Reality of Gig Workers in a booming Gig Economy

Gig economy has become an integral part of our daily lives particularly in large cities and metros of Urban India. Services related to transportation, food delivery and urban services have made the lives convenient for urban consumers and service users. Gig economy is considered to be the next happening thing where work would be based on flexibility and convenience. However, behind the booming ‘gig’ economy is the story of the ‘gig workers’. The report titled “Prisoners on Wheels? Report on Working and Living conditions of App-based workers in India” presents this story. This is based on a survey of 10,000 gig workers from eight cities of India – Delhi, Jaipur, Indore, Hyderabad, Bangalore, Mumbai, and Kolkata. The report is about cab drivers of  Ola, Uber platform and delivery workers of Swiggy and Zomato platform.

The report states that gig workers face the challenge of income instability, with earnings fluctuating widely, leading to financial uncertainties and this forces them to overwork to make ends meet. Gig workers also lack traditional employment benefits such as health insurance, retirement plans, and paid leave, which are common in more conventional jobs. Added to this is the job insecurity, as gig workers have no guarantee of stable employment or regular income, making them particularly vulnerable. As “contract workers,” gig workers also lack legal protections, leaving them open to exploitation without recourse to fair compensation, workplace safety, or protection from discrimination. The uncertain income and working conditions also negatively impact mental health, leading to stress, anxiety, and depression.

Gig work expanded in India particularly due to availability of affordable, low skilled labor. The gig workers could be either blue collar workers like delivery personnel and cab drivers or white-collar workers as digital marketers. As ‘contract workers’, they lack access to employment benefits such as minimum wages, overtime pay, severance pay, pensions, and other protections. Lack of regulation diminishes their bargaining power, and they also lack redressal mechanisms. The existing code on social security too has inadequate provisions for gig workers, who are also subject to algorithmic surveillance, further eroding transparency and accountability between workers and platforms.

Findings on Working conditions

The sample study of cab drivers indicated that 83% work more than 10 hours daily, with 31% working over 14 hours. 43% earn less than ₹500 per day after expenses. Most drivers (80.3%) are dissatisfied with the base fare offered. Many (66.6%) lack leisure time for their families, with 40.7% not taking a single day off per week. Sleep deprivation is prevalent, with 79.4% sleeping only 5-7 hours. Physical ailments are common, with 86.5% reporting knee, leg, foot, back, and head pains, while 98.5% experience mental health issues. Nearly half (47.1%) have faced violence at work. 83% have experienced ID blocking or deactivation, leading to financial instability. Many drivers feel that the commissions charged by companies are arbitrary, and 69% believe they should be compensated for dry runs, long pick-ups, and other job-related expenses.

Delivery persons face similar challenges, with 34.4% earning less than ₹10,000 a month after meeting expenses. The majority (89.9%) oppose the 10-minute instant delivery model as it is risky. 48.2% felt that they cannot take even one day off per week. 79.5% felt that they get 5-7 hours of sleep daily. Many (49.8%) have minimal leisure time. 55% work 10-12 hours daily. 48.7% were unable to take vacations or family visits. Physical and mental health issues are prevalent. 41.5% have faced violence at work. 87% were affected by ID blocking or deactivation.

The study reveals that a majority of app-based cab drivers are young (78% aged 21-40) and predominantly male (94%).  Most respondents are high school graduates (59.3%). The drivers mainly belong to nuclear, middle, or lower-middle-class families, with 61.1% supporting 3-5 family members. Hindus constitute 83.2% of the respondents, while Muslims make up 15.45%.

A significant number of drivers work for both Ola and Uber (49.6%). Most drivers (59.3%) have been working with app-based companies for 3-5 years, and 73.8% are owner-drivers. Swift Dzire is the most common vehicle for (41.4%). 36.6% of drivers are part of a union and 63.4% yet to be unionized. The industry is dominated by young, male, married individuals from diverse socio-economic backgrounds, with significant regional variations in employment patterns and vehicle ownership.

The study thus highlights the harsh realities faced by gig workers in India, particularly in platform-based industries. The lack of adequate labor rights and protections, coupled with challenging working conditions underscore the urgent need for comprehensive policy reforms to safeguard the interests and well-being of gig workers. The report recommends bringing improvement in working conditions of gig workers.

