Swiggy is one of the leading food and grocery delivery companies in India. Since its foundation in 2014, Swiggy has served millions of people hot meals every day. In recent years though, the company has been facing some issues with its delivery riders. Riders often ask Swiggy to raise their pay. This time the riders have started a strike in the biggest city of India, Mumbai. How will this strike affect Swiggy? Let’s find out, but before doing that we have to understand what the strike is all about and how it affects the company.
Reason Behind The Strike
Earlier this month, thousands of Swiggy riders started a strike in Mumbai which is the biggest market of Swiggy. The riders alleged that the company was not paying them enough money to deliver the food and groceries. According to the riders, their delivery radius was extended from 4Km to 6Km but at the same time, their base pay remained unchanged at Rs 20. The final payout to the rider includes their base pay and compensation for the distance travelled to deliver the goods.
Swiggy delivery partners are not employees. The company does not pay a fixed salary to the riders, they are paid according to the orders they deliver. The strike was initially started by the workers who were a part of Rashtriya Karmachari Sena but later on, workers from many unions joined the strike. The same problem seems to be with Zomato riders as they were also on strike on 9th October. On top of this, there were some riders who were delivering the goods but the people on strike forcefully stopped them from delivering by snatching their deliveries.
How Did The Strike Affected Swiggy
For starters, many people who used to order food and groceries from Swiggy are now ordering them through different apps that are the direct competitors of the company. On top of that many people have stopped using Swiggy altogether. During the strike, there were many tweets addressing the issue and asking the company to fix it as soon as possible.
Another problem was that the orders were not getting cancelled straight away, rather they were taking a lot of time. A person on X mentioned in a tweet that he ordered groceries from Swiggy Insta Mart and the ETA was 20 min, but he didn’t receive his package even hours later. This frustrated a lot of customers which severely affected Swiggy’s image nationwide. Due to the strikes in Mumbai, there is a chance that riders all around India might also start doing something like that which will further affect the company and this will severely affect Swiggy share prices.
Strike’s Affect On Swiggy Share Prices
How this strike will affect Swiggy, is yet to be seen. But one thing is for sure, this strike will affect the revenue and public image of the company. As we all know Swiggy is not yet listed on any stock market like NSE or BSE. So the only way the company can sell its share is through the unlisted share market. Here the prices of shares are decided through the company’s financial reports like revenue, EBITDA and PAT. This strike will directly affect these financial metrics and as a result, Swiggy share prices might see a downward spiral. This way the company might have to deal with some severe setbacks. That being said, this is not the first time that Swiggy riders have started a strike, they have done it before. This might give Swiggy assurance that their financial metrics and share prices will not plummet.
The financial metric of Swiggy like revenue has increased almost 2 fold in the last few years which is a good sign for investors. Along with that, Swiggy share prices have also stayed stagnant for some time now. So this might be a good time to invest in swiggy unlisted shares. But if you want to invest in shares then there are some things you’d want to keep in mind to make sure that you don’t bear losses.
Things Investors Should Keep In Mind Before Buying Stocks
Buying and selling unlisted shares can be a bit risky if you don’t do it through certified and trusted broking platforms. Also, before investing any shares, make sure that you read the company’s financial reports of the last few years as they can be a make-or-break factor.
If you’re planning on buying unlisted shares then you should only do it through trusted online trading platforms like Stockify. It allows you to safely buy and sell shares and on top of that, it also provides you with the latest financial reports of any particular company. So before buying unlisted shares visit Stockify and do a deep analysis of the company’s financial metrics.