The Dark Side of the Gig Economy: Exploitation and the Fight for Workers’ Rights
Gig Economy.
The gig economy is often portrayed as a modern, flexible way of working, where people can choose their own hours and be their own bosses. Companies like Uber, Zomato, Swiggy, and Upwork have revolutionised the way people find jobs and earn money. However, beneath this promise of freedom and opportunity lies a harsh reality: millions of gig workers are trapped in a cycle of low wages, job insecurity, and lack of basic rights.
An analysis of the gig economy reveals the severe exploitation of workers, highlighting how digital platforms have intensified traditional labour market injustices through technology. These platforms, while presenting themselves as sources of opportunity, have created an environment where workers face even greater insecurity and unfair treatment. This essay examines the mechanisms of worker exploitation, the illusion of flexibility, the lack of protections, and the growing resistance from workers.
The Gig Economy: A Digital Version of an Old Problem
For decades, daily wage labourers in India have gathered in job markets, hoping to be hired for work. Middlemen, known as thekedaars, negotiate wages that favour employers while leaving workers with barely enough to survive. The gig economy has simply moved this process online. Now, instead of physically gathering at a marketplace, workers log onto apps, competing for jobs in a virtual space where wages are pushed lower and lower.
Digital platforms act as the modern-day thekedaars, controlling workers through apps and algorithms. These platforms avoid responsibility by labelling workers as “independent contractors” rather than employees, meaning they are not entitled to benefits such as minimum wages, paid leave, or health insurance. While companies claim they are offering employment opportunities, they are actually profiting from workers’ desperation.
The Illusion of Flexibility and Choice
One of the biggest selling points of the gig economy is flexibility. Workers are told they can work whenever they want, choosing their own hours. But in reality, many gig workers find themselves working extremely long hours just to earn enough to survive.
For instance, food delivery workers for Swiggy and Zomato report working 12-16 hours a day because the pay per delivery is too low. If they refuse a job, they risk being penalised by the platform. Ride-hailing drivers on Uber and Ola face similar problems. If they do not accept enough rides or if their customer ratings drop, they may be “soft deactivated,” meaning they receive fewer jobs or are completely removed from the platform. This system forces workers to accept unfair working conditions, making the so-called “freedom” of gig work nothing more than an illusion.
Algorithmic Control: The Invisible Boss
Unlike traditional jobs where employees have human managers, gig workers answer to algorithms. These algorithms decide who gets a job, how much they are paid, and even whether they continue working on the platform. This process is often opaque, meaning workers have no way of knowing why certain decisions are made.
For example, Uber and Ola drivers have reported sudden pay cuts when companies change their pricing models without warning. Delivery workers find that incentives and bonuses are frequently modified, making it harder to earn a decent wage. Since these decisions are made by algorithms, workers have no one to negotiate with or appeal to when they are treated unfairly.
Another problem is “shadow banning,” where workers who do not meet certain hidden criteria receive fewer jobs without being formally fired. Because they do not understand why they are not getting work, they are left in a state of anxiety and insecurity.
The Rating System: A Tool for Exploitation
Gig economy platforms use customer rating systems to determine a worker’s future opportunities. While this might seem like a fair way to assess performance, in reality, it puts workers in a vulnerable position. Customers often give poor ratings for reasons beyond the worker’s control, such as traffic delays or company policies. A single bad rating can lead to reduced work opportunities or even termination.
Workers are often forced to go out of their way to please customers, even if it means working in unsafe or exploitative conditions. As one worker’s protest slogan states: “Rating nahi, haq chahiye!” (“We don’t want ratings, we want rights!”). This highlights the fundamental issue: gig workers are being evaluated as products rather than human beings.
The Case of “Insta Maids”: Extreme Exploitation
One of the most shocking examples of gig economy exploitation is the “Insta Maids” service, which promises to provide domestic workers within 15 minutes at just ₹49 per hour. This service reduces workers to mere commodities, treating human labour as a disposable good. Instead of providing financial security, dignity, or professional recognition, these platforms treat workers as nothing more than a product for consumer convenience.
The hypocrisy of platform founders is evident. While they claim to support fair wages and job security, they lobby against laws that would provide protections for gig workers. For example, the founder of Urban Company publicly praises the gig economy for creating jobs but privately opposes legislation that would grant gig workers employee rights.
The Struggle for Rights: Worker Resistance and Protests
Despite the challenges, gig workers are organising and fighting back. Across India, delivery workers, ride-hailing drivers, and other gig workers have staged protests and strikes demanding fair wages and better conditions.
- Protests and Strikes
Workers have taken to the streets in multiple cities, refusing to work until their demands are met. For instance, Swiggy and Zomato delivery workers protested against wage cuts and unfair deactivations, demanding transparent payment structures. Ola and Uber drivers have also gone on strike, calling for increased base fares and compensation for rising fuel costs.
- Digital Advocacy
Social media has become a powerful tool for gig workers to expose unfair labour practices. Hashtags like #GigWorkersUnite and #PayUp have helped workers share their experiences and gain public support. Online petitions and legal battles are also being used to push for worker protections.
- Formation of Gig Worker Unions
New unions such as the Indian Federation of App-Based Transport Workers (IFAT) and the All India Gig Workers’ Union (AIGWU) have emerged to advocate for gig workers’ rights. These unions help workers negotiate fair contracts, provide legal assistance, and create solidarity networks.
Legislative Challenges and Corporate Resistance
Some states in India have attempted to introduce laws to protect gig workers. Rajasthan passed a law promising social security, data access, a grievance redress system, and a tripartite board for worker representation. However, the new BJP government has refused to implement the law.
In Karnataka and Telangana, similar efforts were stalled due to opposition from corporate lobbying groups like NASSCOM and the Confederation of Indian Industry (CII). These organisations argue that recognising gig workers as employees would harm innovation and business growth, showing a clear preference for corporate profits over worker rights.
The Global Perspective: Lessons from Other Countries
Countries like the UK and Spain have taken steps to protect gig workers. The UK Supreme Court ruled in 2021 that Uber drivers must be treated as workers rather than independent contractors, giving them access to minimum wage and paid leave. The European Union is also working on legislation to improve gig worker protections. India has the opportunity to follow these examples, but strong political will and public support are needed to counter corporate resistance.
Conclusion: The Need for Systemic Change
The gig economy, despite its promises of flexibility and opportunity, has become a system of modern labour exploitation. Workers are controlled by algorithms, paid meagre wages, and denied basic rights. While companies profit, gig workers struggle to survive.
Change is possible, but it requires collective action. Governments must enforce strong labour laws, consumers must be aware of the human cost of convenience, and workers must continue to organise and demand their rights. Recognising gig workers as employees, ensuring fair pay, regulating algorithms, and strengthening unions are critical steps toward a fairer gig economy.
As we embrace digital innovation, we must also ensure that technology serves humanity—not the other way around. Only then can we create a future where gig work is truly fair, empowering, and dignified.
Subscribe to our Youtube Channel for more Valuable Content – TheStudyias
Download the App to Subscribe to our Courses – Thestudyias
The Source’s Authority and Ownership of the Article is Claimed By THE STUDY IAS BY MANIKANT SINGH
