Issues of Gig Economy

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Have you ever wondered how things have changed when it comes to kirana shopping? I still remember when I was young, I used to go shopping along with my dad. He used to make a note of all the things before going shopping. The same goes for buying other necessary goods, fruits, vegetables, etc. But e-commerce has completely changed the way people shop. Within 10 minutes, the entire shopping list comes to your doorstep. Technology has made things easier and more convenient.

Customers focus on user experience—the faster the delivery, the better for the customer. But have you ever thought about how the process works, and how the gig economy is being exploited by many quick commerce platforms? According to reports, during the festive season, the collective traveling distance of all gig workers in one month is equal to eight times the distance of going to the moon from Earth and back.

First, understand what the gig economy is.

Gig economy is a system where people work short-term or part-time instead of full-time employment. In simple words, pay is based on the number of tasks you complete.

Major Issues of Gig Economy

1. Lack of Stable Income
   On average, there are around 20 million gig workers in India, and on average they earn ₹15,000–₹20,000 per month. Their earnings depend on how many tasks or rides they complete. However, that will also vary due to competition, customer ratings, etc. This makes it difficult for them to save money or plan for the future.
2. Lack of Social Security
   Most gig workers are not covered by social protection schemes such as provident funds, health insurance, or pensions. Nearly 90% depend only on gig work for income. Although initiatives like the Code on Social Security (2020) and e-Shram portal aim to include them, very few actually receive benefits. As a result, they remain unprotected during sickness, unemployment, or old age.
3. Algorithmic Exploitation
   Gig workers are managed by apps and algorithms that decide how much they earn, when they get work, and how they are rated. These systems are not transparent, and workers often don’t know why their pay changes or why they get fewer orders. Around 60% of gig workers in India feel that platform algorithms are unfair, which reduces their control and forces them to work longer hours for less income.
4. Lack of Job Security and Workers’ Rights
   Gig workers are usually treated as “independent contractors” instead of employees. This means they can be removed from the platform at any time without notice or compensation. Nearly 80% of Indian gig workers fear sudden deactivation by the apps they depend on. They also have limited rights to form unions or demand fair working conditions, which keeps their bargaining power weak.
5. Occupational Stress and Poor Work-Life Balance
   Gig workers face high stress due to long working hours and pressure to meet targets. Many spend 10–12 hours a day online to earn a basic income. Over 70% of Indian gig workers report fatigue, anxiety, and lack of family time. The irregular schedules and uncertainty about daily earnings affect their physical and mental health, leading to poor work-life balance.

Government is also taking major initiatives for gig economy reform, and the major one was the Code on Social Security 2020, through which the gig economy got recognition. A social security fund was created, and platforms like Zepto, Blinkit, and Uber were made to contribute to this fund.

Insurance through PMJAY Yojana allows gig workers to get health insurance up to ₹5 lakh per family per year through this initiative. There are also many other state-wise schemes for the welfare of the gig community.

Overall, the central and state governments are working really hard to provide proper recognition for the gig economy. Still, gig workers are facing many problems due to algorithm non-transparency, exploitation during the festive season, and lack of legal rights to ask for compensation, which still needs to be addressed.

what is orange economy ? https://dailyvichara.com/what-is-orange-economy-you-need-to-know-about/