Professional Documents
Culture Documents
Fairwork India
Ratings 2020:
Labour Standards in
the Platform Economy
2 | Fairwork India Ratings 2020
Executive Summary
As the scale and scope of work mediated by digital platforms has
grown in India, so has the number of workers registering on such
platforms. This rapid growth has also raised questions about the
work conditions that result from digital mediation.
As in other parts of the world, platform a cross-sectoral view of working after accounting for costs. Urban
workers in India are predominantly conditions, and provides new entrants Company, Flipkart, Grofers, and
paid a piece rate (i.e. per task), and are with a glimpse of what to expect from Ola were the exceptions. This
typically classified by the platforms platform work. highlights the need for regulation
as “independent contractors”, or and worker consultation on
as driver / delivery “partners”. One This is the second year of scoring matters of pay.
major concern is that such workers platforms using the Fairwork principles
do not benefit from labour regulations in India. Last year, twelve platforms, � Workers have little to no social
pertaining to wages, hours, working from sectors including ride-hailing, security. While some platforms
conditions, and the right to collective e-commerce, food-delivery, and home provide accident insurance,
bargaining. Consequently, there is an services, were scored. This year, eleven workers were unclear of the
urgent need to examine the nature platforms were scored, with nine being procedures to make claims.
of digitally-mediated work and its repeated from the first year. Data from Only two platforms (Urban
effect on the livelihoods of millions of multiple sources indicates that, as of Company and Flipkart) were able
workers in the country. February 2020, an estimated three to demonstrate that additional
million workers were registered on the measures were taken to actively
To this end, the Fairwork project eleven platforms scored this year (see improve working conditions.
evaluates working conditions on digital Appendix III).
platforms and scores them according � With the exception of Urban
to five principles of ‘fair work’, Key Findings Company and Dunzo, there
was insufficient evidence
developed through multi-stakeholder
meetings at UNCTAD, the International that accessible. readable and
� The 2020 platform scores
comprehensible terms and
Labour Organisation, and in-country show the heterogeneity in
stakeholder meetings in India, working conditions amongst conditions were available to
Germany, and South Africa. The five platforms, corresponding to workers. With a growing reliance
principles are Fair Pay, Fair Conditions, the policies and management by some platforms on labour
Fair Contracts, Fair Management, and practices that platforms have recruited from subcontractors,
Fair Representation. Evidence for in place. Urban Company, a workers were often unclear who
compliance with these five principles home services platform, tops was responsible for their working
is collected through desk research, the list of platforms studied this conditions and for the payment of
worker interviews, and interviews with year, followed by Flipkart, an wages.
platform management. The evidence e-commerce platform. Interviews
is used to assign a “fairwork” score to with managers on both platforms � Platform companies fared better
when it came to the principle
individual platforms. With a basic and revealed that the Fairwork
of Fair Management. There
an advanced point awarded for each of process had provided them
was sufficient evidence that
the five principles, a platform can earn with new perspectives from the
eight of the eleven platforms
a maximum score of ten. workers’ point of view - enabling
provided due process for workers
them to reflect on their policies.
The Fairwork project aims to study through a channel for workers
work conditions on platforms on an to communicate and appeal
� While the potential of high
disciplinary decisions including
annual basis, with its scores offering wages and short payout cycles
an independent perspective on work continues to draw workers deactivations. Only Urban
conditions for policy makers, platform to platform work, there was Company and Flipkart were
companies, workers, and ethically- insufficient evidence that workers awarded the advanced point.
minded consumers. In particular, on seven of the eleven platforms Urban Company was awarded
it offers existing platform workers earned the minimum wage rate the point for actively blocking
Labour Standards in the Platform Economy | 3
customers who discriminate companies fared poorly when precarious livelihoods of all
against service providers. Flipkart it came to acknowledging a workers (platform or otherwise),
was awarded the point for its collective voice for workers. this report shows that the
proactive initiatives to employ However, no platform was pandemic has only exacerbated
women and physically-disabled agreeable to negotiating with a precarity already endemic to
persons in its last-mile workforce. worker associations and unions. platform work.
Urban Company 8
Flipkart (Ekart) 7
Dunzo 4
Grofers 4
Amazon (ATS) 2
Bigbasket 2
Housejoy 2
Ola 2
Swiggy 1
Uber 1
Zomato 1
Editorial:
Contents
platform fulfils the conditions. Being a
team of researchers with no affiliation
with workers, platforms or government,
our scores provide an independent
assessment of platforms.
06
scores we report here, across various
principles, points to heterogeneity in The Fairwork Framework
the organisation of platforms across
08
domains, and differences in their Overview of the Indian Platform
interpretation of regulation. Based
Economy
on the scores and findings, some
platforms have expressed an interest
in creating fairer working conditions.
