Why in News?
- On 31 December, over 1 lakh gig and platform workers went on strike across India.
- Memorandum submitted to Union Labour Minister Mansukh Mandaviya demanding:
- Immediate withdrawal of 10–20 minute delivery models.
- Priority to worker safety, income stability, and accountability of platforms.
- Renewed debate on:
- Adequacy of four Labour Codes in protecting gig workers.
- Regulation of algorithm-driven work systems.
- Contextual relevance due to:
- Rapid expansion of quick commerce.
- Projections by NITI Aayog that 2.35 crore workers will be part of the gig economy by 2029–30.
Relevance
GS II (Governance & Social Justice)
- Labour reforms and adequacy of Labour Codes.
- Social security coverage of gig and platform workers.
- Role of State in regulating new forms of work.
- Worker safety, dignity of labour, and grievance redressal mechanisms.
GS III (Economy, Technology & Employment)
- Gig economy and platform capitalism.
- Impact of AI and algorithms on labour markets.
- Employment generation vs job precarity.
- Urban logistics, quick commerce, and informalisation of work.
What is the 10–20 Minute Delivery Model?
- Ultra-fast delivery promise driven by competitive business strategy, not essential consumer demand.
- Initiated by private platforms; replicated to avoid market loss.
- Relies on:
- Dense urban logistics.
- Algorithmic task allocation.
- High-pressure human labour rather than pure technological efficiency.
Key Concerns with the 10–20 Minute Delivery Model
1. Worker Safety & Human Cost
- Time compression leads to:
- Rash driving, traffic violations, accident risks.
- Physical exhaustion and mental stress.
- Speed is extracted from workers, not created by technology.
2. Algorithmic Control & Precarity
- Work allocation, incentives, ratings, and deactivations controlled by opaque algorithms.
- Risks:
- Sudden ID blocking without explanation.
- Income volatility and psychological stress.
- No statutory right to explanation, appeal, or grievance redressal.
3. Unequal Risk Allocation
- Tech infrastructure and marketing costs treated as fixed.
- Labour treated as the only adjustable variable.
- Workers effectively subsidise platform growth through risk-bearing.
Economic Context: Why Platforms Defend the Model ?
- Quick commerce growth trajectory:
- ~₹50,000 crore market (2025).
- Expected to reach ₹1–1.5 lakh crore in next 2 years.
- Industry CAGR ~28%.
- Online grocery market projected growth: 40–50%.
- Generates rapid, low-entry-barrier employment in an economy with:
- ~20 million new workforce entrants annually.
- Only ~2 million formal jobs created per year.
Are the Labour Codes Adequate for Gig Workers?
Structural Limitations
- Gig workers explicitly excluded from employee status.
- No entitlement to:
- Minimum wages.
- Regulated working hours.
- Paid leave, overtime, or collective bargaining.
Social Security Provisions: Weak & Non-Mandatory
- Social Security Code mentions:
- Accident insurance, maternity benefits, welfare schemes.
- Issues:
- Non-binding nature.
- No guaranteed funding ratios.
- Registration on e-SHRAM offers identification, not assured benefits.
Algorithmic Blind Spot
- No regulation of:
- Automated penalties.
- Task allocation logic.
- Deactivation decisions.
- Absence of transparency or accountability mechanisms.
Debate: Protection vs Platform Viability
Platform-Side Argument
- Over-regulation may:
- Reduce flexibility.
- Increase costs.
- Shrink gig opportunities.
- High attrition suggests workers value flexibility.
- Fear of “killing the golden goose” in a fast-growing employment segment.
Worker-Centric Argument
- Evidence shows ~80% of gig workers are full-time.
- For millions, gig work is primary livelihood, not supplemental income.
- Core demands are basic, not radical:
- Predictable minimum earnings.
- Safety cover.
- Protection from arbitrary deactivation.
- Data and algorithmic transparency.
Impact of AI on Gig Work: Future Risks
- AI likely to:
- Intensify surveillance and control.
- Enable faster, cheaper worker replacement.
- Reduce human discretion and dialogue.
- Workers risk becoming:
- More disposable.
- One algorithm update away from income loss.
Way Forward: Regulatory Balance
- Avoid binary of “consumer convenience vs worker welfare”.
- Key policy directions:
- Minimum floor income and insurance mandates.
- Algorithmic transparency and explainability norms.
- Independent grievance redressal mechanisms.
- Shared responsibility where control implies obligation.
- Parallel focus on:
- Expanding labour-intensive manufacturing to absorb workforce surplus.
