‘1.5 Lakh Jobs, ₹1,000 Cr in Taxes’: Zepto CEO Defends Indian Startups Amid Piyush Goyal’s ‘Delivery Boys, Girls’ Remark
In recent times, Indian startups have been a source of national pride. From e-commerce giants to fintech disruptors, India’s startup ecosystem has grown exponentially, becoming one of the most dynamic and vibrant sectors of the economy. However, recent comments made by Piyush Goyal, India’s Union Minister for Commerce and Industry, have sparked a wave of controversy and reflection. Goyal, in a public statement, dismissed some startup models as mere “delivery boys and girls,” insinuating that they weren’t contributing meaningfully to the country’s economy or employment.
These remarks were directed at a section of startups that operate in the delivery, logistics, and e-commerce sectors, which have significantly grown over the last few years, especially in urban areas. In response to this, Zepto, one of India’s leading quick commerce startups, has taken a bold stance, defending the role and contributions of startups in the Indian economy.
Zepto’s CEO, Kaivalya Vohra, made a passionate defense of Indian startups, highlighting their key contributions in terms of employment generation, taxes, and overall impact on the economy. He pointed out that Zepto alone, in a short span, had generated over 1.5 lakh jobs and contributed more than ₹1,000 crore in taxes, emphasizing the economic significance of startups.
This article explores the core of the debate, defends the importance of startups in India’s growing economy, and highlights the valuable contributions these companies have made despite the dismissive attitude expressed by some government officials.
The Context of the Controversy
The remarks made by Piyush Goyal were in the context of India’s broader economic debate about employment and the future of jobs. In a speech that garnered attention across social media platforms, Goyal seemed to suggest that certain sectors of the startup world were overhyped and that much of the work involved in these businesses did not contribute meaningfully to the economy in terms of skills, productivity, or value creation.
Goyal referred to sectors like logistics and delivery services—industries that have seen rapid growth due to the demand for quick commerce and last-mile delivery services. These sectors have been dominated by companies like Zomato, Swiggy, Zepto, and Dunzo, which have built business models around efficient, rapid deliveries of food, groceries, and essential items. The rapid rise of these companies, in part, led to an ecosystem of gig workers, often referred to as “delivery boys” and “delivery girls,” who manage the last-mile logistics.
While it’s true that the gig economy, a large part of which is represented by delivery jobs, has raised questions about job security, wages, and working conditions, the sector’s economic contribution cannot be easily dismissed. Kaivalya Vohra, the CEO of Zepto, one of the leading players in the quick-commerce market, stepped up to defend the sector’s contribution to the economy.
Zepto’s Role in Employment Generation
Zepto, founded in 2021, is part of the growing quick commerce or q-commerce sector, which focuses on delivering groceries and other essentials in record time, often in as little as 10 minutes. The model has quickly become a staple in urban India, as convenience-driven consumers look for faster and more efficient ways to access everyday products. Zepto’s ability to scale quickly across multiple cities has enabled the company to generate substantial employment.
Vohra pointed out that Zepto alone had created over 1.5 lakh jobs across the country. This includes a wide range of roles, from full-time positions in warehouse management, operations, and customer support, to gig-based delivery roles that are a key part of the platform’s last-mile logistics. Zepto’s business model also creates opportunities in allied sectors like supply chain management, technology development, marketing, and logistics.
In an economy where unemployment and job creation have remained persistent challenges, the importance of startups in creating both direct and indirect employment opportunities cannot be understated. The rapid growth of the tech ecosystem has resulted in jobs that require diverse skill sets and has opened doors for people from different socio-economic backgrounds to enter the workforce, particularly in tech and logistics sectors.
By contributing 1.5 lakh jobs in just a couple of years, startups like Zepto are playing a crucial role in addressing India’s unemployment challenges, providing livelihoods, and offering new avenues for workers, especially in the urban economy.
Startups and Tax Contribution
In addition to generating employment, Indian startups are also significant contributors to the economy in terms of tax revenue. Zepto’s CEO further defended the startup sector by highlighting that his company alone had contributed over ₹1,000 crore in taxes to the government. This tax contribution comes from various sources, including income tax, GST, and other business-related taxes, which directly or indirectly support the country’s fiscal health.
Startups like Zepto are also driving innovation in the tech sector, which has long been seen as a key driver of economic growth. From research and development in AI and machine learning to logistics technologies, these companies are pushing the boundaries of innovation. By doing so, they not only contribute to the development of the Indian economy but also align with India’s ambition to become a global leader in technology and innovation.
Moreover, Zepto and similar startups have created platforms for smaller businesses (such as local kirana shops, grocery stores, and restaurants) to tap into the burgeoning digital economy. By integrating these businesses into the startup ecosystem, these companies are helping them grow, reach new customers, and contribute to local economies. This integration of micro, small, and medium enterprises (MSMEs) into the digital economy is crucial for driving overall economic development, especially in tier-2 and tier-3 cities.
The Role of the Gig Economy
While Piyush Goyal’s comments focused on the gig economy in the context of delivery jobs, the gig economy itself has become an essential part of India’s labor market. The gig economy in India includes a wide range of workers, from food delivery personnel to rideshare drivers, and has created flexible employment opportunities that were previously unavailable to many people.
For many workers, especially in urban centers, gig work offers flexibility, quick income opportunities, and relatively low barriers to entry. While there is ongoing debate about the nature of gig work, its role in offering immediate employment cannot be denied. As these workers are often employed through platforms like Zepto, Zomato, and Swiggy, they play a vital role in ensuring that services reach consumers efficiently and effectively.
The challenge, however, lies in ensuring that gig workers are adequately compensated, have access to social security benefits, and work in environments that prioritize their health and safety. Indian startups must continue to refine their models, ensuring fair wages, benefits, and job security for delivery personnel. The increasing conversation about fair treatment of gig workers is something that the startup ecosystem must take seriously, as it could shape the future of these businesses.
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Contributions Beyond Jobs and Taxes
Apart from employment generation and taxes, startups like Zepto contribute to India’s broader digital economy and entrepreneurial culture. In a country where traditional sectors like agriculture and manufacturing have historically dominated, the growth of the startup sector is opening up new avenues for growth, education, and skill development.
Startups also act as catalysts for innovation, creating new solutions that improve efficiency, enhance consumer experiences, and drive progress across multiple sectors. Whether it’s through AI, machine learning, data analytics, or cloud computing, India’s startups are leading the charge in technological development. These innovations are not only transforming the consumer experience but also contributing to the development of smart cities, digital infrastructure, and tech-enabled governance.
Conclusion: Startups are the Backbone of India’s Future
Amitabh Kant, the Zepto CEO, and many others in the startup ecosystem have made it clear: Indian startups are a driving force for employment, tax revenue, innovation, and economic growth. While Piyush Goyal’s remarks may have been an attempt to critique certain models of business, they overlook the broader positive impacts of the startup ecosystem on India’s economy.
The growing role of startups, particularly in the gig economy and digital sectors, cannot be ignored. These companies are not just about delivering goods and services—they are about creating a future where India is a leader in innovation, digital transformation, and entrepreneurship. If India’s government is to sustain and amplify the success of the startup ecosystem, it must continue to support these businesses, invest in their growth, and ensure that their positive contributions are recognized and celebrated.
Ultimately, Zepto, like many other startups, is more than just a delivery service—it is a vital part of India’s growing digital economy and a key player in shaping the country’s future.
