to deposit welfare levies with the court registry within three weeks. Fees run up to Rs 1/ride plus a 1% levy on food and grocery deliveries. Next hearing August 14, 2026.
Karnataka HC refused to stay the state's Gig Workers Act, directing Swiggy, Zepto, Eternal and Urban Company to deposit welfare fees (up to Rs 1/ride plus 1% on food/grocery deliveries) with the court registry within three weeks.
Why this matters
Adds regulatory cost pressure as Swiggy expands via LYNK into food and grocery retail, faces restaurant pushback with Zomato, and manages delivery-partner scrutiny after a viral fine dispute.
retail-company signals accelerating at +613000% QoQ.