New Delhi, August 26: India’s quick commerce, logistics and retail sectors are expected to have a bitter, rather bleak, festive season this year for no fault of theirs. In recent months, over 15 stars have hiked their minimum wages, with some reaching almost 60%.
This sudden surge has left the entire quick commerce, logistics and retail sectors with far narrower margins, already impacted by high commodity prices, elevated freight charges and a weakening rupee- creating a multi-factor blow even as these companies ramp up hiring and inventory to meet festive demand.
According to government data, almost 1.2 crore Indians work in the gig economy in 2025, delivering parcels, meals and freight. As they represent a strong voting bloc, the states seem to have gone overboard to please them, at the cost of the financial viability of their employers.
The quick commerce sector remains the most affected, as revenues across the board haven’t helped make it into a financially viable service.
Employer associations are challenging the move, especially in states like Karnataka. The Karnataka High Court has refused to stay the order, forcing them to comply to prevent legal penalties.
Other firms are working to adjust pricing to maintain their margins, making small price increases against the risk of hurting consumer demand during the upcoming festive seasons.
