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In India, the gig economy is experiencing rapid growth, with approximately 7 million workers
currently engaged in flexible roles through digital platforms. This number is anticipated to
soar to 25 million by 2030, driven by a compound annual growth rate of nearly 12%. As of
2023-2024, electric cargo vehicles (ECVs) are emerging as a pivotal factor in this
transformation, offering numerous advantages tailored to the needs of gig workers in last-
mile delivery and transportation. Here’s why ECVs are revolutionizing the gig economy,
enhancing accessibility, affordability, and efficiency for these workers.
The landscape for electric cargo vehicles in India has seen significant changes. The cost of
electric two-wheelers, which are increasingly used for last-mile delivery, dropped to around
₹1.2 lakh in early 2024, down from ₹1.5 lakh in 2022 (Society of Indian Automobile
Manufacturers). Additionally, the government’s Faster Adoption and Manufacturing of Hybrid
and Electric Vehicles (FAME) scheme offers subsidies of up to ₹1.5 lakh, making the
transition to ECVs more affordable.
This price reduction makes electric cargo vehicles feasible for gig workers engaged in
delivery and transportation. Government incentives and financial support help reduce the
initial investment costs, making it easier for gig workers to adopt ECVs. The affordability and
reduced financial burden enhance accessibility, allowing more workers to benefit from these
advanced vehicles.
Fuel savings are critical for gig workers who often operate under tight margins. The cost of
charging an electric cargo vehicle is approximately ₹3 per kilometer, compared to ₹8 per
kilometer for diesel or petrol (Indian Oil Corporation). This substantial difference means that
a delivery driver covering 100 kilometers a day would spend around ₹300 on electricity for
an ECV versus ₹800 on fossil fuels. Over a month, these savings can amount to around
₹15,000.
These savings are crucial for gig workers in the last-mile delivery and transportation sectors.
Lower fuel costs help offset the initial investment in ECVs and improve overall financial
stability. This cost efficiency directly contributes to better earnings and more manageable
operating expenses, making ECVs an attractive choice for those in high-mileage roles.
Maintenance costs are another key advantage of ECVs. Electric cargo vehicles generally
have fewer moving parts than conventional diesel or petrol trucks, resulting in lower
maintenance expenses. According to the Automotive Research Association of India (ARAI),
ECVs incur about 30-40% less maintenance cost over their lifetime than traditional vehicles
due to the absence of complex engine components and fluids requiring regular servicing.
For gig workers, this reduction in maintenance costs translates to fewer unexpected
expenses and less downtime. With fewer repairs and lower upkeep requirements, workers
can keep their ECVs in optimal condition and avoid interruptions in their delivery schedules,
ensuring a smoother and more reliable operation.
The Indian government and state authorities have been investing heavily in EV infrastructure
to support the adoption of electric vehicles. By the end of 2024, the Ministry of Heavy
Industries aims to increase the number of public charging stations to 10,000 (Government of
India). This expanded infrastructure provides gig workers with more convenient and
accessible charging options, addressing concerns about range anxiety.
Moreover, many cities offer additional perks for ECV users, such as reduced road taxes,
exemptions from certain restrictions, and priority access to bus lanes and restricted zones.
These benefits enhance the efficiency and convenience of operating an ECV, enabling gig
workers to navigate congested urban areas more effectively and boosting their earning
potential.
Conclusion
Electric cargo vehicles are revolutionizing the gig economy in India, particularly for those
engaged in last-mile delivery and transportation. With decreasing costs, significant fuel
savings, lower maintenance expenses, and enhanced infrastructure support, ECVs offer a
practical and financially beneficial solution. As the gig economy grows, adopting electric
cargo vehicles can provide workers with a cost-effective and sustainable means of
transportation, enhancing their financial stability while contributing to a greener future.
