The Gig Economy in India: A Dream Job or a trap?

Long hours spent working, battling through traffic, enduring harsh weather, and still struggling to make ends meet. This is the everyday reality for millions of gig workers in India- those who deliver food, drive cabs, or provide freelance services. The Gig economy, driven by platforms like Zomato, Swiggy, Ola, Uber, and Uber Company, has reshaped the employment landscape in India. For many, it promises flexibility and quick earnings. However, beneath this appealing surface lie cold hard facts: low wages, job insecurity, and a lack of fundamental rights. The burning issue is- Does the gig economy truly empower its workers, or is it merely exploiting them?

How the Gig Economy is Growing in India?

The gig economy is on the rise. Currently, over 7.7 million Indians are engaged in gig-based jobs, and projections suggest this could rise to 23.5 million by 2030, according to NITI Aayog. Many individuals, particularly to secure stable environment, turn to platforms like Uber and Swiggy for their income. The allure? Flexible work hours, quick cash, and the independence of being your own boss.

In a country with increasing unemployment, this appears to be an ideal solution. But is it truly?

Why the Gig economy feels like freedom if you ask any gig worker why they chose this path, you might hear:

“I can work whenever I want.” – Many gig workers value the ability to set their own hours.

“No degree? No problem.” – These jobs do not demand advanced education- just a bike, a car, or specific skill.

“I can earn based on how much I work.” – Unlike traditional salaries, more deliveries or rides translate to more income.

“I don’t have a boss hovering over me.” – Gig workers essentially operates as their own bosses.

At first glance, it seems like the ideal job- especially for students, part time workers, and those seeking additional income. However, a closer look reveals the underlying issues.

The Harsh Reality: When Freedom Becomes Exploitation

Despite its promises, the gig economy often ensnares workers in a cycle of financial instability and insecurity. Here’s how:

Earnings vs. Expenses:

Gig workers frequently earn as little as ₹20-30 per delivery or ride, while companies take a significant portion.

Fuel costs, vehicle maintenance, and platform commissions significantly reduce their earnings.

Many drivers and delivery workers report that they sometimes take home less than ₹200 per day after expenses.

No Job Security or Benefits:

There are no fixed salaries, paid leaves, health insurance, or pension plans.

If a worker falls ill, they don’t receive any pay.

Numerous gig workers find it challenging to save for emergencies.

Algorithmic Control & Unfair Policies:

Workers have no say in their wages—the app dictates them.

They can be deactivated or banned at any moment without any explanation.

Ratings influence job opportunities—one negative review can impact their earnings.

Recent Incidents Highlighting Gig Worker Struggles:

Zomato CEO Faces Reality as a Delivery Boy

In October 2024, Zomato’s CEO Deepinder Goyal dressed as a delivery executive for a day.

When he attempted to enter Ambience Mall, Gurugram, and security denied him access through the main entrance, instructing him to use the back entrance.

He later tweeted about the disrespect gig workers endure daily, igniting an online discussion.

The mall subsequently established special pickup zones for delivery workers, but the question lingers—why did it take a CEO’s experience for this issue to gain attention?

Ola & Uber Drivers Earning Peanuts

Many drivers claim they receive only 30-40% of the total fare, while Ola and Uber retain the rest.

Rising fuel prices and commission cuts leave them struggling to make ends meet.

Some drivers have completely stopped using ride-hailing apps, stating it's no longer financially viable.

What Needs to Change?

The gig economy can be beneficial for both workers and platforms if we implement some key changes:

[if !supportLists]· [endif]Improved Pay & Fair Commission Rates – Gig workers should earn a larger portion of their income, ensuring they can sustain themselves financially.

[if !supportLists]· [endif]Access to Social Security & Benefits – Platforms ought to provide health insurance, accident coverage, and retirement plans for gig workers.

[if !supportLists]· [endif]Regulations to Safeguard Workers – The government needs to establish minimum wage laws for gig workers to prevent exploitation by companies.

[if !supportLists]· [endif]Respect & Acknowledgment – Gig workers play a vital role in urban life and deserve respect rather than discrimination.

Can We Create a Fair Gig Economy?

The gig economy is a permanent fixture in our work landscape, providing jobs for millions. However, if we don’t address the existing loopholes, it will continue to be an exploitative system masquerading as an opportunity.