Unseen Difficulties Of Gig Workers Of India

Think, be it a hot summer day of 45°C, flooded by heavy rain, or the city covered with pollution. Whatever the weather or time, you can order almost anything with just a few taps on your smartphone. You live comfortably at home while someone else delivers your order to your doorstep. These people are called gig workers. They make our lives easier, but have you ever thought about their story?

These workers are the backbone of the Modern facility, especially during lockdown when they were called “Covid Warriors” and “Lockdown Lifeline”. Nevertheless, many of them work long hours with low salaries and low benefits. This post tells about the reality of India’s gig economy, the challenges faced by these workers and what can be done to help them.

Who Is A Gig Worker?

The word “gig” means a temporary job or performance. Previously, musicians and comedians often used the term. He got money for every show instead of regular salary. The term began to be used for temporary paid jobs in 1952 when writer Jack Kerouac wrote about working as a breakman on a railroad. Today, freelancing also falls in this category.

The gig economy has grown very quickly over the last 10 years, and especially after COVID. This growth has changed the way many people work and live.

Two aspects of gig work

There are two main types of jobs in the gig economy:

Service-based gigs: These jobs are for low-to-semi-skilled workers. Think of a delivery agent from companies like Uber, Ola, Zomato, Swiggy, Urban Company, Porter, and Zepto. These are often called blue-collar gig workers. When people talk about gig workers, they usually mean this group.
Knowledge-based gigs: These are high-skilled jobs. Examples include Consultant and Data Scientist. These are often called white-collar gig workers.

Most discussions about gig workers focus on service-based roles. These are the people who bring digital platform services to the real world, which are different from ordinary office desk jobs.

Promise Vs Reality

On paper, the gig economy appears to offer many benefits for both companies and workers.

Benefits for companies: Companies can hire workers only when they need them. If they are not satisfied then they can also fire the workers quickly. This means fewer long-term contracts and fewer commitments.
Benefits for workers: It is believed that workers get flexibility. They can choose when and where to work. They do not need to go to office. They can earn extra money by working for multiple companies at once. For some people, it is a way to earn side income along with main job. It sounds good, but the reality is often different.
Bitter truth: These benefits are mostly theoretical. In fact, the situation is difficult for many gig workers. According to a 2022 report by the NITI Commission, the number of gig workers in India increased from around 3 million before the COVID pandemic to 7.7 million by 2021. It is expected that this number will reach 23.5 million by 2030. India leads the world with 24% of online labour market share, according to the Oxford Internet Institute’s Online Labour Index.

This growth shows that for most people in India, gig work is not just extra income. This is his main job. A 2024 Ipsos Research Survey found that for 88% of gig workers, this work is their primary source of income.

Despite their hard work, many people struggle with money crunch. A survey by the National Council for Applied Economic Research showed that a gig worker in India works about 69.3 hours every week. It’s like working 10 hours a day, seven days a week, with no time off. Other workers work an average of 56 hours per week.

Even after working for so long, 75% of gig workers face money problems. They earn on average just ₹18,000 per month. This is often not enough to meet their daily expenses. In September 2020, six months after the lockdown, a study by Florish Ventures showed that 90% of gig workers said their salaries had gone down. Nearly half, 47%, could not pay their bills without borrowing money.

Why “Partners” Aren’t Actually Partners

Many gig companies call their workers “partners”. Companies use names such as “Captain” or “Expert”, but “Partner” is the most common. In business, a partner shares work, profits and losses. But this is rarely true for gig workers.

Hidden expenses and no support

Gig workers bear the expenses of their own equipment, such as scooters or bikes. They also bear the expenses of petrol and maintenance themselves. For example, if a taxi driver drops a customer and then has to drive 15-20 km to find another ride, the company does not share the cost of petrol for that empty ride.

One worker said, “If I’m riding my bike, and it takes ₹100 petrol, if I don’t get an order, who will give ₹50 of that? Will the company pick it up? That’s what it means to be a partner.” This clearly shows the lack of partnership.

Avoiding legal responsibilities

The term “partner” is often used to avoid legal responsibilities. If companies called these workers “employees”, they would have many responsibilities. These include:

Providing health insurance.
Taking responsibility for work-related accidents.
Paying minimum wages and taxes.

A 2022 study by the Oxford Internet Institute’s Fair Work Research Project looked at 11 Indian platforms. Not a single one could show that their gig workers earn at least the local living wage after covering all work expenses. Another study on Ola and Uber drivers in Hyderabad found that around 40% of a driver’s daily earnings are spent on petrol or diesel. Many drivers work 12-14 hours a day. Considering all the expenses and inflation, their earnings hardly reach the minimum wage. This forces them to work even longer hours.

Companies call themselves “tech aggregators,” “mediators,” or “facilitators”. They do not use the word “employer” to avoid legal problems and excessive expenses. They claim to remove middlemen, but they themselves become tech-based middlemen, charging 15% to 25% commission on every service.

Problems With Algorithms And Apps

The software and algorithms that these tech companies use can create big problems for gig workers.

