IPO-bound Zepto faces labour complaint in Delhi over worker exploitation allegations

Zepto, the quick-commerce unicorn, has come under fire in Delhi after the Rajdhani App Workers' Union (RAWU) filed a formal complaint with the city’s labour department, alleging labour law violations by the company and its third-party vendor, Kilton Geo Engineering Pvt. Ltd.

According to RAWU, delivery workers associated with Zepto are facing exploitative working conditions, wage discrepancies, lack of social security, and arbitrary dismissals—all allegedly facilitated through Kilton, which manages last-mile delivery operations for the platform in certain zones. RAWU slammed Zepto’s Rural Mobilisation Program (RMP) for imposing digital bonded labour and exploitative working conditions on almost 50 delivery workers.

In a formal complaint with the Delhi Labour Department, RAWU accused Zepto of pushing wages to below subsistence levels.

The complaint marks a significant escalation in the ongoing tensions between app-based gig workers and delivery platforms, which have faced increasing scrutiny for their employment practices.

RAWU reportedly has demanded immediate government intervention, alleging that the firms are bypassing labour protections by misclassifying workers as independent contractors rather than full-time employees entitled to minimum wage, ESI, PF, and other benefits.

“This is a blatant violation of labour rights. Workers are being hired, fired, and penalised without due process or accountability,” said a RAWU representative.

The Delhi labour department is expected to launch a preliminary inquiry into the allegations. The outcome could have broader implications for how gig economy players operate and engage with their frontline workforce in India’s largest urban markets.