Dark Side of Gig Economy: Ola, Uber, and Porter Provide Poor Working Conditions for Workers, Slams Report

Ride-hailing giants Ola and Uber, along with logistics company Porter, offer poor working conditions for gig workers, according to a report released on Tuesday.

The report by Bengaluru-based Fairwork India highlights the concerning labor standards within India’s platform economy, stressing the urgent need for improvements in the working conditions of gig workers.

The report reveals that many drivers are trapped by the promises made by platforms like Ola and Uber, facing shifting customer behavior and impersonal support systems.

Natarajan, a 44-year-old veteran driver from Chennai, likened these companies to “vittal poochi” (winged termites), which lure drivers with enticing promises but fail to deliver on them. Drawn by Ola’s offers, Natarajan became a driver for the company in 2017 but soon witnessed a decline in benefits.

“Once the companies gained our trust, they started reducing the offers and opportunities they initially provided,” Natarajan explained. “But now we’re stuck; it’s nearly impossible to step outside of Ola or Uber and start our own independent taxi services.”

He also noted that the rise of these platforms has influenced public behavior, making it difficult for drivers to operate outside their ecosystem. Features like “constant tracking and emergency support” have won the public’s trust, making these platforms seem safer than traditional cab services.

Additionally, Natarajan pointed out that automation has made it harder for drivers to raise concerns. “The automated AI responses feel detached and uncaring. They always say, ‘We will take this into consideration,’ but nothing changes.”

The report was based on interviews with 440 workers from 11 platforms in five cities. It evaluated the platforms based on five key principles: fair pay, fair conditions, fair contracts, fair management, and fair representation.

The platforms assessed included Amazon Flex, Bigbasket, BluSmart, Flipkart, Ola, Porter, Swiggy, Uber, Urban Company, Zepto, and Zomato, which offer location-based services across various sectors such as personal care, logistics, food delivery, and transportation.

Coronavirus: As India reopens, Indians reluctant to use public transport, 62% averse to use Ola, Uber

As India prepares to ease the lockdown from May 18, a survey revealed that more than 70% people do not want to use public transport while 62% are reluctant to use cab-hailing apps like Ola and Uber. The new survey conducted by market research and analysis firm Velocity MR revealed on Friday that 71% would reduce shopping in malls and supermarkets and 80% would prefer to continue with online shopping.

At least 50% people anticipated increase in unemployment rates, followed by lack of job security in the private sector (53%) due to the Covid-19 pandemic. “Our study shows that in the next six months to one year, 47% are planning to invest in mutual funds followed by stock/shares (33%) and gold (30%),” said Jasal Shah, Managing Director and CEO, Velocity MR.

About 77% of those surveyed wish to use Arogya Setu app and more than 57% want to maintain social distancing and washing and sanitizing hands at regular intervals going forward in their daily lifestyle in the wake of the coronavrus pandemic.

Banking sector can witness a major boost through their digital payment services as close to 90% of respondents are willing to shift from cash to digital payments. “Almost 80% of respondents considered the non-availability of alcohol and cigarettes as one of the major benefits, and 74% considered work from home advantage and not a disadvantage,” the survey said.

The survey was conducted in April with a sample size of 3,000, covering categories including shopping habits, purchase habits, travel, social activities, investments, social responsibilities during the pandemic.

COVID-19 outbreak is nothing like India has ever seen before. If smallpox that took over 15,000 lives in 1974, is regarded as the worst epidemic in India, then COVID-19 is the one deadliest pandemic case that the country has ever come across. With just a little over 3 months, the virus-infected over 4 million people across the globe.

Velocity MR, acknowledging the impact of the COVID-19, conducted a study to understand and gauge the sentiments of the Indian towards the virus outbreak. This study covers the concern level, awareness level of the consumers as well their thoughts on the outbreak, the business it impacted and the initiatives taken by the government in India.