“Sir, the app is showing me 5 minutes – why will it take you 15?” This is how my morning commute often starts. And, almost always, the answer is, “I am completing another ride and will be there ASAP.” So, while my trip has been accepted on Uber, the driver is likely finishing a ride on a competing platform. This got me thinking about the gig economy which has been at the center of intense debate, with critics often labeling it as exploitative and in need of tough regulation.
To help understand this issue better, I decided to engage directly with the people who would face the consequences of regulation – the cab drivers, auto drivers, and delivery partners. Over the past few months, I’ve spoken to more than 100 gig workers, and contrary to popular narrative, workers report that they are using these platforms to exercise their autonomy, in ways that a full-time job can’t offer.
Flexibility: a choice, not a constraint
One of the most common reasons people choose gig work is the freedom to set their own schedules. Last week, I asked Rajesh, who was driving me to a meeting at noon, about his workday. “I drive from 8 AM to 1 PM, then take a break until 5 PM before working until 11 PM,” he explained. His reason? “That’s when surge pricing is highest, so I can earn more while driving less.” In another conversation with Saleem-ji, who was well over 60 years old and driving me to the airport at 4 AM, I asked him “Do you drive all night? Don’t you get tired?”. His response, “the roads are empty, and it is a welcome break from the afternoon Delhi heat”.
For many gig workers, this flexibility allows them to plan their workday around their lives, not the other way around. If we were to regulate the gig work that required enforcement of pre-specified working hours, it would strip gig workers of the freedom to make flexible work arrangements.
Multi-Platform access: unlocking the entrepreneurial spirit
Another underappreciated aspect of gig work is the ability to choose between platforms. Just as we toggle between Swiggy and Zomato every day to find the best deal, gig workers are also optimizing across platforms. Once, Kumar showed up with a Zomato T-shirt while delivering my food for Swiggy. When I asked him about it, he laughed and said, “I started the day with Zomato deliveries.” Kumar just like my morning cab drivers switch between platforms based on incentives offered. These incentives dynamically change across the day and the ability to seamlessly switch between platforms is what allows gig workers to exploit these opportunities.
This seamless switching between platforms demonstrates that gig workers aren’t bound by exploitation but are driven by incentives, much like entrepreneurs. An attempt to regulate the gig economy by introducing regulations that require platform exclusivity will undermine the gig workers freedom to chase incentives by limiting the set of opportunities available.
A lifeline in a tight job market
While platform fees are a common complaint among gig workers, the deeper issue is often a mismatch between their available opportunities and aspirations. Sajid, a 21-year-old ITI graduate driving for BluSmart, summed it up: “There aren’t enough jobs, so I’m driving a cab.”
In a country struggling to create formal employment, gig platforms provide an essential source of income. While everyone hopes for better wages, imposing regulations like minimum wage could make it unviable for platforms to hire workers or scale. This, in turn, would limit opportunities for people like Sajid.
Minimum wage laws could also discourage the growth of new platforms, just as excessive regulation has hampered the manufacturing sector in the past. The priority should be creating opportunities for people to earn a living, rather than introducing regulations that might ultimately reduce both job availability and platform sustainability.
Empowered by platforms, not controlled by them
A big criticism of the gig economy is that workers are at the mercy of opaque algorithms and platform policies. However, the reality is more nuanced. Platforms often improve decision-making by providing workers with more information and better tools to manage work.
Ahmed, an auto driver I met recently, shared that he only started using ride-hailing apps three months ago. “I used to take direct hires from the street,” he explained, “but I tried a platform just to see how it works.” To his surprise, he found that the app allowed him to focus on driving rather than finding and haggling with customers. “Now I do three more rides a day, thanks to the platform” he reported.
Ahmed’s experience isn’t unique. Many gig workers I spoke to appreciate how these platforms have improved price discovery and streamlined their work, leading to higher take-home earnings. Rather than being constrained, they are being empowered to make better choices for themselves.
Engaging with gig workers across different sectors has convinced me that labelling gig work as being exploitative misses the mark. Gig workers appreciate the freedom and opportunities these platforms offer. Any heavy-handed attempt to regulate the sector – whether by mandating minimum wages or imposing higher compliance burdens on platforms – risks undermining the very flexibility that makes gig work attractive. The gig economy is more than just a system of labor – it is a platform for economic empowerment. To impose regulations risks shutting down this vital ecosystem.
Author is Team Lead at the Foundation for Economic Development