Perils and promises of gig work in India

Corporations and policy planners need to recognise and remedy the perils of the gig economy

Earlier this week, NITI Aayog released the 'India's Booming Gig and Platform Economy' - a first-of-its-kind report by the government about the sector, its potential for employment generation and related recommendations to grow the industry. The report estimates that the gig economy will expand by 2029-2030 to include 23.5 million workers, with a focus on high-skilled and low-skilled labour in the years to come. Crucially, the report incorporates perspectives from gig workers to recognise their issues such as up-skilling, financial assistance, and social and welfare support.

The report comes on the heels of the Draft Code on Social Security, 2020 - a proposed amendment to the country's existing labour laws to extend statutory benefits such as healthcare, maternity leave and income security to all workers, including those employed in informal gigs and platform-mediated work. To this end, the report is alive to the concerns of gig workers and recognises the need for overarching frameworks for social protection that is necessary to protect their interests. Remedying these exploitative characteristics of the platform gig economy is the first step towards improving the working conditions of persons employed in the sector, with multi-stakeholder, participatory, self-governing institutions furnishing a possible mechanism for governance of platform work.

Also Read | Gig workers deserve employee benefits

Paradigmatic shifts in the platform economy

The growth of the gig platform economy represents a noteworthy transition in employment arrangements in favour of flexible jobs, with various tech-mediated platforms employing over 30 million people in the Global South alone. Gig work represents a promising avenue for job creation in emerging economies facing under- and unemployment. Platform-mediated gig work has transformed several domains, from mobility to food delivery and utility services in India, with scholars like Aditi Surie arguing that some types of low-medium skill platform work constitute a public infrastructure.

However, a dark underbelly exists to this growth of the platform economy - such as precarious working conditions and physical and mental safety hazards. Ongoing research at Aapti Institute is uncovering the risks to workers' human rights resulting from algorithmic management practices and gamified performance evaluation.

The above concerns are magnified for female workers, with studies reporting an 8-10 per cent wage gap between men and women. Barriers to entry for women into the platform economy remain steep in a country where only 21 per cent of women have access to mobile internet. Lastly, concerns around sexual harassment exist, suggesting a transposition of socio-cultural restrictions unto digital platforms.

Also Read | Gig economy to grow nearly three-fold by 2030: Niti Aayog

It is imperative that corporations, as well as the public policy itself, recognise and remedy the perils of the gig economy. In doing so, digital platforms must transition towards a positive paradigm for app-mediated work in which workers' lived experiences form the lynchpin for platform design and governance.

The recently-established Uber Driver Advisory Council, an autonomous third-party mediated mechanism for driver-partner engagement for Uber India, provides a useful rubric to reimagine the relationship between platforms and their workers, unlocking benefits across the business, societal and policy levels. At the societal level, the DAC marks a significant milestone in India's mobility sector, broadening the scope for truly participatory decision-making in the platform economy.

Platforms of tomorrow: participatory self-governance as a lever for worker well-being

Mechanisms of participatory decision-making provide a safe space for workers to connect with peers and channelise their concerns within a safe space. Indeed, independence is a significant attribute of such mechanisms. This may be attained through mediation by reputed third-party institutions.

Also Read | Building a gig economy for rural India

Participatory mechanisms can benefit several stakeholders - for policy, the participatory process generates a body of evidence on what works. Given the NITI report calls for the development of social welfare and protection mechanisms, participatory fora can enable a better understanding of lived experiences and, therefore, the development of relevant welfare programmes. For business, these mechanisms can help garner feedback, promote satisfaction and reduce risks of volatile action.

Indeed, the ecosystem can stand to gain from listening to gig workers, enabling responsive strategy development that is informed by the body of evidence generated through participatory mechanisms.

Designing the platforms of tomorrow requires paying attention to workers' experiences and privileging their security. Instituting mechanisms for participatory decision-making can help co-evolve solutions to long-standing problems within the platform gig economy.

(The authors are associated with Aapti Institute, a Bengaluru-based tech policy think tank)

Disclaimer: The views expressed above are the authors' own. They do not necessarily reflect the views of DH.