Uber, Eternal and Porter have withdrawn from the Karnataka Platform-Based Gig Workers Welfare Board, citing their objection to a statutory levy under a law they have challenged in the Karnataka High Court. The companies, along with others like Zepto, Swiggy and Urban Company, have deposited around Rs 4 crore as a welfare fee for the April to June quarter with the court, pending the litigation outcome, according to medianama.com.
The Karnataka government has invited other platforms to fill the vacancies left by these companies. Delhivery, Namma Yatri and Yulu agreed to join the board, while Amazon India remains a member as it is not part of the legal challenge. The board includes representatives from platform companies, worker unions, government officials and external experts, collectively representing about 7 lakh gig workers registered with 15 platform companies.
The platforms support social security for gig workers but argue the levy is premature since the state has not yet notified the schemes the funds will finance. They also expressed concerns about the levy’s impact on their cash flows. The government had estimated in January 2026 that the levy would generate Rs 250 crore to Rs 300 crore annually. The board’s composition and levy mechanism have been contested in court, reflecting tensions between regulatory efforts and platform companies’ operational concerns.
Eternal, Zepto, Swiggy, Urban Company, Meesho and Uber India have deposited the welfare fee with the High Court subject to the litigation outcome, while Yulu paid the board directly. The next significant update will depend on the Karnataka High Court’s ruling on the legality of the levy and the board’s statutory framework, which will shape the future of gig worker welfare regulation in the state.