Gig Workers and Large Companies: A symbiotic relationship under threat

Most gig workers are typically unskilled youth and benefit both monetarily and in skills through this employment.

The Indian gig economy has emerged in the past decade as a powerful engine of economic growth. Since the surge in the startup and new-age platform companies over the past decade, many of them continue to provide jobs to these “gig workers”. These gig workers are typically unskilled youth and benefit both monetarily and in skills through this employment. Large companies play a pivotal role in transforming the lives of millions of these “gig” unskilled workers, as these people get employment and wages commensurate to their tasks, with flexibility in work hours.

On the other hand, detractors of this gig economy point to many issues: lack of recognition of gig workers as employees, low and inconsistent wages, no pay transparency or guaranteed income, lack of benefits such as ESIC and PF, no social security or job security, opaque AI-driven employment decisions, long and unregulated working hours, inconsistent or arbitrary commission deductions and no predefined work environments.

The gig and platform economy in India has witnessed exponential growth, driven by advancements in technology, increased internet penetration, and a growing demand for flexible work opportunities. The gig economy encompasses a diverse range of work, including ridesharing, food & grocery delivery, urban services, freelancing, and other on-demand services. According to a NITI Ayog report on “India’s Booming Platform and Gig Economy”, the rise of the gig economy in India is changing the face of the workforce. The current estimation for gig economy jobs in India is at 8 to 18 million, which is projected to increase to over 90 million jobs in the non-farm sector in the next ten years. In the next decade, the gig economy in India will be $250 billion or almost 1.25% of India’s Gross Domestic Product.

The gig economy is a reality, and large companies and gig workers are responsible for each other’s success and growth, sharing a symbiotic relationship. The interdependence that binds them ensures a series of positive outcomes for both parties. Companies and policymakers should work towards:

* Ensuring the long-term sustainability of the gig economy

* Balancing economic growth with social equity

* Promoting ethical and fair practices within the gig economy

The above objectives are being achieved by large companies by:

1) Training and Upskilling Initiatives

Unskilled labour in India often seeks opportunities to improve their livelihoods and fulfil their aspirations. Large companies play a crucial role in transforming this workforce by investing in upskilling initiatives. They provide gig workers with training programs, certifications, and access to online learning platforms, equipping them with in-demand skills and opening doors to higher-paying opportunities. Swiggy and Zomato, major players in food delivery, have introduced skilling programs to enhance the professional skills of gig workers. These programs open new avenues for personal and career growth, while also raising the standard of service across the platform. Similarly, Amazon India provides training in safe driving, customer service, and efficient package handling, empowering workers with valuable logistics skills applicable within and beyond the Amazon ecosystem.

2) Using Technology and Promoting Innovation

In India, technology has significantly bolstered the gig economy by improving efficiency and expanding reach. Food delivery companies have utilized advanced route optimization algorithms to ensure timely deliveries while minimizing fuel consumption, reducing costs for gig workers. Similarly, Urban Company employs AI-driven tools to match customers with the best service professionals, enhancing earnings for gig workers. With the automation of tasks, Amazon, Flipkart, Delhivery, etc have streamlined tasks and made it less strenuous assignments. By continuously leveraging technology, companies are enhancing productivity of gig workers leading to higher earnings for the workers.

3) Worker Well-being and Better Work Environment

Ensuring the well-being of gig workers is crucial for the sustainable growth of the gig economy in India. Large companies are increasingly recognizing the importance of providing a safe and supportive work environment. Initiatives such as health insurance, mental health support, and safety training are becoming more prevalent. For example, Zomato has introduced shelter rest points to combat worker fatigue. Amazon has been working to get the people working at its sites enrolled under two key government programs: E-Shram (Pradhan Mantri Suraksha Bima Yojana) and Health ID (Pradhan Mantri Jan Aarogya Yojana).

4) Side Stepping the Negative Voices

The success of the gig economy model hinges on recognizing the interdependence between companies and workers, fostering upskilling initiatives, promoting innovation, and addressing the challenges faced by gig workers. As India's gig economy continues to evolve, a focus on collaboration and shared responsibility will be critical in ensuring its long-term success and positive impact on millions of lives. However, it has been seen multiple times that parties with vested interest prey on this partnership for their own commercial benefits.

As India's gig economy continues to grow, a focus on collaboration and shared responsibility by policy makers, governments, and companies will be critical in ensuring its long-term success and positive impact on millions of lives. The nay-sayers with vested interests do not factor in the interdependence between companies and gig workers. The future of India's gig economy hinges on empowering the large companies to be transformative forces, upskilling the workforce, fostering innovation, and propelling economic growth. It is equally important for the labour work force not to fall prey to the narrative of the vested interests and derail the gig economy.