Another purpose of the scores is to
11 The Legal and Policy Context
19
ratings to imagine, and realise, a fairer
platform economy in India.
Theme in Focus: Precarity
29
Appendix II: Identifying Platforms and
Workers
30
Appendix III: Estimates of Platform
Workforces
32
Appendix IV: Funds Raised by
Platforms
35 Endnotes
6 | Fairwork India Ratings 2020
01 The five
principles
Fair Pay
Workers, irrespective of their
employment classification, should earn
the mandated minimum wage in their
home jurisdiction after taking account
of work-related costs.
Fair Conditions
Platforms should have policies in place
to protect workers from risks arising
from the processes of work, and should
The
take proactive measures to protect
and promote the health and safety of
workers.
Fairwork
Fair Contracts
Terms and conditions should
be accessible, readble and
Framework
comprehensible. The party contracting
with the worker must be subject to
local law and must be identified in the
contract. If workers are genuinely self-
employed, the terms of service must
be free of clauses which unreasonably
exclude liability on the part of the
The Fairwork project studies platform.
how well they fare. Its goal is through which workers can be heard,
can appeal decisions affecting them,
to show that better, and fairer, and be informed of the reasons behind
those decisions. There must be a
jobs are possible in the platform clear channel of communication to
workers involving the ability to appeal
economy. management decisions or deactivation.
The use of algorithms must be
transparent and result in equitable
To do this, the project uses five principles that digital platforms outcomes for workers. There should
should comply with in order to be considered to be offering ‘fair be an identifiable and documented
work’. Fairwork scores platforms against these principles to policy to ensure equity in management
show not only what the platform economy is, but also what it of workers on a platform (for example,
could be. The five Fairwork principles were initially developed in the hiring, disciplining, or firing of
at a multistakeholder workshop at the International Labour workers).
Organization. Follow-up workshops were then held for local
stakeholders in Berlin, Bangalore, Cape Town and Johannesburg.
These workshops, and subsequent conversations with platform Fair Representation
workers, platforms, trade unions, regulators, academics, and Platforms should provide a documented
labour lawyers allowed the project to revise and fine-tune the process through which worker voice
principles, and ensure that they were applicable to the Indian can be expressed. Irrespective of their
context. employment classification, workers
should have the right to organise in
Further details on the thresholds for each principle, and collective bodies, and platforms should
the criteria used to assess the collected evidence to score be prepared to cooperate and negotiate
platforms, can be found in Appendix I. with them.
Labour Standards in the Platform Economy | 7
02 Methodology
Desk Research
The process starts with desk research
to gain an understanding of the
platforms in operation, by identifying
the largest and most influential ones. Worker Interviews
This research establishes the range The third method involves
and types of the platforms that will interviewing workers of each platform.
be ranked, and identifies points of These interviews do not aim to build a
contact or ways to access workers. representative set of experiences. They
Desk research also serves to identify instead seek to understand the work
any public information that could be processes and how they are carried out
used to score a platform, for instance and managed. They allow the project
the provision of particular services to team, for instance, to see contracts
workers or ongoing disputes. and learn about platform policies that
pertain to workers. The interviews also
03
allow the team to verify the policies
In India, desk research helped identify
eleven prominent platforms operating and practices which are in place. See How we
in Bangalore, based on the size of Appendix II for details on recruitment of score
their workforce, customer base, and workers for interviews.
investments.8 Each Fairwork principle is broken
down into two points: a basic point
Putting it all together and a more advanced point that can
Platform Interviews This threefold approach provides a only be awarded if the basic point
The second method involves way to cross-check the claims made has been fulfilled. Every platform
approaching platforms for evidence. by platforms, while also providing the receives a score out of 10. Platforms
Platform managers are interviewed opportunity to collect evidence from are only given a point when they
and evidence is requested for each multiple sources. Final scores are can satisfactorily demonstrate their
of the Fairwork principles. This step collectively decided by the Fairwork implementation of the principles.
provides insights into the operation team based on all three forms of
and business models of the platforms, evidence. The scores are peer reviewed Failing to achieve a point does not
and opens up a dialogue through which by the country team, the Oxford necessarily mean that a platform
platforms can agree to implement team, and two reviewers from other does not comply with the principle in
changes. In cases where platform Fairwork country teams. This provides question; it simply means that we were
managers do not agree to engage with consistency and rigour to the scoring unable to evidence its compliance.
Fairwork, scoring is limited to evidence process. Points are only awarded
obtained through desk research and if clear evidence exists for each See Appendix I for further details on
worker interviews. threshold. the Fairwork scoring system.
8 | Fairwork India Ratings 2020
Overview
of the
Indian
Platform
Economy
Ever since the launch of the e-commerce site Flipkart in 2007,
India has witnessed the emergence of several platforms that
offer “work on-demand via apps” in sectors including ride-
hailing, courier services, food delivery, and domestic and
personal care services (such as beauty, carpentry, electrical, or
plumbing services).
