Within the last few years, gig work in India has become synonymous with delivery drivers from quick commerce, food delivery, and ride-hailing services. When you think of a gig worker, you more often than not think of people on bikes with a delivery box on the backseat and a rush to reach their destination.
The rapid rise in the number of this type of gig workers in India also means that many accountabilities and standards that would have been placed gradually are now missing, leading to issues that led to the recent gig worker strikes.
Despite this imperfect system being in place, it is also evident that both gig workers and online platforms cannot optimally function without each other or the flexibility that their current working model provides. Let’s deep dive into some of the factors to discuss the same.
The Time Factor
A couple of years ago, Zomato had a timed delivery guarantee for certain locations and restaurants. If the customer does not receive their order within that timeframe, their order will be refunded. This scheme was quickly scrapped due to multiple factors, one of which was the unpredictability of roads in Indian cities and other dynamic factors.
Presently, despite promising quick delivery times, rarely any quick commerce of food delivery platforms guarantee refunds if the deadlines are not met. The delivery times proposed to customers are also calculated not based on distance but also on traffic conditions, weather, and availability.
So, if there is no guarantee to customers, why are timed deliveries a major point of contention between gig workers and platform employers? The answer lies in the fact that delivery drivers are paid not based on hours but on deliveries.
The Gig Worker Side
As such, for our delivery drivers, every second becomes precious. Every second their “waste” on the road or waiting for customers or vendors means they are literally losing money. This becomes especially true when platforms often mandate that delivery drivers need to complete a certain number of tasks in a day to continue the partnership.
The proposed solution for this, by gig workers, is to remove the time mandate, but to also shift to an hourly payment system instead. Admittedly, the hourly pay system will provide delivery drivers with a safety net and allow them to slow down.
The Platform Side
Conversely, though, it also means that many delivery drivers might not have an incentive to complete as many deliveries as quickly as possible, which might hurt the company itself. One cannot forget that it’s not just the delivery drivers who are getting paid on a delivery basis, but the company as well.
For platform employers, paying drivers on an hourly system can lead to a loss in high delivery numbers, especially given the competitive nature of the industry. Where these platforms pride themselves on having short and quick delivery times, banning them can lead to them losing the very USP that helped them create their brand.
Possible Solution:
A middle ground may be found in indeed agreeing to an hourly pay system, but providing extra incentives to drivers who complete a certain number of deliveries in a certain amount of time. This will mean an overhaul in how the platform workers pay their gig workers.
While such an undertaking will lead to many changes, it also means that companies might finally be able to keep up with the rapidly growing number of gig workers and the demand from customers.
Ultimately, it is important for companies to set realistic expectations of delivery times for their customers as well as drivers. On the other hand, gig workers also cannot expect set rates without meeting certain work targets.
The Pay Factor
One of the biggest demands of the delivery drivers is asking for a base rate for delivery distances. The demand of a minimum of ₹20 per kilometre, the drivers believe, takes into account the fact that they also have to pay for the maintenance of their vehicles and fuel.
Given the high rate of petrol in Indian cities, the demand does make much sense, though it also raises the question of who exactly will ultimately pay the price difference.
The Gig Worker Side
Oftentimes, certain deliveries lead drivers to travel long distances of multiple kilometres. As such, being paid by delivery, without accounting for distance, can mean drivers have spent more on fuel than they are paid.
Longer deliveries also mean they complete fewer deliveries. As such, the demand-based pay system allows drivers to be more open to accepting long-distance deliveries.
The Platform Side
Agreeing to a per-kilometre rate, however, can also be a double-edged sword in the event of unexpected delays, such as traffic jams. In other words, a pay structure that considers only distance can be unfair to both parties.
Moreover, delivery rates on most quick commerce platforms become nil when the cart reaches a certain value or if the customer has a premium subscription. In such cases, the platform itself pays the delivery costs to the drivers.
So, for many platforms, agreeing to a per-kilometre rate will lead to a sharp decrease in revenue or to having to increase prices for customers, options they might be unwilling to adopt if it negatively impacts business and profits.
Possible Solution:
In a dynamic country like India, a pay structure for work as unpredictable as delivery must benefit customers, employers, and employees.
Many companies, like Zomato, increase delivery rates beyond a certain threshold distance, allowing them to pay delivery drivers more for longer trips. Perhaps a bracketed system like this, with more levels, can help in creating a fairer pay structure for gig workers.
The Earnings and Benefits Factor
A minimum monthly payment of ₹24,000, up to ₹40,000, is one of the biggest demands of gig workers, followed closely by a request for social security and benefits. Such demands, though completely reasonable from an employee’s side, also highlight just why gig work in India has become such a hot topic of discussion.
The Gig Worker Side
Currently, online platform employers do not have an established infrastructure that can reasonably account for the needs and demands of every gig worker, especially given the massive number of employees working in such settings.
Given that the majority of the work delivery drivers do is on roads, having insurance and health benefits provides them with a sense of relief in case anything unfortunate happens. In fact, frequent road accidents in India are among the biggest reasons for the demand for social security.
Moreover, many gig workers work 9-10 hours a day as delivery drivers, putting in hours equivalent to full-time workers. As such, they remain adamant that they should have fixed salaries that reflect their commitment to their work.
The Platform Side
The dilemma, many will tell you, lies in the fact that gig workers today hope for benefits that many full-time workers enjoy. However, this can be a double-edged sword. Any full-time employee will tell you that, in a formalised work sector, availing such benefits and a fixed salary also entails extensive documentation and accountability.
One of the biggest reasons behind the rapid rise in the number of platform workers in India is the ease with which one can apply to work for such platforms. However, to avail of proper benefits will require additional compliance steps, which can reduce ease and, hence, the chance of employment.
Possible Solution:
The new Code on Social Security (COSS), 2020, mandates that platform workers must contribute 1–2% of their annual turnover, capped at 5% of the amount paid/payable to gig and platform workers, to enable social security coverage.
While the amount can be debated and discussed further, it does seem like a reasonable step in providing reasonable benefits. A collective fund like this means gig workers can access benefits when needed, while reducing compliance requirements.
The proposed system is not without flaws, as it raises the question of whether gig workers can indeed avail themselves of this fund. Furthermore, a lack of information about such factors can prevent employees from receiving what they are owed.
Hence, in addition to implementing such provisions, an informative orientation session might need to be organised to ensure that every gig worker starts their journey knowing what they can gain.
As for salaries, perhaps a discussion can be had about setting a minimum salary for employees who work a certain number of hours or tasks on a single platform within a month. Such a commitment deserves a reward, and systems like this can provide an incentive for delivery drivers while giving platforms assured service providers.
In the End…
The gig-worker strikes highlight that even the most basic issues within the Indian gig economy need to be addressed while keeping in mind the interests of both parties involved. The demands of gig workers are reasonable and fair, but they also need to account for the realities of a business.
On the other hand, platforms like Zomato and Swiggy need to acknowledge that many gig workers rely on their earnings as a primary source of income. Providing reasonable benefits, working conditions, and upskilling opportunities to such individuals can significantly boost their functions while also increasing retention in an industry that remains highly competitive.
