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India's gig economy in a limbo as online food deliveries slow down
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IANS | 18 Mar, 2023
With a spurt in online food and grocery delivery, especially in the
pandemic years, India saw a meteoric rise in the gig economy, giving
millions of people job opportunities.
However,
delivering hot and piping food at customers' doorsteps has become a
nightmare for many of them as the food delivery business turns out to be
a losing game while more and more delivery partners report unfair work
conditions, pay disparity, and harassment.
India is likely to see
its gig workforce add 9-11 million jobs by 2025, which has been one of
the most pivotal economic shifts in a long time.
In terms of job
roles, door delivery is the most prevalent gig role employers are hiring
for currently -- 22 per cent for food and 26 per cent for other
deliveries, according to a recent study by leading job portal Indeed.
According
to reports, a typical delivery boy's salary is Rs 15,000 per month.
Delivery Boy salaries at Zomato and Swiggy can range from Rs 4,804-Rs
30,555 per month depending on which area they are working in.
Gig
workers are freelancers or contractors who work independently,
typically on a short-term basis for multiple clients. Their work may be
project-based, hourly, or part-time.
However, when it comes to
fair work for gig workers among the digital platform economy in India,
Zomato, Swiggy, and quick-grocery delivery providers Dunzo and Zepto are
among the worst performers across parameters related to the working
conditions of gig workers, according to the latest 'Fairwork India
Ratings 2022 Report'.
According to professor Balaji
Parthasarathy, one of the principal investigators of the team, these
findings are alarming for all stakeholders -- government, consumers and
platform owners -- and they should come together to help gig workers get
the best working conditions.
"We would like the government and
other stakeholders like consumers and digital labour platform owners to
take note of these findings and ensure a better work environment for
millions of gig workers in 2023," Parthasarathy said.
The
Fairwork India team was spearheaded by the Centre for IT and Public
Policy (CITAPP), International Institute of Information Technology
Bangalore (IIIT-B), in association with Oxford University in the UK.
Even
with workers and worker groups repeatedly emphasising the importance of
a stable income for platform workers, platforms have been reluctant to
publicly commit to, and operationalise, a minimum wage policy.
"Secondly,
while workers have engaged in various forms of collective action to
voice their concerns in the platform economy, platforms have been
uncompromisingly unwilling to recognise or negotiate with any collective
body representing workers," the findings showed.
According to
the report, the promise of flexibility of the digital platform economy
raises as many questions about livelihoods as it offers opportunities.
"We
hope the report provides the basis for an interpretation of flexibility
that allows for not merely the adaptability that platforms seek, but
also the income and social security that workers lack," said
Parthasarathy and Janaki Srinivasan, the Principal Investigators of the
team.
The biggest barriers for gig workers are lack of access to
job information (62 per cent), not knowing English (32 per cent), and
not knowing the local language (10 per cent) for workers who have
shifted outside of their home town for work.
Challenges in
language also result in other difficulties with 14 per cent of the gig
workforce respondents reporting a lack of awareness of their jobs'
skills and abilities, according to Indeed study.
Nearly three out
of five gig workers (59 per cent) find their jobs uncomfortable (46 per
cent), if not hard and risky (13 per cent).
The government has also cracked a whip on online food aggregators in the recent past.
Last
year, the Competition Commission of India (CCI) ordered a thorough
investigation into the conduct of online food delivery platforms Zomato
and Swiggy over alleged involvement in delayed payment cycle and
exorbitant commissions.
Following a complaint from the National
Restaurant Association of India (NRAI), the CCI said that it is of the
view that there exists a prima facie case with respect to some of the
conduct of Zomato and Swiggy, "which requires an investigation by the
Director General (DG), to determine whether the conduct of platforms
have resulted in contravention of the provisions".
The NRAI had
alleged that the commissions that are charged from restaurants are
"unviable" and "are to the tune of 20 per cent to 30 per cent, which are
extremely exorbitant".
The Department of Consumer Affairs also
asked online food business operators to improve their consumer grievance
redressal mechanism amid rising complaints from customers.
The
Delhi High Court last month postponed the hearing on petitions to April
12, filed by restaurant associations contesting the rules that forbid
hotels and restaurants from automatically adding a service charge to
meal bills.
The Central Consumer Protection Authority (CCPA),
under the Department of Consumer Affairs, released the rules last year,
and the high court stayed them.
The CCPA has sought dismissal of
pleas and said in its affidavit that the petitioners have totally failed
to appreciate the rights of the consumers by adopting an unfair method,
which is unlawful as no service is separately provided to consumers.
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