The Karnataka government may likely to introduce a 1 to 2 per cent transaction fee on popular aggregator platforms like Zomato, Swiggy, Flipkart, Amazon, Ola, Uber, and Urban Company, according to a report by Moneycontrol.
This fee, which will be passed on to a newly created welfare board, aims to provide a social security benefits to gig workers across these platforms, reported Moneycontrol.
Karnataka Govt is Reportedly Planning To Impose 1-2% Fee On Every Transaction at
— Ravisutanjani (@Ravisutanjani) October 18, 2024
• Amazon
• Flipkart
• Zomato
• Swiggy
• Ola
• Uber
• Rapido
• Urban Company etc
The Collected Amount Will Be Transferred To a Welfare Board for Security of Gig Workers
The aim of this move is a part of the state's initiative to improve the working conditions of the gig workers who all are engaged in the delivery services and other platform based roles or services.
According to the report, the fee will be applied to each transactions made through these aggregator. Moreover, it will cover a broad range of sectors including the food delivery, ride-sharing, e-commerce and so.
Furthermore, the report added, the funds collected through this will be directed towards the healthcare and insurance programs designed to support gig workers, ensuring they have access to essential benefits.
While the companies involved will not directly profit from the fee, consumers may feel a slight pinch in their wallets. The added 1 to 2 per cent could make orders a bit more expensive, potentially affecting frequent users of these services. However, the increased cost is expected to be minimal, with the greater focus on ensuring the well-being of the gig economy’s workforce.
According to Moneycontrol report, the initiative follows the introduction of the draft "Platform-Based Gig Workers (Social Security and Welfare) Bill, 2024" in June this year, which aims to bring much-needed social protections to a growing segment of the workforce.
The proposed bill will apply not just to well-known platforms like Zomato and Swiggy, but also to services like Rapido, Dunzo, Zepto, and Porter. Ride-sharing, food and grocery delivery, logistics, and e-marketplaces will all fall under its scope.
The Karnataka cabinet is expected to discuss the bill on October 24, with a possibility of it being introduced in the winter session of the state assembly later in December, added the report.