QUICK DELIVERY APPS EXPLOITING GIG WORKERS

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Picture Courtesy:  THEHINDUBUSINESSLINE

Context

The rapid expansion of "quick commerce" platforms like Blinkit, Zepto, and Swiggy Instamart, promising deliveries in 10-15 minutes, has intensified the debate around the working conditions of gig workers.

What is Quick Commerce?

Quick Commerce (Q-commerce) is a next-generation e-commerce model focused on the ultra-fast delivery of small quantities of essential goods—within 10 to 30 minutes.

Unlike traditional e-commerce, which relies on large, centralized warehouses and 1–7 day delivery timelines, Q-commerce uses a hyperlocal model to meet immediate or impulse consumer needs.

How Quick Commerce Works

Q-commerce uses "dark stores"—small, local warehouses—for ultra-fast delivery, relying entirely on gig-worker delivery personnel.

• Legal Classification: Gig workers are classified as ‘independent contractors’ or ‘partners,’ not employees, which legally exempts platform companies from providing statutory benefits like PF, health insurance, paid leave, and minimum wage guarantees.
• Algorithmic Management: Algorithms manage workers, dictating tasks, tracking real-time performance, calculating earnings, and deactivating accounts based on metrics like ratings or speed, lacking transparency or human appeal.
• The "10-Minute Delivery" Pressure: The promise of ultra-fast delivery forces workers to prioritize speed over safety, resulting in traffic violations and increased accident risks.

India's gig workforce is one of the fastest-growing globally, projected to reach 23.5 million by 2029-30 (Source: NITI Aayog, 2022).

Key Challenges Faced by Gig Workers

Lack of Social Security: Workers lack a safety net, including health insurance, accident cover, pensions, or sick leave, making them highly vulnerable to economic shocks from illness or injury.

Precarious and Low Pay: Earnings are often unpredictable and fall below the minimum wage after deducting operational costs like fuel, vehicle maintenance, and internet data. 

• The Fairwork India Ratings 2023 reported that only 3 of the 12 major platforms studied (BigBasket, Flipkart, and Urban Company) ensured their workers earns at least the local minimum wage after costs.

Intense Work Pressure & Safety Risks: The pressure for speed directly compromises worker safety. Reports indicate a high incidence of fatigue, stress, and road accidents among delivery workers.

Absence of Grievance Redressal: Gig workers often lack access to a formal, effective, and impartial system to address disputes related to pay, account deactivation, or unfair ratings.

Policy Framework for Gig Workers

Code on Social Security, 2020

It formally recognizes "gig workers" and "platform workers" for the first time. Its key provisions include:

• Definition: Provides a legal definition for gig and platform workers, bringing them under a legislative framework.
• Social Security Fund: Mandates the creation of a dedicated fund to provide benefits like life and disability insurance, health and maternity benefits, and old age protection.
• Contribution Model: The fund is to be financed through contributions from aggregators (1-2% of their annual turnover), the Central Government, and State Governments.

Rajasthan Platform Based Gig Workers Act, 2023

Rajasthan is the first state in India to enact a dedicated law to protect the rights of gig workers. This Act serves as a potential model for other states.

Way Forward

Expedite Implementation of Codes: The central and state governments must work together to strictly implement the Code on Social Security, 2020.

Promote State-Level Legislation: Other states should emulate Rajasthan's model to create localized welfare and protection mechanisms for gig workers.

Regulate Algorithmic Management: Regulations must mandate algorithmic transparency, covering pay structure clarity and a fair, human-reviewed deactivation appeal process.

Recognize Worker Representation: Platforms must be encouraged to engage in social dialogue with worker unions to negotiate fair contracts and working conditions.

Consumer Awareness: Consumers can support higher-rated Fairwork platforms and be more patient with delivery times, recognizing the human element.

Conclusion

Gig economy offers flexibility but raises ethical and legal issues regarding worker rights and social security. The challenge is balancing convenience with fundamental workforce rights. An equitable future needs strong laws, transparent platform practices, and informed consumer choices.

Source: THEHINDUBUSINESSLINE