Gig workers in India face serious challenges that badly affect their financial standing and well-being. People’s Association in Grassroots Action and Movements, and the Indian Federation of App-based Transport Workers study reveals these shocking realities regarding the working conditions of gig workers, such as app-based cab drivers, delivery persons, and platform workers.
Highlights of the study
Extended working hours and physical strain
- Around one-third of app-based cab drivers work for more than 14 hours every day, with more than 83% working for over 10 hours and 60% over 12 hours.
- An alarming social disparity has been observed, with over 60% of the drivers belonging to Schedule Castes and Schedule Tribes. They today work for over 14 hours a day.
- The study underscores that drivers feel exhausted due to long working hours, which exposes them to various risks including road accidents. That can have a serious impact on road safety.
Low income, high expense
- According to the report, over 43% of the workers earn less than Rs. 500 a day or Rs. 15,000 a month, after all cost-related deductions.
- 34% of the app-based delivery persons earn less than Rs. 10,000 a month. This income disparity widens the existing inequality gaps in society, causing a perpetual cycle of poverty and financial distress within these communities.
- High commission charged by the companies, which is around 31-40%, is the major cause behind the weakening financial standing of the drivers.
- Due to these lower wages, 72% of cab drivers face difficulties in managing their expenses, while 76% struggle to meet daily needs. For 68% of the drivers, expenses exceed earnings, pushing them into the cycle of debt.
Recommendations of the study
- The report recommends actions to ensure better compensation for workers, while completely removing provisions that cause arbitrary reductions.
- It recommends stronger social security for app-based workers and government intervention to ensure fairness of algorithms used by various platforms to monitor workers.
- It also recommends rethinking quick-delivery policies adopted by e-commerce platforms, such as “10-minute delivery”.
- Deactivation of workers’ IDs or blocking them for an indefinite period must be stopped.
Gig workers and Gig economy
- Gig workers are those who choose temporary employment instead of full-time work. They prefer flexibility and offer services to multiple companies simultaneously.
- The gig economy is the market where temporary job opportunities are offered and companies come into a contract with independent workers, seeking short-term engagement.