However, there is little reliable data on, principles. While interviews with from services, with the rest coming
for instance, how many platforms there workers were conducted between from industry. Likewise, between
are, or their revenues. Further, while November 2019 and February 2020 1984 and 2010, the annual growth in
the Indian government has proposed (i.e., before the outbreak of the productivity in services (4.9 percent)
that platforms should provide data on COVID-19 pandemic in India), desk was ahead of the national figure (3.7
jobs,9 there is no definitive estimate research and interactions with the percent).14 But services include a
of the size of the platform economy platforms continued until November range of activities which vary in the
workforce. By assembling evidence 2020.10 productivity and the skills they employ.
from various sources (see Appendix In 2016, for instance, as Figure 2
III), we estimate that the eleven A prominent feature of the Indian shows, the productivity per worker in
platforms featured in this report have economy is its decreasing dependence trade, and in transport, storage and
a total workforce of over three million on agriculture for employment, as communications was barely a third of
(30 lakh) workers. Figure 1 shows.11 The figure also shows what it was for business, and less than
that trade, and transport and storage a fourth of financial services.15 Figure
This section of the report offers an (service sub-sectors in which many of 2 also shows that the differences in
explanation for the growth of location- the platforms studied by this report productivity correspond to differences
based platform services in terms of operate), have led the way in offering in education. In 2005, the share of
macro-economic shifts that have taken jobs over the last two decades.12 employees with a secondary education
place in India in recent years. Later in sub-sectors such as transport and
sections describe the work and work Despite remaining the largest source of
communication, and wholesale and
conditions in the platform economy in employment, agriculture’s contribution
retail trade, was less than half of what
more detail, drawing on our study of to gross value-added in 2016 was
it was in financial services and in
eleven platforms using the Fairwork only 15.23 percent.13 The biggest
business services.16
contribution of 51.13 percent came
Labour Standards in the Platform Economy | 9
70%
75%
1991
62.6%
62.6%
Agriculture Industry Services
52.5%
50% 2016
45.1%
45.1%
Proportion of
employment
35% 2016
31.9%
31.9%
2016
Trade
21.7%
17.5% 1991
Others
15.7%
15.7% 14.6%
14.6%
9.9%
9.9%
7.4%
7.4%
Figure 2 Comparing worker productivity in current Rupees (2016), and levels of secondary education (2005), by
services sub-sectors
Completed
employees with
Proportion of
at least
(2005)
35%
35% 34%
34%
66%
23%
23%
84%
84% 16%
16% secondary
65%
65% 66% 78%
78%
education
1400000
1,500,000
₹ 12,59,280
1120000
1
Worker productivity
1,000,000
in services’ sub-
840000 ₹ 8,11,680
sectors
(2016)
560000
500,000
Figure 3 Changing proportions of employment in the organised economy with access to social protection, 2000-
2012
Proportion of casual
Proportion of regular Proportion of regular
Proportion of non- employment
employment employment
regular employment (within non-regular
(with social protection) (without social protection)
employment)
100% 40% 20% 20%
16.5% 17.4%
31.2% 15.9%
75% 30% 15% 15%
61.9%
51.3% 21.5%
50% 20% 10% 10%
As the employment profile of the venture capital investments in India,25 labelled “independent contractors”
country has changed, those leaving an estimated US$14.82 billion went to or “partners”, belong to either of the
agriculture have increasingly found nine of the eleven platforms studied in (growing) regular non-protected or
livelihood opportunities in relatively this report (see Appendix IV). A final casual worker categories. How these
low-value added sectors, with low factor in this growth is an ambiguous contractors or partners (i.e. workers)
educational barriers to entry.17 Cities legal environment, which is discussed perceive and experience platforms
beckon with opportunities,18 and the in The Legal and Policy Context section are considered in the Theme in Focus:
resulting migration is male-dominated of the report. Precarity section. But, before that, the
and rarely permanent.19 Once in the next section will present an overview
city, at least some of them find work Having outlined some of the reasons of the legal context of the platform
in the app-based platforms, attracted behind the recent growth in location- economy in India.
in part by the higher income, and based platform services in India,
the short and relatively predictable we turn to considering how work
payment cycles, in comparison with conditions have changed in the
other work alternatives. economy. Since the platforms studied
in this report belong to the organised
A second factor that has facilitated economy, the conditions of work in this
the growth of the platform economy segment of the economy are worth
in India is the proliferation of mobile
phones with internet connectivity. A
examining.26 Although employment
in the organised economy is relatively
“Between 2013
country that had barely 1.1 telephones small, it accounted for 45.6 percent of and 2019, of a total
per 100 people in 1994,20 had 93.27 total output in 2012.27 In services too,
by 2018. By 2018, 98.12 percent of the organised economy contributed of US$39.7 billion
in venture capital
all telephone connections were mobile 50.6 percent to the total sectoral
access,21 of which 34.7 percent had output, whereas it accounted for only
broadband internet connections.22
A third factor in the growth of the
25.6 percent of sectoral employment.