Recommendations on improving Working Conditions

The study recommends addressing the challenges faced by app-based cab drivers by focusing on improving their working conditions, earnings, and overall well-being. Key measures include treating drivers as employees and ensuring they receive at least the minimum wage for the logged in time. Until this is implemented, compensating drivers for dry runs, long pickups, time spent in traffic, idle time, customer cancellations, and income loss due to fuel price hikes is suggested. Standardizing metered fare rates and commission rates, with at least 80% of ride fare going to drivers, is also recommended. To prevent wage suppression due to oversupply, controlling the number of cars in metropolitan areas based on occupancy rates is proposed.

The report states that contracts between drivers and platforms should be simplified and made accessible in native languages, eliminating the current discriminatory and non-transparent practices. Health and safety risks, such as accidents and occupational hazards, should be mitigated by making companies liable to provide adequate insurance and benefits, as mandated by the Code on Social Security 2020. The arbitrary deactivation of drivers’ IDs is stated must be addressed with a clear grievance redressal mechanism and fair hearing procedures. Regulating working hours, improving earnings, and protecting drivers from algorithmic discrimination are mentioned to be crucial. The government should ensure data transparency, sharing provisions, and data rights for workers, alongside developing strong legislation to protect gig and platform workers.

It calls for implementing the Social Security Code and establishing a grievance redressal mechanism to safeguard workers’ rights. Special attention is to be given to improving working conditions for women on digital platforms, including providing access to clean public facilities and targeted social security schemes. The government must complement progressive state measures and introduce a tripartite social dialogue system between the government, platforms, and workers’ organizations to improve working conditions and wages. Access to easy and cheap credit facilities, especially for marginalized communities, are to be provided to facilitate entry into the cab-hailing industry and transition to electric vehicles.

The study highlights the need for prompt action against customer misbehaviour and violence at work. Customers should be sensitized to respect the dignity of drivers. The provision of waiting zones, rest areas, and hygienic facilities for drivers is also recommended. Globally, efforts are being made to formalize the gig and platform economy, with countries like Denmark and the EU setting examples through collective bargaining frameworks and establishing a baseline of rights for on-demand and platform workers. The Rajasthan Platform-Based Gig Workers Act and successful legal battles like those of the New York Taxi Workers’ Alliance also serve as models for ensuring fair treatment and protection of workers’ rights in the gig economy.

The recommendations for improving the working conditions of app-based delivery persons emphasize treating them as employees with assured daily earnings at least equivalent to the state minimum wage. Additional compensation should be provided for dry runs, time spent in traffic jams, idle time at restaurants, customer cancellations, and fuel hikes. A standardized rate of payment per delivery is suggested should include a minimum base rate, with extra pay based on time and distance. Transparency in app functioning, algorithms, incentive systems, and payment mechanisms is crucial. Health and safety provisions, including insurance coverage and social security benefits, are stated must be ensured, and the “10-minute delivery” policy should be discontinued. Multiple pickups and deliveries in a single trip are advised to be avoided, and unjustified ID deactivations must stop, adhering to the “Just Cause, Due Process” principle. Working hours should be capped, and mandatory registration of all delivery persons with state agencies should be implemented.

Contracts it is stated should be simplified, made transparent, and provided in languages understood by delivery persons. Companies must make all data accessible to the government and personal data to the delivery persons. The urgent implementation of the Social Security Code and adherence to ILO Convention 102 principles are mentioned to be necessary, along with a time-bound and independent grievance redressal mechanism. Delivery persons need to have access to elevators and restroom facilities, and a tripartite social dialogue should be introduced in the platform economy. The government should act on the G20 Declaration of 2023 to extend social protection to gig and platform workers. Additionally, efforts should be made to promote a safe and friendly environment for women delivery persons, provide access to easy and cheap credit facilities, and raise customer awareness about respecting delivery persons’ dignity. Discrimination in restaurants and gated communities should be stopped.

The report brings out the reality of gig workers, the challenges faced by them  and calls for policy reforms to address the challenges faced by gig workers. The study based on a large sample size is a must read to understand the status of gig workers.

Author: T Navin is an independent writer