News · via Inc42

Uber, Eternal and Porter quit Karnataka gig board

Uber, Eternal and Porter have exited the Karnataka Platform-Based Gig Workers Welfare Board while Amazon India stays on. The exit reason is attributed to ET reporting, not confirmed by the companies.

The signal
  • Uber, Eternal and Porter have exited the Karnataka Platform-Based Gig Workers Welfare Board constituted under the state Act of 2025.
  • Inc42, citing ET reporting, said the companies do not want to sit on a statutory body created under a law they have challenged in the Karnataka High Court, and the companies have not confirmed this themselves.
  • Amazon India remains a member and is not involved in the litigation, while Delhivery, Namma Yatri and Yulu have agreed to join.
  • The welfare fee notified in February 2026 is 1% of each transaction with caps of 50 paise for food and grocery delivery and two-wheelers, 75 paise for three-wheelers and Rs 1 for four-wheelers.

Uber, Eternal and Porter have exited the Karnataka Platform-Based Gig Workers Welfare Board, the statutory body constituted under the Karnataka Platform-Based Gig Workers (Social Security and Welfare) Act, 2025.

Inc42, attributing the reason to ET reporting, said the companies “do not want to remain part of a statutory body created under a law they have challenged in the Karnataka High Court.” That reason has not been confirmed by the companies themselves, and the report carries no direct quotes from named individuals.

The levy underneath the dispute was notified in February 2026 at 1% of each transaction, subject to category-specific caps. Food and grocery delivery is capped at 50 paise per transaction. Ride-hailing is capped at 50 paise for two-wheelers, 75 paise for three-wheelers and Rs 1 for four-wheelers. We covered the fee structure when it was notified. The news now is who is willing to sit on the body that administers it.

The sharpest detail is that Amazon India remains a member and is “not involved in the ongoing litigation.” Delhivery, Namma Yatri and Yulu have agreed to join the board. So the board is not emptying out, it is changing composition, and the split runs along the line of who is suing.

Coverage is still thin either way. Only 15 platform companies, collectively representing about 7 Lakh gig workers, have registered.

Eternal is Blinkit’s parent, which is why this belongs in a quick commerce operator’s reading rather than a policy analyst’s. Nothing is reported about Blinkit’s own position on the board or the fee.

The Act has not been struck down or suspended. It is under challenge in the Karnataka High Court.

For a brand, this levy lands on the platform, not on you. A paise-level cap is trivial per order and structural in aggregate, and no per-order or annual cost figure has been published, so do not build one. The thing worth tracking is what platform take-rates do over several quarters as compliance costs accumulate. A law under active challenge is not something you can plan around in either direction, so leave your commission assumptions where they are for now. What you can usefully note today is which of your platforms are litigating and which are complying, because that is a reasonable early read on how each will respond when the next state levy arrives.

Source

Zane’s analysis draws on original reporting by Inc42. Read the original report.

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