investments in
platform economy has been the Despite the productivity of the
organised economy, including in the
India...US$14.82
increasing last-mile access for platform
workers to reach customers. India services sector, Figure 3 shows that billion went to
the proportion of regular employment
nine of the eleven
is the world’s biggest two-wheeler
(motorcycle and scooter) market, with with social protection has declined.
platforms studied in
a third of households owning one.23 A This decline has been accompanied
fourth factor is the supply of venture by an increasing proportion of regular
capital to support the expansion of employment without social protection,
and non-regular employment,
this report.”
the industry.24 Between 2013 and
2019, of a total of US$39.7 billion in especially the casualisation of labour.28
Most platform workers, euphemistically
Labour Standards in the Platform Economy | 11
Fairwork Scores
Score (Out of 10)*
Urban Company 8
Flipkart (Ekart) 7
Dunzo 4
Grofers 4
Amazon (ATS) 2
Bigbasket 2
Housejoy 2
Ola 2
Swiggy 1
Uber 1
Zomato 1
* The breakdown of scores for individual platforms can be seen at: www.fair.work/ratings
Labour Standards in the Platform Economy | 13
The platform scores in this report longer hours on the platform, these too our study demonstrated sufficient
rely on data gathered using the contributed to extended hours of work. evidence that satisfied all the criteria
Fairwork Framework as laid out Finally, even in cases where platforms for the advanced point.
in the Methodology section. After promised a minimum guaranteed
desk research was conducted, amount to workers, on the condition
workers from all eleven platforms that they were logged on to the
were interviewed,48 and evidence platform for a stipulated duration (and
was collected from the platform satisfied other conditions), earnings
managements of four (namely, Dunzo, fell below minimum wage rates once Fair Management
Flipkart, Uber and Urban Company). fuel costs were taken into account.
Appendices I and II provide further The basic point on Fair Management
details of the evidence used to score was awarded to platforms that
each point, and how it was gathered. demonstrated due process in decisions
affecting workers. Of the eleven
platforms studied, seven offered
Fair Conditions communication channels for workers
that served this purpose, including
A basic point was awarded to helpline numbers, management-
Fair Pay platforms if they were able to mitigate created Whatsapp groups and, in some
risks faced by workers, by offering cases, one-on-one communication
Of the eleven platforms we studied accident insurance while logged in, channels with managers or team leads.
this year, workers on eight earned the safety gear and safety training (paid for However, workers from the other
hourly minimum wage before factoring and conducted by the platform), and four platforms (namely Ola, Swiggy,
in their costs (see Appendix I for having an SOS button or emergency Uber and Zomato), were increasingly
details on how the hourly minimum helpline for workers. There was dissatisfied with the communication
wage is derived). However, there was enough evidence to award the basic channels made available to them. The
insufficient evidence that workers point to seven of the eleven platforms: helpline numbers provided were either
on Bigbasket, Housejoy and Swiggy Bigbasket, Dunzo, Flipkart, Grofers, unresponsive most of the time or had
earned the minimum wage before Housejoy, Swiggy and Urban Company. premeditated responses. Workers on
costs. While within Housejoy, there these platforms added that ID blocks
was sufficient evidence that beauty The advanced point was awarded without warning were frequent, and
workers and home service providers to platforms that went beyond risk that there was no documented process
(electricians, plumbers, technicians mitigation and took active steps to appeal when they were blocked
etc.) earn above the minimum wage, to improve conditions for workers. (see the accounts of ID blocks in
there was insufficient evidence Only Urban Company and Flipkart Workers’ Stories section ). Workers also
that professional cleaning crews, demonstrated sufficient evidence for complained that they had to report the
hired through subcontrators, earn this point. Urban Company provided block at the platform hub in order to
the minimum wage as well. On the health insurance (for top performers be unblocked, which effectively meant
advanced point, workers on Flipkart, in selected categories), redesigned losing out on daily earnings and daily /
Grofers, Ola, and Urban Company equipment to reduce material weekly incentives.
earned the hourly minimum wage handling-related injuries and offered
after accounting for fuel costs (see skill certification, while Flipkart Hub-based platforms fared better
Appendix I for an analysis of other provided career progression programs with regards to the basic point for
costs which are not accounted for in for their delivery workforce. Fair Management. Workers from
our calculations.) platforms like Bigbasket and Flipkart
contacted their hub manager directly if
It is worth pointing out here that pay they faced an issue, and hub-specific
on platforms proved hard to estimate, WhatsApp groups for workers were
with even workers finding it hard to also maintained by the management.
