India’s burgeoning gig economy, primarily represented by online delivery platforms Zomato and Blinkit, is currently navigating a tumultuous landscape marked by worker unrest and demands for improved conditions. Deepinder Goyal, the CEO of both platforms, recently highlighted the all-weather ability of his companies at a press conference. He beamed when he said that they transported 75 million orders to 63 million distinct customers—on New Year’s Eve! This advancement comes against a backdrop of morale-plummeting tensions between gig workers and platform corporate overlords.
Goyal even went so far as to call striking workers “miscreants,” a statement that has earned him condemnation from all sides. The anger among these workers is reflective of the current, widespread, underpaid, overworked, and highly organized labor movement. That’s the warning from a union that represents these workers. They warned of further industrial action to come if the platforms fail to enter negotiation on their demands.
Raghav Chadha, the young AAP opposition politician (and one of the new leaders in India), has promised to fight for the workers’ rights within and beyond parliament. His commitment marks the rising political recognition of gig workers’ concerns in India, where the pandemic has amplified the vulnerabilities of workers in the gig economy.
When pressed on the model’s safety, as a 10-minute delivery model is bound to encounter sharp criticism on this ground, Goyal didn’t hesitate to scoff at fears. To show what’s possible, he detailed how riders can hit these close deadlines with the help of an intelligent investment in dark stores. These stores function as extremely localized warehouses. In addition, this precious infrastructure has given them quick delivery times that have become a keystone of their operational excellence.
At the same time, the legal landscape surrounding gig work is changing. In 2021, a London court ruled in a landmark decision. The court deemed Uber drivers as employees who have a right to minimum wages and holiday pay. This newfound precedent might provide momentum to expand future conversations within India. A new platform workers code goes into full effect this year, granting insurance coverage and social security protections into the mix for workers who complete just 90 days on platforms annually.
Both Zomato and Blinkit have achieved important milestones. They continue to run on decimal-point thin margins of 2.5%-4.5% for food delivery and have recently announced losses on grocery sales. India’s gig workforce is estimated to be about 12 million. By the end of this decade, it is projected to double to 24 million, compounding dangers and difficulties in the decade to come. Recent surveys show that more than 61 percent of these gig workers identify as full-time employees. This finding underscores a significant change in how employees view their positions in this industry.
Goyal touted that his platforms deliver a tapestry of social security shield for workers. These protections cover insurance, guaranteed rest days, and access to pension schemes. The attrition rate within the gig workforce remains high at 65% annually, raising questions about job satisfaction and worker retention.
Kasim Saiyyad, a PhD candidate researching labor dynamics, echoed the harsh economic reality that many gig workers today are experiencing. He stated, “Such work often represents economic desperation rather than genuine choice.” This important pro-worker perspective underscores the not-so-great unpredictability of gig work and its impact on lasting economic mobility.
In response to criticisms regarding the fairness of gig work systems, Goyal argued, “If a system were fundamentally unfair, it would not consistently attract and retain so many people who choose to work within it.” His claim further highlights an intricate dynamic between labor attraction and recruitment practices in the gig economy.
As the gig economy continues to evolve in India, stakeholders are grappling with the balance between operational efficiency and worker welfare. Now unions, politicians, and platform executives are all at the table having important conversations. The continued conversations among them will determine whether gig workers in the country will be protected or exploited.