Transport union protests Dunzo 'warning to riders' about supporting strikes

A union representing transport workers has "strongly objected" to quick-commerce firm Dunzo allegedly asking delivery riders not to support strikes or other industrial action.

The Indian Federation of App-based Transport Workers (IFAT) is a registered trade union representing on-demand app-based drivers and riders. In India, this includes workers on platforms such as Ola, Uber, Swiggy, Zomato, Rapido, and Dunzo.

“We write to you today after receiving complaints from many delivery riders of Dunzo about tweets being circulated by your company team warning riders not to participate or support any industrial strike action and that the IDs of workers found to be involved in such action will be suspended permanently,” said Shaik Salauddin, national general secretary of IFAT, in a letter to Dunzo co-founder and CEO Kabeer Biswas.

“We take strong objection to your above warnings to Dunzo riders,” said the letter. “We hope you are aware that the right to strike is a statutory and a legal right in our country. This right is a process recognized by industrial jurisprudence and supported by social justice.”

A Dunzo spokesperson said that the company is looking into the matter. "Our delivery partners are very important to us and we want to make sure we do right by them. We are looking into the matter. If this message was sent by us, we apologise for the mistake and will take necessary corrective measures,” said the spokesperson.

IFAT said Dunzo, which is backed by Google and Reliance Industries, and the quick-commerce industry must introspect their business model. Providing employment by using terms such as ‘partners’ to circumvent labour laws is to exploit the vulnerability of delivery riders, it said.

“Your business model exploits the steady supply of youth below 30 years ready to do this work without even knowing what their rights are,” said IFAT. “For the companies employing them, human angle is hardly of any consequence in the cut-throat business.”

Early this year, Dunzo raised $240 million in its latest round of funding. The investment was led by Reliance Retail Ventures Limited, with participation from existing investors Lightbox, Lightrock, 3L Capital, and Alteria Capital. According to sources, Dunzo’s valuation crossed $800 million in this funding round. The company was valued at $300 million in March 2021.