compute their costs and hours of Fair Contracts Housejoy and Urban Company also
work. For one, even where workers maintained category-wise Whatsapp
made the (hourly) minimum wage For Fair Contracts, platforms were groups for their workers. The concerns
criterion, they did so by working awarded a basic point if a contract raised by workers on these Whatsapp
more than the 48 hour work week existed and was made readable, groups were similar across platforms;
(see Appendix I for more details). comprehensible and accessible to workers recalled sorting out navigation
Additionally, on some platforms, workers by the platform. There was issues, order allocations, and how
pay has several components, with sufficient evidence for only Dunzo to deal with rude customers. Urban
incentives constituting a large share. and Urban Company to merit this Company also sent its workers multiple
Since incentives tended to be tied to basic point. None of the platforms in messages if their rating dropped below
14 | Fairwork India Ratings 2020
JasonArora / Shutterstock.com
a certain threshold before blocking and training to sensitise workers to the serve as a channel for workers to
re-training them. Their application also issue, and provides separate locker collectively express their opinion about
remained accessible to workers who rooms for men and women. various policies to the management.
were blocked, allowing them to appeal Beyond these examples, there was
the blocking decision. no evidence of platform management
supporting or acknowledging worker
The advanced point for this principle is collectivisation in the platforms
awarded to platforms that demonstrate studied.50 Furthermore, in cases where
inclusiveness by proactively seeking Fair Representation worker strikes had taken place in the
to employ marginalised populations. past (mainly in ride-hailing and food
Only two platforms, Flipkart and Urban The basic point on this principle was
delivery platforms), platforms had
Company, were awarded this point. awarded where there were worker
reacted in different ways. Zomato, for
As detailed in the next section, Urban voice mechanisms and freedom of
example, blocked the IDs of several
Company provided documentation association, and the advanced point
workers who participated in a strike,
of instances when they had publicly where there is evidence of worker
as detailed in the Workers’ Stories
supported their workers who faced collectivisation being permitted.
section.51 Additionally, the Zomato
discrimination. They also agreed to One of the two examples of spaces
contract explicitly states that any
add a no discrimination clause in the or fora for worker voices were the
partner who is found “indulging in acts
customers terms of use. Flipkart, regular, face-to-face meetings that
such as creating ruckus / strike / or any
meanwhile, provided examples of Urban Company conducted with small
activity against Zomato, which could be
initiatives it has established to diversify groups of workers from each service
detrimental to the Zomato’s brand and
its last-mile workforce by proactively category. These meetings were called
its image” will be terminated.52
employing women and physically and run by the management to take
disabled persons.49 It also conducts up worker concerns and facilitate For the advanced point, there was
sensitisation programs for its supply a two-way conversation between insufficient evidence that any platform
chain workers to ensure an inclusive workers and management. The other currently recognised or was willing
working experience for differently was the monthly town hall meetings to recognise worker trade unions.
abled and women workers. Besides its of Flipkart which brought together Overall, none of the platforms showed
zero-tolerance policy towards sexual workers, Team Leads, HR staff and an interest in acknowledging, or
harassment, the platform also provides subcontractors. These meetings encouraging, worker collectivisation.
Labour Standards in the Platform Economy | 15
Platform in Focus:
Fair Pay
Principle 2:
Mitigates task-specific risks
Actively improves working 2
Fair Conditions conditions POINTS
empplyment relationship
Management
voice mechanism
representation/bargaining
its worker contract into multiple workers and / or by customers.55 of workers are an example. These
languages and notify workers by the For example, Urban Company has worker-centred discussions, one
first quarter of 2021.54 resisted requests from some workers of which the team witnessed, are
to segregate jobs by partner identity hosted either at the Urban Company
Urban Company also offers clear (based on their caste or region) offices or in cafes on the field based
channels of communication for and blocked a customer who did on the convenience of the group.
workers’ grievances, including a not want Muslim service providers. The management has also rolled out
helpline and Whatsapp groups created After engaging with Fairwork, Urban quarterly job satisfaction surveys in
by the management that workers found Company has also agreed to add a no three languages for feedback from
responsive. Where worker accounts discrimination clause in its customers partners on their experience with
are deactivated, workers are still able terms of use. Urban Company and their inputs on
to access the Urban Company app policies they would like changed. While
and raise appeals, a provision that Besides the helpline and Whatsapp such discussions and surveys may
almost no other platform provides at groups that are focussed on individual foster a conversation and participation
present. Though the Urban Company grievances or queries, Urban Company by partners, these fora remain
management is yet to take proactive has also created fora to enable management-led. Urban Company is
steps to employ marginalised groups, conversations between workers and yet to encourage and accept worker-
there were examples that showed that management to discuss collective governed bodies as a channel for
the management had reacted strongly grievances. Regular Focussed Group interaction between partners and
to instances of discrimination against Discussions (FGDs) with small groups management.