Sudden account block

Take the case of a cleaner Ankur working in an urban company. He worked six days a week, 12-14 hours a day, traveling between Delhi and Gurgaon. One day he met with an accident and had to cancel five scheduled tasks for treatment. The next day, the Urban Company blocked his account forever. Reason given “for cancelling more than 5 jobs in a month”

Many gig workers have to face this. Accounts may be banned for several reasons:

Customer complaints.
Low app ratings.
Taking too many holidays.

This eliminates the promised “flexibility” of gig work. Workers feel that they are being forced to follow strict rules, otherwise they will lose their jobs. This may seem like modern slavery. For example, workers at Urban Company claim they need a rating of at least 4.7, a response rate higher than 70%, and cannot cancel more than five jobs in a month.

Wrong ways

Companies sometimes use workers’ payments to give discounts to customers. Last year, more than 200 Blinkit Dark stores in Delhi NCR closed down as delivery executives went on strike. What was his complaint? Blinkit reduced the payment per order from ₹50 to ₹25, and then to ₹15, plus a small distance fee.

No way to complain

Gig workers have almost no way to complain against companies. In a tragic incident in January 2023, Mohammed Rizwan, aged 23, was killed when he fell from the third floor while delivering Swiggy’s order while trying to escape a customer’s dog. Customer gave ₹500,000 as settlement, but Swiggy gave nothing. The company claimed that Rizwan was using his brother’s account, so he had no responsibility.

Often, if workers have a problem, there is only a chatbot to help them. They cannot speak directly to a human representative. Companies have started using artificial intelligence or algorithms instead of human managers to handle complaints. While customers have many ways to complain and get refunds, the system provides very little help to gig workers. This often leads to strikes. • February 2023, Guwahati: Employees of Ola, Uber and Rapido went on strike as earnings were falling and the company’s commissions were rising.

February 2023, Hyderabad: 2,500 Ola and Uber drivers protest over higher commission rates.
April 2023: Blinkit employees protest rate cuts, but rates stay the same.

How Ratings Affect Livelihood

Many people don’t fully understand the impact the company’s rating system has on gig workers. If an Uber or Ola driver gives good service, some people give 3 or 4 stars, and save 5 stars for a “great” service. They can also reduce the star for minor issues such as the driver having trouble finding a location, being a little late, or not having a proper change.

But, for gig workers, ratings below 4.5 stars can often mean job losses. This directly affects their family’s ability to feed. So, the next time you rate a service, think about giving 5 stars by default. Ignore minor problems unless the worker makes a major mistake. Saying thanks for their hard work and dedication means a lot, especially in difficult situations.

What Can Be Done?

The problems gig workers face require strong laws. Traditional labor laws in India do not cover gig workers. Companies easily find shortcomings by avoiding the “employer-employee” label.

New laws and definitions

In 2020, the Government of India passed a Social Security Code, which defined a gig worker as “a person who works outside the traditional employer-employee relationship or participates in the arrangement of work and earns from such activities”. This definition is very big. The purpose of this Act is to provide social security benefits such as

Life and disability cover
Accident insurance
Health and maternity benefits
Old age security

However, this law has only been drafted and has not yet come into force. At the same time, it uses different definitions for “gig workers,” “platform workers,” and “unorganized workers”, leading to confusion as to how the plans will apply.

State-level efforts

While the central government law is waiting to be implemented, some states are taking action:

Rajasthan (2023): The Rajasthan Platform-based Gig Workers (Registration and Welfare) Act was the first of its kind. Includes:

Registration of gig workers with the state.
Access to social security schemes.
A system for handling complaints.
State-funded welfare board, which has received ₹2 billion.
Fines on companies that don’t follow rules.
An additional 1%-2% cess on platform-based transactions to fund these benefits.
Benefits include accident and health insurance, maternity leave, pensions and scholarships.
Karnataka (2024): A similar law, the Karnataka Platform based Gig Workers Social Security and Welfare Bill, 2024, has been proposed. Companies such as the National Association of Software and Service Companies are already opposed to the bill. They claim that this will harm their business by requiring a minimum notice period for termination and algorithmic transparency.

Global Solutions

Other countries are also already implementing solutions to deal with these issues:

Thailand and Malaysia: Gig workers get health and accident insurance, funded by a 2% cess on every ride.
America: National Labor Relations Board encourages Uber and Lyft drivers to form labor unions.
UK and Netherlands: These countries believe gig workers are unfairly classified. They are taking steps to re-classify them as employees.
European Union (December 2023): Platform Workers Directive passed, giving rights and protections to all gig workers in Europe. If workers meet at least two out of five criteria, they will be considered regular employees, and companies will have to prove the opposite.

To understand this problem more deeply, you can watch Kunal Kamra’s documentary on the dark side of the Indian start-up ecosystem.

Open Your Heart To Gig Workers

Next time you open your door to take an order, try thinking about that gig worker’s journey. Remember the hard work they have put in, especially when they are facing difficult situations.

If the service was satisfactory, always give a 5-star rating by default.
If you have a problem with your order, complain through the app instead of telling the delivery person directly.

Your small actions can bring a big change in the lives of these hardworking people.

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