Ola, Uber, Porter worst digital platforms for gig workers in India: Report

Ola, Uber and Porter are the worst digital platforms for gig workers in India, revealed a report.

While Ola and tech-enabled logistics company Porter scored zero on a scale of 1-10, Uber and Dunzo received only one point, according to the 'Fairwork India 2023' report, spearheaded by the Centre for IT and Public Policy (CITAPP) at International Institute of Information Technology Bangalore (IIIT-B), in association with Oxford University.

The report evaluated 12 digital platforms including Amazon Flex, BigBasket, BluSmart, Dunzo, Flipkart, Ola, Porter, Swiggy, Uber, Urban Company, Zepto and Zomato against five principles: Fair Pay, Fair Conditions, Fair Contracts, Fair Management, and Fair Representation. 

 

The Fairwork India Ratings for 2023 examines the working conditions of gig workers on digital labour platforms.  No platform scored more than six out of the maximum of 10 points, and none scored all the first points across the five principles.

BigBasket, Flipkart, and Urban Company are the only three online platforms with a minimum wage policy to ensure that their workers earn at least the hourly local minimum wage after factoring in work-related costs such as fuel, vehicle maintenance, insurance, and data, revealed the study.

In its first year of participation, ride-hailing platform aggregator BluSmart scored higher than more established platforms in its sector, with 5 points out of 10.

"There is room for cautious optimism that BluSmart's operational model might represent a step towards better conditions for drivers in the platform economy," the report mentioned.

Not a single platform made the second point of the Fair Pay principle, which requires platforms to provide sufficient evidence that workers earn at least the local living wage after work-related costs. 

Only, seven out of 12 platforms provided workers with ‘Fair Contracts’ ensuring the accessibility and comprehensibility of their contracts. 

“BigBasket, BluSmart, Urban Company, Zepto, and Zomato met the requirements for the second point under Fair Contracts by adopting a change notification clause in their contracts, reducing asymmetries in liability (such as by a provision to compensate workers for losses due to app malfunctions), adopting a Code of Conduct for their subcontractors, and making the variables of pricing transparent where dynamic pricing was used,” the report said. 

Workers safety and insurance coverage 

Gig workers face several risks like road accidents and injuries, theft, crime and violence, and adverse weather conditions. The report said that 9 platforms, including Amazon Flex, BigBasket, BluSmart, Flipkart, Swiggy, Uber, Urban Company, Zepto, and Zomato ensured that task-specific risks were mitigated by providing workers with adequate safety equipment and periodic safety training.

However, only BigBasket, Swiggy, Urban Company, Zepto and Zomato provided workers with accident insurance coverage at no additional cost, and monetary compensation for income loss in cases where they were unable to work due to medical reasons other than accidents. Only these firms ensured that workers’ standing was not negatively affected when they returned after a break with prior notice.

Workers' representation and the changing regulatory landscape  

The report comes at a time when several parts of the country have seen protests by gig workers, while on the other hand state governments are tightening regulatory frameworks. 

The government of Rajasthan, on July 24, 2023, passed the Rajasthan Platform Based Gig Workers (Registration and Welfare) Act, 2023 (“Act”). With this initiative, Rajasthan became the first state in India to pass a legislation, which regulates the engagement of gig workers and aims to provide social security and other benefits to platform-based gig workers.

"The Act applies to ‘aggregators’ (digital intermediaries connecting buyers and sellers) and ‘primary employers’ (individuals or organisations engaging platform-based gig workers). The Act also includes within its ambit (of gig workers), any person who works on a contract that results in a given rate of payment, based on the terms and conditions laid down in such contract and includes all piece-rate work.

In a year that has seen the formulation of a significant regulation based on inputs from workers called The Rajasthan Platform Based Gig workers (Registration and Welfare Act, 2023, "we hope that highlighting the experiences of workers will point to the structural changes that platforms, consumers and the state alike will need to undertake if the platform economy is to offer its workers decent work," said Professors Balaji Parthasarathy and Janaki Srinivasan, principal investigators.

Representation through a collective body or trade union is a vital dimension of fairness at work. However, the report said, “There was insufficient evidence from any of the 12 platforms for even the first point under Fair Representation in 2023. Despite multiple instances of workers' protests and strikes across the country and the many legislative changes within the platform economy this year, platforms in India have remained unwilling to systematically recognise or negotiate with workers' collectives.”

Amazon Flex, bigbasket, BluSmart, Flipkart, Swiggy,and Zomato were awarded the first point for the Fair Management principle for providing due process in decisions affecting workers, and channels for workers to appeal disciplinary actions.

There was sufficient evidence only from BluSmart and Swiggy to meet the second point for the principle. They institutionalised the conduct of regular, external audits to check for biases in their work allocation systems, in addition to adopting policies against the discrimination of platform workers.