The Gig Economy: Transforming Work, Opportunities, and Challenges

Context

According to a study conducted by the People’s Association in Grassroots Action and Movements, and the Indian Federation of App-based Transport Workers, Gig workers suffer from lack of social security, regulations.

Key Findings of the Study On Gig Workers in India

• Income Disparities: 

  • Over 43% of participants in the study earn less than ₹500 a day or ₹15,000 a month, after deducting all their costs. 
    • The study found that 34% of app-based delivery persons earn less than ₹10,000 a month, while 78% of them are spending over 10 hours each day at work. 

• Exposed to Road Accidents:  

  • Drivers are physically exhausted, and exposed to an increased risk of road traffic accidents, especially due to the ‘10-minute delivery at the doorstep’ policy of certain e-commerce platforms. 

• Expenses Exceeding Earnings: 

  • While 72% of the cab drivers said that they face difficulty in managing expenses, 76% of the delivery persons are struggling to make their ends meet.
    • 68% of cab drivers’ responses even show that their overall expenses exceed their earnings

• Unhappiness Over Rates offered: 

  • Over 80% of app-based cab drivers were not satisfied with the fares offered by the companies, while over 73% of app-based delivery persons showed dissatisfaction with their rates. 

• Deactivation of ID: 

• • Another major complaint of the workers is the issue of ID deactivation and customer misbehavior. 
    • A glaring 83% of the drivers reported that the issue of ID blocking affects them negatively, 47% stated that this issue extremely affects them.

• Customer Misbehavior:  

  • Customer behavior affects a significant majority (72%) of drivers in a negative way, while 68% of delivery persons are reportedly affected by it negatively.

What is a Gig Economy?

• A gig economy is a labor market that relies on independent contractors and freelancers rather than full-time permanent employees.

NITI Aayog Recommendations On Gig Workers in India

• Proper Estimation of Gig Workers: Have separate enumeration exercises to estimate the size of the gig economy and characteristic features of gig workers. 
  • This can be done by collecting information during official enumerations (PLFS, NSS or otherwise). 
• Catalyse Platformization: Introduce Platform India initiative (similar to Startup India), built on the pillars of Accelerating Platformization by Simplification and Handholding, Funding Support and Incentives, Skill Development, and Social Financial Inclusion.
  • This platform can help self-employed individuals to sell their produce to wider markets in towns and cities; Ferrying of passengers for hire etc. 
• Accelerate Financial Inclusion: Enhance access to institutional credit through financial products specifically designed for platform workers and those interested to set-up their own platforms.
  • For this, Leverage FinTech and platform businesses,
  • Classify unsecured loans to first-time borrowers on platform economy as Priority Sector Lending,
  • Special emphasis on access to formal credit for women, Persons with Disabilities (PwDs), or platform businesses started in small cities, towns, and villages in India 

News Source: The Hindu

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