Congress leader Jairam Ramesh listed some of the features of the Karnataka Platform-based Gig Workers (Social Security and Welfare) Bill such as establishing the gig workers’ social security and welfare fund and gig workers welfare board to advocate for gig workers. File
| Photo Credit: PTI

Citing legislations by its State Governments to ensure justice for gig workers, the Congress on July 11 said India needs a national legal and social security architecture for such workers and hoped that the forthcoming Union Budget will take a step in that direction.

Congress general secretary, in-charge communications, Jairam Ramesh said the Karnataka Platform-based Gig Workers (Social Security and Welfare) Bill, 2024, is a landmark rights-based legislation that brings formal rights and social security to platform-based gig workers in the State.

Editorial | ​Even the odd jobs: On the Karnataka gig workers bill

The Karnataka Government last month released a draft of the proposed Karnataka Platform Based Gig Workers (Social Security and Welfare) Bill, 2024, which aimed to protect their rights in the State with the creation of a board, welfare fund and grievance cell among other mechanisms.

Mr. Ramesh listed some of the features of the Bill such as establishing the gig workers’ social security and welfare fund and gig workers welfare board to advocate for gig workers.

The Bill also calls for mandatory registration of all gig workers with the government and States that aggregators can no longer terminate a worker without giving 14 days prior notice and a valid reason.

According to the Bill, aggregators must make payments to gig workers every week.

“Leader of Opposition in the Lok Sabha, Rahul Gandhi, has been a leading voice for India’s gig workers since the Bharat Jodo Yatra,” Mr. Ramesh said in his post on X.

He said the Congress Governments in Telangana and Karnataka, and the previous Congress Government in Rajasthan, have brought powerful legislation to bring gig workers justice.

Social security for gig workers was also a key guarantee given by the Indian National Congress’s Nyay Patra for the 2024 Lok Sabha elections, he pointed out.

“As much as State Governments can do, India needs a national legal and social security architecture for gig workers. Their numbers are only projected to rise, from 77 lakh in 2022 to about 2.4 crore in 2030. The ball is in the court of the Union Government. Hopefully the forthcoming Budget will take a step in this direction,” Mr. Ramesh said.

According to Karnataka’s Labour department, the objectives of the proposed Bill are “to protect the rights of platform-based gig workers, to place obligations on aggregators in relation to social security, occupational health and safety, transparency in automated monitoring and decision-making systems and to provide dispute resolution mechanisms,” among others.

Due to the demanding work hours, the study found that drivers are physically exhausted, and exposed to an increased risk of road traffic accidents. File.
| Photo Credit: NAGARA GOPAL

Almost a third of app-based cab drivers work for over 14 hours a day, while more than 83% work more than 10 hours and 60% work over 12 hours, according to a study of more than 10,000 Indian cab drivers, gig and platform workers. It noted that social disparities make the situation worse, with over 60% of the drivers from Scheduled Castes and Tribes working for over 14 hours a day, while only 16% from the unreserved category work such long hours.

Authors of the study, which will be released on Monday, recommended stronger social security for app-based workers, and called on the government to exercise oversight on the fairness of algorithms and mechanisms used by platforms to monitor such workers.

Also read | Are gig workers nobody’s employees?

The study was conducted by the People’s Association in Grassroots Action and Movements, and the Indian Federation of App-based Transport Workers, with technical support from the University of Pennsylvania and Friedrich-Ebert-Stiftung India, a German foundation.

Low pay, long hours

The study report says that over 43% of participants in the study earn less than ₹500 a day or ₹15,000 a month, after deducting all their costs. The study found that 34% of app-based delivery persons earn less than ₹10,000 a month, while 78% of them are spending over 10 hours each day at work. Noting the differences among workers from different castes, the report said that “these income disparities further exacerbate the already existing social inequalities and perpetuate cycles of poverty and distress within these communities”.

Overall, 5302 cab drivers and 5028 delivery persons across eight cities — Delhi, Hyderabad, Bengaluru, Mumbai, Lucknow, Kolkata, Jaipur, and Indore — participated in a 50-question survey; 78% of the respondents were in the age group of 21 to 40 years.

Due to the demanding work hours, the study found that drivers are physically exhausted, and exposed to an increased risk of road traffic accidents, especially due to the ‘10-minute delivery at the doorstep’ policy of certain e-commerce platforms. The report said that 86% of delivery persons found such policies “completely unacceptable”. The lack of social and job security creates additional stress and leads to potential health issues.

Expenses exceed earnings

“While 72% of the cab drivers said that they face difficulty in managing expenses, 76% of the delivery persons are struggling to make their ends meet. 68% of cab drivers’ responses even show that their overall expenses exceed their earnings, which indicate how a vast number of app-based workers could be in debt-like situations,” the report said, urging better compensation and support for these workers.

