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The new work norm is here, and it is one fueled by the unequivocal opportunities provided by
gigs.
The gig economy has revolutionized traditional employment, offering diverse opportunities and
reshaping labor dynamics worldwide. With the rise of new digital platforms, the new generation
has found ways to work flexibly and independently.
In this article, we will explore the shifting priorities of the new generation of workers, the
impact of rising gig platforms, and the role of policy changes in shaping the future of gig
work.
The high-cost disparity between traditional fuel-operated two-wheelers and electric vehicles
(EVs) presents a significant hurdle for gig workers. A second-hand petrol two-wheeler costs Rs.
15,000 and Rs. 20,000, whereas an average EV two-wheeler ranges from Rs. 70,000 to Rs.
90,000. This substantial price difference makes transitioning to EVs financially daunting for
many gig workers, potentially jeopardizing their livelihoods.
Additionally, today's generation of two-wheeler EVs offers a limited range of 60-80km per
charge, significantly less than the 150-200km typically covered daily by gig workers. This
limitation necessitates frequent charging or battery swapping, which reduces efficiency and
productivity.
The need for adequate charging infrastructure further complicates the transition, making it less
feasible in the short term.
The World Bank’s “Working Without Borders: The Promise and Peril of Online Gig Work“
report highlights that online gig work now constitutes up to 12% of the global labor force,
encompassing over 400 million workers. This shift has benefited youth, women, and
vulnerable populations, providing opportunities to acquire new skills and earn
supplemental income, especially during economic shocks.
A significant majority of online gig workers are under 30 years old. They are drawn to gig work
for its income potential, skill acquisition, and flexibility, which allows them to balance it with
education or other employment. Moreover, online gig work has played a crucial role in bridging
the gender gap, with women participating more actively in the online gig economy than in the
general labor market.
Many online gig platforms, such as Upwork, Fiverr, Uber, and Uber Eats, operate
predominantly at regional or local levels. These platforms are instrumental in local labor markets
by lowering entry barriers and fostering local private-sector growth.
This is particularly significant in non-English-speaking regions and smaller towns and
villages, where six out of ten online gig workers reside. It presents a valuable opportunity for
policymakers to address regional employment disparities.
These platforms offer flexible, accessible job opportunities to a diverse workforce, contributing
to economic inclusion and development in various regions.
The gig economy has been a significant driver of employment, particularly in urban areas like
Delhi.
Recent policy changes, such as the Delhi Government’s Draft Delhi Motor Vehicle
Aggregator and Delivery Service Provider Scheme, 2023, aim to address environmental
concerns by pushing for the electrification of aggregators and delivery services.
This policy is part of a broader mission to curb vehicular pollution, enhance air quality, and contribute to India’s zero-emission goals. The scheme mandates a phased transition to electric vehicles (EVs) for all transport modes operated by aggregators, delivery services, and e-commerce platforms, targeting full electrification by April 2030.
This ambitious plan has several implications for the gig economy, particularly for the 2.2 lakh gig workers in Delhi who rely on their two-wheelers for their livelihood.
The Karnataka government has taken a significant step towards safeguarding the interests of gig workers with the proposed Karnataka Platform-based Gig Workers’ (Social Security and Welfare) Bill, 2024.
This initiative addresses gig workers’ social security, occupational health, and safety needs, ensuring transparency in automated monitoring systems and providing robust dispute resolution mechanisms.
The bill mandates that aggregators like Swiggy, Zomato, and Dunzo register all gig workers with a unique ID and maintain their identification across platforms.
The bill also outlines that gig workers must be informed of payment deductions, and aggregators must provide valid reasons and a 14-day notice before terminating contracts. Additionally, the legislation proposes the establishment of the Karnataka Gig Workers’ Social Security and Welfare Fund, financed by welfare fees levied on aggregators, contributions from gig workers, and grants from state and central governments.
This fund aims to create a safety net, ensuring that gig workers receive necessary social security benefits and are protected against unfair labor practices.
By implementing these measures, Karnataka aims to create a more equitable and just system for gig workers, recognizing their crucial role in the modern economy.
The gig economy’s growth has opened new avenues for employment, skill development, and economic inclusion. Platforms like Upwork, Uber, and Fiverr have empowered millions of workers, offering flexible opportunities that transcend traditional labor market barriers.
As we navigate this evolving landscape, policies and initiatives are crucial in ensuring a fair and supportive environment for gig workers.
Lord Fincap Limited is committed to empowering gig workers by providing financial solutions and fostering a profitable economy. Through our Rockett App, we aim to support the dynamic and growing gig economy, creating opportunities for success and prosperity.
Visit www.lordfincaplimited.com today to learn how we contribute to building a new, mutually profitable realm of gig work.
