Is India’s gig economy treated fairly?
The rapid growth of India's gig economy has improved convenience but amplified concerns around worker welfare. Platforms must balance innovation and inclusion to build sustainable models at scale. Fairwork's annual ratings provide transparent benchmarking – both challenges and best practices come to the fore.
Urban Company topped Fairwork India’s 2022 ratings, earning accolades for fair pay, working conditions and grievance processes safeguarding over 45,000 partners. Health insurance, training subsidies and the pioneering Partner Stock Ownership Plan (PSOP) awarded in equity distinguish their approach. However, the bar must continue rising across metrics like wages and social security.
Contrast this with ride-hailing, where Ola scored zero across five principles spanning pay, contracts, management and representation. Allegations have surfaced around arbitrary suspensions, manipulated incentive structures and even lease frauds. Lack of workers' voice compounds matters – collective bargaining remains nascent despite sporadic strikes.
Between the extremes lie food delivery platforms like Swiggy and Zomato. Although scoring reasonably on pay and conditions, frequent worker disputes reveal gaps persisting in practice. Metrics also overlook crucial aspects such as training, career progression and platform dependence.
Sustaining gig work's empowering potential requires proactive shaping of outcomes, not reactive damage control. Industry leaders must acknowledge and collaborate to uplift their most vital stakeholders – millions of individuals powering essential services nationwide.
The Fairwork report suggests various business model innovations can pave the way. Blend dynamic pricing with earnings guarantees. Form worker collectives. Enable data transparency and worker portability across apps. There are no easy fixes, but collective dialogue and experimentation focused on impact lie at the core.
Such reports indicate a growing interest in ethical employment standards. Consumers today exhibit preference for brands that demonstrate progressive values around pay equity and worker welfare. As a result, companies perceived as responsible employers stand to benefit.
For instance, the ride-sharing service BluSmart has rapidly expanded market share compared to competitors like Ola. BluSmart promises formal employment contracts and working hour tracking procedures along with electric vehicles to reduce environmental impact. This alignment with emerging societal expectations around corporate sustainability may explain BluSmart's rising popularity among Indian consumers. Market incumbents now face pressure to re-evaluate their own labor and operating practices to remain competitive.
The success of companies like BluSmart signals the beginnings of a value shift. Job quality and business ethics now represent priorities for the Indian public, not mere afterthoughts. Firms that lean into this evolution early have opportunities to build consumer loyalty and public trust.
Progress cannot emerge from private sector action alone given structural labor market challenges. Policy plays a pivotal role - frameworks like codes on social security provide starting points for portable, pro-rated benefits delinked from single employers.
India's gig economy holds immense promise, but realizing equitable, enduring growth means placing people before platforms. When companies embrace this mindset, workers, consumers and ecosystems thrive in harmony. FairWork spotlights change agents while reminding laggards of unfinished responsibilities. The future remains unwritten - and that is what excites us most.