Labour Standards in the Platform Economy | 17
Workers’ Stories
Antony* hails from Kerala. He is 33 and married city when estimating ride durations, making
with children. Prior to joining Uber, Antony the target number of rides for various incentive
worked as a driver in Saudi Arabia. He returned levels unrealistic. Frequent blocking is another
Antony to India to be closer to his family. His family threat drivers face, with implications for their
resides in Kerala while he stays in Electronic daily / weekly incentives. Antony was blocked
Uber Cab Driver City, Bangalore, sharing a flat with two others. recently from the platform. “A customer had
Uber seemed the best option for him since he complained that my driving was rash and I was
had previously worked as a driver. He also tried immediately blocked. I tried sending them
food delivery for a while, but couldn’t bear the messages and calling them but they were
exposure to the pollution in the city that driving unresponsive. So I had to go to their office, wait
a two-wheeler entailed. in line, and ask them to unblock me only after
which they let me go with a warning.” Falling
When we interviewed Antony on Church Street, incentive rates are a concern as well—the
Bangalore, he told us that he had been driving weekly incentives dropped from Rs 6000 to Rs
with Uber for 17 months. Until a month ago, 2000 during the time he’d been with Uber.
he did not own the car he drove—he leased
the car from Uber’s subsidiary and had to pay Antony pointed out that there are no regular
Rs 17,000 a month for 16 months to clear and reliable channels through which to raise
the lease, which he just had. Antony said he these issues. While he did receive a couple
drives on average for 16 hours a day everyday, of messages about ‘Samaaj’ meetings being
which is in the highest bracket of working hours conducted at the Uber hub, the pressure to
amongst our interviewees. With a sense of meet his monthly lease obligations left him
urgency in his voice, he said, “I needed to clear with little time to attend. Besides, parking
the lease right? So I had to keep driving”. space for all drivers would probably not be
available. Despite moving from Saudi Arabia to
Antony has his share of issues with Uber. He Bangalore to be closer to his family, he finally
complained that the Uber navigation system visited them only last month, after clearing
does not take into account the traffic in the Uber’s lease.
*Names changed
to protect worker
identity
JasonArora / Shutterstock.com
Theme in Focus:
Precarity
As the report pointed out in an earlier section, precarity—in
the sense of labour and income insecurity, and the lack of
work-based identity—has long featured in the lives of a large
proportion of Indian workers. It is not new, nor unique, to
platform work in India. Yet, the reasons for its existence and
the characteristics it takes on specifically within platform work
merit attention.
Based on worker interviews in Discussions with workers, and other depending on their experience on the
Bangalore, this section highlights data collected, confirms that earnings platform and their relationship with
the form precarity takes in platform on a platform can vary widely across it (how many times they have been
work along these dimensions (to the workers, and by work location and time blocked, or participated in strikes may
extent they overlap with the Fairwork of day. “Incentives” play an important make a difference, for example).58
principles): income insecurity, labour role in bringing about these variations
insecurity (reflected in working in several platforms. Shifts in income Besides all these variations in
conditions, some of which are a depend first on how big a chunk of the incentives in the short run, incentives
result of the ambiguous location of earnings comes from incentives and that were offered to bring workers on
platform companies in the regulatory this is different for different platforms. board have also declined, and often
landscape), and a lack of work-based For instance, incentives could with little notice. For instance, the
identity due to various models of constitute as much as 40-50 percent incentives offered by Ola and Uber
subcontracting by platform companies. of earnings on some of the food when they started their operations
delivery platforms;56 and a lower but in Bangalore in 2011 and 2013
Insecurity in Income still significant percentage for drivers respectively,59 had declined drastically
by 2017.60 Similarly, incentive
of cabs (about 20 percent, based on
The “gig” or “flexible” labels that are interview data). However, they barely structures offered by Zomato and
associated with platform work may played a part in home service platforms Swiggy too had become significantly
suggest that platform workers take on such as Housejoy and Urban Company, less favorable by 2019.61 Indeed,
this work part time or in addition to or for an ecommerce service like many worker strikes and attempts at
other work they undertake. However, Flipkart. organisation among platform workers,
workers were overwhelmingly in various parts of India, since that time
working full time on these platforms Incentive amounts and offers have been related to this drop.62
(with Dunzo, Housejoy, and some also change weekly, monthly and
occupations on Urban Company seasonally, and at short notice: food Labour Insecurity
delivery workers are offered incentives
the exceptions) and were mainly
dependent on the platforms for their during festival seasons and cricket and Precarity in
livelihood. Further, the asset-light matches, but they also vary for less Working Conditions
business model of platforms shifts to predictable reasons such as the
the worker daily expenses like fuel platform’s expansion into new areas or The platform economy as it is currently
and maintenance costs, unexpected investor pressure to stop cash burn.57 structured offers workers no job
costs including traffic fines and towing At any given time, incentive offers also security in the longer term and this
charges, and fixed capital costs. It is vary based on the worker’s registered presents a fundamental precarity