Over 80% of app-based cab drivers were not satisfied with the fares offered by the companies, while over 73% of app-based delivery persons showed dissatisfaction with their rates. “35% of the respondents reported that according to them, the companies are deducting between 31-40% of commission rate per ride, while the officially claimed figure by the companies themselves is 20%. The screenshot data evidence also points out to the deductions on each ride to be over 31%. 68% of the respondents said that these deductions are arbitrary, unexplained and unfair,” the report said.

Customer misbehaviour

It added that 41% of the drivers said they are unable to take even a single day off in a week; 48% of delivery persons too reported their inability to take a weekly off. Less than 37% of the drivers said they belonged to a union.

Another major complaint of the workers is the issue of ID deactivation and customer misbehaviour. “A glaring 83% of the drivers reported that the issue of ID blocking affects them negatively, 47% stated that this issue extremely affects them. In the case of delivery persons, this percentage is even higher at 87%. Customer behaviour affects a significant majority (72%) of drivers in a negative way, while 68% of delivery persons are reportedly affected by it negatively,” the report said.

Making deliveries on time. Illustration of a food delivery worker riding a vehicle to drop a delivery
| Photo Credit: Getty Images/iStockphoto

A survey report on food delivery partners by the National Council of Applied Economic Research validates several common beliefs, such as workers being young graduates who work extended hours for better pay and independence. However, the study also reveals new insights: a sizable portion of them are sole breadwinners in their families and a notable share experienced a drop in income compared to their previous jobs. The findings further indicate a decline in their real income over time even as the share of income that they spent on fuel has risen, resulting in a double whammy

1. A majority of them agreed that deliveries can be increased if they worked harder, while a similar share also said that this was not in their control due to traffic and restaurant delays
2. A significant share of them spent a sizeable amount buying new phones and vehicles for the job

Profile of a food delivery partner

An overview of the average food delivery worker, encompassing their background and skill sets, according to the survey

• The typical food delivery worker is a 29-year-old male
• Nearly one-fourth (23.8%) of these workers are in their first job, and of this group, 88% are students
• Food delivery workers lack social security protection. Only 61.9% of delivery workers receive rations, 12.2% possess an Ayushman Bharat card, 7.1% are registered on the e-Shram portal, and 4% are enrolled in the Atal Pension Yojana
• These workers are considered informal labour, lacking employer-provided social welfare and job security, although some may have accident insurance
• Workers on long shifts average 10.8 hours, while those on short shifts work about 5.2 hours
• A third of the workers have college degrees, and 93% have at least completed 10th standard
• 43.7% of workers are the sole wage earners, and 68.9% are non-migrants who work in their hometowns
• On average, workers stay in their food delivery roles for about 14.1 months, though a third indicate that they have no plans to leave
• In terms of tenure, 28.1% have been working in such platforms for less than a year and 25.7% for 1-2 years, making them pandemic-era hires. Meanwhile, 24.7% started before the pandemic, having worked for over two years
• Food delivery workers work 27.8% more hours than the average urban young male and earn 59.6% more. However, after accounting for fuel expenses, this income advantage narrows to 5%

Incentives

Chart 1 | A look at the reasons given by workers for joining the food delivery platforms (% respondents)

Charts appear incomplete? Click to remove AMP mode

Basis of entry

Chart 2 | How did workers enter the food delivery platform? (% respondents)

Job requirements

To work for a food delivery service, a worker is required to own a two-wheeler and know how to use it, have a smartphone, and buy a kit that includes a T-shirt and bags

Old vs new job

Chart 3 | The chart contrasts different facets of employment in food delivery platforms with the prior jobs of those who work long shifts in food delivery

Income and expenditure

Examining the change in a food delivery worker’s income levels due to this new job

Chart 4 | % of long-shift workers who said their real income (new income minus previous job’s monthly income) increased/decreased/remained same

Chart 5 | Year-wise nominal and real monthly income of long-shift food delivery workers (in ₹ thousand)

Chart 6 | Year-wise share of fuel costs for long-shift food delivery workers as a share of their income

Chart 7 | Average monthly earnings, fuel costs, and monthly spending (excluding fuel) for long-shift platform workers

Perceptions about delivery

The charts show the share of respondents who said the following:

Chart 8 | The number of deliveries can be increased if a worker tries harder

Chart 9 | The number of deliveries a worker makes is not in their control

Chart 10 | The worker can improve their rating if they are polite to their customers

Chart 11 | The worker has to spend a lot of time waiting at a restaurant for an order

Methodology

NCAER conducted a phone survey involving 924 food delivery workers from a specific platform. The survey spanned 28 cities, covering Tier 1, 2, and 3 cities across all regions of India—North, South, East, and West. It included both active and inactive or former workers, who had employment durations ranging from less than a year to over two years, working either full-time or part-time.

This report, the first output of a three-part research programme undertaken by NCAER extensively explores the socio-economic implications of workers engaged in the food delivery platform industry, shedding light on their employment patterns, incomes, and work environments. Parts two and three of the research programme reports, to be released subsequently, will evaluate the socio-economic impact of food delivery platforms on restaurants, and their systemic impact on India’s economy and labour markets.

Also read: Gig Workers Bill: reading between the lines

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