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Copyright: WageIndicator - Data collected in June 2023
India: New Trends, New Platforms
DID YOU KNOW?
- The number of gig workers in the IT sector has increased by 40 % in 2023.
- Compared to pre-pandemic levels, India showed 13X increase in demand for gigfication.
- Despite a 36.45 % drop in the rate of hiring in the past six months, the demand for gig workers earning more than ₹15,000 per month increased by 21.38 %.
‘Gigification’ refers to breaking down critical work into smaller tasks, thus eliminating the challenge of talent utilization.
10-minute delivery's BTS
- Blinkit rolled out its new payout structure, which slashed the minimum payout per delivery to ₹15 from ₹25. As a result, it lost around 1000 delivery partners to rival platforms.
- The new payout structure of Zepto is forcing drivers to drive rashly to get incentives. Without incentives, the salary is too meager.
Trends: New Platforms to Counter Giants
- Employing a software as a service (SaaS) model, WAAYU does not charge any commission fees.
- This will allow the restaurants to price their dishes competitively and pass the savings on to customers.
- Auto union launches ‘Namma Yatri’ app to counter Ola, Uber.
- It aims to tap into the market with affordable fares for customers by removing the intermediaries
- Offers better working conditions.
- Pays more per delivery than Swiggy or other top giants.
Labor Codes: Is It An Illusion?
- Tamil Nadu Food and Allied Products Delivery Workers Union protested against Swiggy in Chennai, citing that the company pays them only ₹5 per km, insufficient to cover petrol costs. Their demands also included pay parity among staff, new uniforms and new delivery bags at set intervals.
- On May 17, in a rush to deliver more orders, a Swiggy delivery rider made the decision to work extra hours until around 1:30 am. During his last delivery around 1:15 am, he was assaulted by criminals in the Chattarpur area of South Delhi. Aayush Rathi, research lead at The Centre for Internet and Society (CIS), says, one in three people who go to work fear being robbed or facing physical assault.
- Telangana Gig and Platform Workers Union (TGPWU) started a campaign against cab aggregators such as Uber and Ola in Hyderabad and stopped taxis to and from the airport. Citing that the fares are unacceptable as per today's cost of living, the cab drivers demanded a base remuneration of ₹1200 for a 25-30 km trip and ₹1700 for a 45-50 km trip. At that moment, they said, a trip to anywhere in the city from the airport costs about Rs 600.
In 2020, the Indian government passed the labor codes, which included social security for gig workers, but it hasn't been implemented.
Looking at above incidents, the companies are struggling to provide basic remuneration, safety, and insurance.
Once implemented, will the companies be able to provide a better life to their 'Partners'?
Initiatives by Companies
The Shelter Project
A new Zomato resting point was set up at Bengaluru's Vega city mall. It can be used by other platforms' delivery partners too. High-speed internet, first aid, phone charging ports, washrooms, and drinking water, etc. are some facilities available.
Nari Shakti
Flipkart partnered with Deepalaya, a leading NGO supporting underprivileged women, youth, and children, to launch the program to empower girls and women from marginalized communities.
It will provide essential vocational skills to over 600 young girls and women that will help foster the seed for being financially self-dependent, thereby paving the way for sustainable livelihoods.
MMU
Zomato collaborated with Dial4242 to provide ambulance services and medical support through mobile medical units (MMUs) to delivery partners.
With this, the delivery partner of Zomato can get their free health checkups and eye testing done at convenient locations.
Government-backed ONDC also debuted, and there is hardly any sign that ensures its edge over existing players, but gradually it can pace just like the UPI