against this backdrop that the nature geographical location within the in their work (conditions). But
of precarity in income for platform city. Furthermore, even at the same conversations with workers revealed
workers must be understood. location, and in the same time period, that they were not assured of a job
incentives may vary across workers even in the shorter term, with workers
20 | Fairwork India Ratings 2020
on some platforms, including Zomato, they are subsumed under the their delivery workers both directly69
Ola and Uber complaining that they “unorganised” label or an altogether and through labour contractors such as
had experienced temporary ID blocks new category). Such ambiguities add Blowhorn, Bikeninja and Shadowfax.70
and permanent suspensions without to the precarity of these workers’
the means to appeal these decisions. positions in the labour market. Critics A more recent phenomenon is of data
The growing automation and opacity of argue that the broader landscape of contractors such as Betterplace who
worker management systems further labour regulations in India and recent process worker data for platform
complicates the process of redressal shifts—especially the consolidation of companies. This raises additional
appeal.63 a range of labour laws into four labour concerns about the security and
codes which have been perceived by privacy of worker data. While the data
One of the benefits that is often labour unions and others as diluting collected by platforms from workers
associated with working on platforms existing provisions of these laws for is cause for concern even without
is the “flexibility.” It supposedly offers all workers—further reinforce this subcontracting, concerns about how
workers the ability to choose when precarity.67 worker data is collected, used, stored,
and how many hours they work for shared with or sold to third parties,
and when. While some of the workers
did mention this as an advantage, the
Lack of work-identity or how accessible it is to workers
themselves should they wish to port
interviews also drive home the point and precarity or transfer their work experience
that workers work unpredictable
and long hours to achieve an income
through contracting with other job providers, or check
the veracity of their data, are thrown
that can sustain them. Most workers In addition to the ambiguity of worker into sharper relief with the entry of
interviewed worked much longer classification brought up earlier, there subcontractors.71
than the legally permissible 48 hour- is a further issue around contracts
week (without overtime wages). that emerges for platform workers.
Moreover, these hours were not always Increasingly, components of the
predictable and could also involve long platform supply chain are being
periods of waiting between orders contracted out to entities outside of the
(for which they were not paid). Finally, platform company. Furthermore, these
not everyone had equal control over subcontracting models are still evolving
how long or when they worked. A (and rapidly so). Interviews and desk
female Swiggy worker pointed out that research suggest the prevalence of at
female workers on the platform were least two types of subcontracting: that
automatically logged out at 6:00 pm64 of labour and of data. “Most workers
based on the platform’s belief that this
would ensure their safety.65 Subcontracting of the first type is of interviewed worked
In addition to the long-term health
interest because it further increases
the distance between workers and the much longer
consequences66 of working such long
hours, workers are also faced with
platform, which has implications for
their working conditions, payment, and
than the legally
more immediate health concerns
arising out of accidents and physical
mechanisms of grievance redressal. permissible 48
A van driver for Amazon who worked
harm (including being mugged) during for a contractor said his insurance hour-week (without
the provision of services. The lack of
reliable insurance—and one that is
was determined by his contractor,
who decided not to provide it. A overtime wages).”
not restricted only to severe cases— Swiggy worker who worked through
compounds this issue as the Zomato Shadowfax68 said he was concerned
group interview in the previous section how to reach out to Shadowfax in case
indicated. he had issues with his order. In such
cases, it is also difficult to determine
The very location of platform
at what stage of the order a platform
companies within the Indian regulatory
hands off to subcontractors and
landscape is the reason for some of
whether the customer encounters
this precarity in workers’ conditions.
the platform’s brand or the
As mentioned earlier, it is unclear
subcontractor’s. Furthermore, platform
which laws and regulations cover
companies deploy many of these
platforms (technology only or domain
contracting models in parallel, further
regulations as well), and platform
complicating issues of accessibility
workers (independent contractors,
and accountability for workers. For
employees or self-employed; whether
instance, Amazon and Flipkart hire
Labour Standards in the Platform Economy | 21
Impact
and Next Steps
This report not only highlights the work It is to bring about change in the
conditions of work, that Fairwork
opportunities generated by the platform engages with platforms, consumers,
economy; it also highlights how the work government, platform workers and
their representatives.
is mostly characterised by low pay, poor Notwithstanding their claims to the
conditions, inequity, and a lack of agency contrary, platforms have substantial
control over the nature of the jobs that
and voice. But there is no basis for workers they mediate. The scores show that
the platform economy, as we know it
who find their jobs through platforms to currently, takes many forms, with some
be denied the key rights and protections platforms displaying greater concern
for workers’ needs than others. Thus,
that their counterparts in the formal sector there is nothing inevitable about the
working conditions in the platform
enjoy. economy. The Fairwork project—by
highlighting the contours of today’s
platform economy—helps paint a
picture of what it could become.
