Syllabus: GS-I, Subject: Society and Social Justice, Topic: Social sector – Human resources, Issue: Gig and Platform Economy
Context: A study conducted by the Indian Federation of App-based Transport Workers.
Highlights:
- Almost a third of app-based cab drivers work for over 14 hours a day of which 60% are from the Scheduled Castes and the Scheduled Tribes.
- Low earnings: 43% of the participants in the study earn less than ₹500 a day.
| +1 Advantage for Mains (Statement)
“These income disparities further exacerbate the already existing social inequalities and perpetuate cycles of poverty and distress.” |
Gig economy
It refers to work arrangements that are temporary, project-based, or freelance in nature.
- People in the gig economy are often called “gig workers”.
- They typically find and complete short-term projects or tasks.
Issues faced by gig workers:
- Income Instability: No guarantee of consistent work or pay, unlike traditional jobs with regular paychecks
- Lack of Benefits: Gig workers typically don’t receive benefits like health insurance, paid time off, or unemployment benefits.
- Job Security and Legal Protections: No formal employment contracts or job security.
- Unpredictable Work Conditions: Little control over their work environment or schedule.
Platform economy: It encompasses the online platforms that connect gig workers with businesses or consumers who need services.
- These platforms act as intermediaries, facilitating the exchange of work and streamlining the process.
Example: Uber, Swiggy
