January 11, 2026
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Gig Economy - A Challenge to Trade Union Movement

S Veeraiah

A SURVEY by the CITU’s Telangana state unit has revealed the problems and precariousness of gig workers who have been growing rapidly in numbers. Gig workers, including those who work for platforms such as Uber, Ola, Zomato, Blinkit and Porter, do not have minimum security and are subjected to severe exploitation. In addition to those who depend completely on ‘gig’ work, the number of those who work part time on these platforms is also increasing. Young women are also entering this field. There are 8-10 lakh gig workers in Telangana. The nature of their work is generally very unstable and uncertain. They can fall into a situation of helplessness any time. No labour laws apply to them. Labour codes have not solved their problems either. There is no legal supervision over the owners of the platforms. They have already announced that they are providing services as mediators between workers and consumers and that they have no connection with these workers. Moreover, they say that they are providing social services. They have no responsibilities but getting income. They are controlling workers online. There is no transparency. There is one-sided control from the management but there is no opportunity for workers to contact the management or complain. They are not recognised as workers. There is no job security. No social security like holidays, medical care, provident fund, pension.

The gig economy is being promoted as a great step forward by giving honorific nicknames. It is said that it provides new opportunities to the youth. The owners of these platforms call these drivers and partners, not workers. But they are actually slaves. The rulers and capitalist economists are trying to call them independent contractors. But it is clear that they are not even independent workers. This work is being said to be convenient for the workers so that they can use it at any time. They say that there is autonomy without anyone’s control or domination over the workers. The propaganda is being made that they have power and control over their work. They say that payments are made immediately, and that they can earn a lot by working long hours. There are no obstacles to joining the work. They say that a cell phone, a vehicle and a minimum level of education are enough. These arguments are to divert people’s attention from unemployment. Workers are under severe financial and psychological pressure due to the failures of the capitalist system.

There are two reasons for the rapid expansion of gig workers. The services provided by gig workers are useful to the people. They are cheap and accessible. Therefore, consumers are attracted to their services. It is convenient for consumers! But it has become a curse for ‘gig’ workers. Taking advantage of the growing demand from consumers, the owners of these platforms are squeezing the labour of the youth. 

Some platforms are deploying middle men in the name of vendors between themselves and drivers. All the nearby area bookings go to drivers associated with the vendors. Drivers are being pushed towards vendors. Even though customers pay cash to drivers, they have to pay the owners online. Bookings stop if the amount to be deposited exceeds Rs 2,000. Normally, rates and driver income have to increase. But it has come down by half compared to last year. The rate for 100 km was Rs 15,000, but it has been reduced by Rs 1,000 in the name of partial load. The delivery charge was initially Rs 40 but now reduced to Rs 15. If one completes 24 rides in a day, he or she used to get Rs 450, but now it has come down to Rs 150-200. Those who complete 100 rides in a week used to get Rs 3,500 as an incentive. Now it has come down to Rs 1,500. Instead of paying Rs 60 for night delivery earlier, they are now paying only Rs 15-25. Restaurant owners ask drivers to wait. They give priority to regular business. But the delivery time is informed to the customer through the app. Finally, complaints are being made against the driver for not delivering on time. They are being insulted. Fraud calls, online extortion and police harassment are increasing.

There is no limit to harassment by platform owners. Drivers are suspended or dismissed from the platform on the pretext of not accepting bookings. Even if more bookings are cancelled, the identity card is blocked. Some owners appoint local managers to monitor the drivers. During such harassment, managers have to be bribed. Once a driver is suspended, they are asked to get a letter from the police to connect with the platform again. Goods transport bookings are given to passenger autos. If they do not agree, they are suspended. If they agree, the police issue challans. Even if the vehicle is at the loading and unloading point, if the driver goes to have tea or to show papers in the office, the cell phone remains in his pocket and GPS shows that the driver has moved from the loading spot. All IT companies prefer contracts with the vendor. Drivers are left with no chance of having an individual contract. 

Drivers are made to believe that there would be an attractive income. Later, these platforms gradually reduce the rates to attract customers. But the management has increased the commission from 5 per cent to 19 per cent to 30 per cent. Drivers are losing money. After the driver travels a long distance, if the customer cancels at the last minute, the management is also eating the extra charge imposed on the customer. The drivers bear the cost of petrol, diesel and time is lost. Drivers have to put a company advertisement sticker on their vehicle. The management pays only Rs 1,000 for it. But, it is the responsibility of the drivers to maintain that sticker neatly. Even if a small scratch is found, a new sticker has to be put at a cost of Rs 5,000- 7,000. There is no additional benefit for seniors. Those who have deposited Rs 750 in advance per day are being given priority. Advances are being paid to two or three platforms by the same driver. Bookings are being made from one app. Owners are enjoying what drivers paid for other apps. The night booking rate is not being doubled. Moreover, they are being paid less than during the day. 

They have to work for IT companies from 12 to 14 hours. The vehicle should be maintained properly as per the norms prescribed by the respective IT companies. Drivers should submit a health certificate. All these expenses should be borne by the drivers. The app owners are increasing targets for the drivers. The workload on the drivers and the income of the owners are increasing. Those who have deposited money in advance in the name of recharge are promised a zero commission, but it is not implemented. They increase the rate for customers during rains. However the driver who gets wet in rain gets only a nominal amount of the increase. 

As the number of platforms increases, they are giving various offers to customers. The drivers are losing out. Usually, customers do not care about the feedback option after the task is fulfilled. When they do not give feedback, they are cutting the driver's income. That part is being swallowed by the management. In addition to the commission, the management is deducting an additional Rs 20 in the name of platform charge.

Overall, the priority in the competition between them is to retain and increase customers. The drivers should bear the burden and hardship. The owners will take the profits. Even if passengers and drivers are injured in a road accident, or the vehicle is damaged, the platform owners are making alternative arrangements for the passengers, leaving the driver at their own risk. The same situation applies even if the driver is a woman. When the location is not found properly, they value the customer’s opinion. Even if some customers harass female drivers, the platform does not take responsibility. 

In addition to these problems, migrant workers are being hired to drive the management’s own vehicles, vehicles under the purview of vendors and leased vehicles, at lower rates. They are also doing loading and unloading for free. The ‘one country, one tax’ system serves well for exploitation by the management. 

Even when someone is unable to bear these sufferings, he or she cannot give up the bond of platforms and extend services individually. Maintaining a personal vehicle in the transport sector is disappearing. Due to this, drivers are facing difficulties as neither they can live in the traditional way nor can they withstand the exploitation and harassment of owners in the new way. When the welfare board proposal came, the platform owners declared that they would not pay anything to the board. They told the government that what they are doing is community service and that whatever they collected in the name of commission was enough to cover the operating expenses. The situation of gig workers has become like a ship without a compass in the middle of the ocean. This has become a serious challenge to the working class movement.