Fairwork
Principles
Changes to Principles
(agreed at annual Fairwork symposium that
brings together all country teams)
platform workers, irrespective of their mutual support,72 and through workers’ allies in the fight for a fairer
legal classification. emerging unions and organizing at the platform economy. The scores can
national level.73 Fairwork’s Principle also help inform the procurement,
Central to the Fairwork model are 5 in particular, which involves fair investment and partnership policies of
workers and workers’ representatives. representation for workers, is a means large organisations, including firms or
Through continual engagement of drawing attention to worker voice. resident welfare associations, keen to
with workers’ representatives and ensure they are supporting fair labour
advocates, Fairwork is committed Human empathy is a powerful force practices.
to support workers in asserting that Fairwork’s theory of change
their rights and requirements in a
collective way. A key challenge in the
draws on. Through the yearly ratings
the aim is to empower platform users
Fairwork in 2021
platform economy is that workers are with enough information to make Fairwork’s research thus far, has
often isolated, atomised, and placed informed decisions about which revealed at least two directions along
in competition with one another. platform they would like to give their which future work must proceed to
The platform work model presents business to. Consumers can use the better understand platform work.
challenges for workers to connect scores to choose the highest scoring First, as platforms modify their service
and create networks of solidarity. platform operating in a sector, thus offerings to respond to demands for
Despite this, many of the workers contributing to pressure on platforms profitability with shifting business
interviewed have started to organize, to improve their working conditions. conditions. The COVID-19 pandemic,
through WhatsApp groups to provide The scores enable consumers to be which has hastened the adoption of
Labour Standards in the Platform Economy | 23
some platform services by customers As this segmentation of gig workers and consumers are the immediate
over offline alternatives, while is continuously evolving, future work stakeholders in the platform economy,
diminishing others, is one instance of will attempt to focus on the ‘weakest- this economy is sustained by a larger
the shifting conditions. The pandemic, link’ i.e., on the more precarious work ecosystem: investors and venture
and the ensuing lockdowns, have arrangements within each platform capitalists, both foreign and domestic,
brought to the fore the precarity faced rather than on all platform workers. It freelancers and third-party firms that
by platform workers who provide will also require alternative approaches design and develop technologies for
essential (and invaluable) services. to identifying and interviewing workers, platform companies, data contractors
engaging with platform management, who store worker data for the
Among the various ways by which and perhaps even revisiting which platforms, and ‘man-power’ agencies
platforms respond to shifting platforms and sectors to study. that provide the workforce for these
business conditions is to rely on a platforms.74 Looking ahead, we hope to
range of work arrangements, from Second, research thus far has also identify, engage and influence actors
employees with benefits, to part time made evident that while platform upstream in the ecosystem as they are
piece-rate workers, to using workers management, policy makers and equally relevant in Fairwork’s vision for
provided by man-power agencies. government, workers and unions, a fairer world of work.
24 | Fairwork India Ratings 2020
Appendix I:
Fairwork Scoring
System
The five Principles of Fairwork were into two thresholds. Accordingly, for that point.
developed through an extensive each Principle, the scoring system
literature review of published research allows one ‘basic point’ to be awarded A platform can therefore receive a
on job quality, stakeholder meetings corresponding to the first threshold, maximum Fairwork Score of ten points.
at UNCTAD and the ILO in Geneva and an additional ‘advanced point’ Fairwork scores are updated on a
(involving platform operators, policy to be awarded corresponding to the yearly basis; the scores presented in
makers, trade unions, and academics), second threshold (see Table 1). The this report pertain to data gathered
and in-country stakeholder meetings advanced point under each Principle between November 2019 and
held in India (Bangalore and can only be awarded if the basic point November 2020. Worker interviews
Ahmedabad), South Africa (Cape Town for that Principle has been awarded. were conducted between November
and Johannesburg) and Germany The thresholds specify the evidence 2019 and February 2020, while
(Berlin). This appendix explains the required for a platform to receive desk research and engagement with
Fairwork scoring system. a given point. Where no verifiable platform managers continued upto
evidence is available that meets a given November 2020.
Each Fairwork Principle is divided threshold, the platform is not awarded
Fair Pay 1 + 1 = 2
Fair Conditions 1 + 1 = 2
Fair Contracts 1 + 1 = 2
Fair Management 1 + 1 = 2
Fair Representation 1 + 1 = 2
months.
platforms. It also relied on a tabulation
Threshold 1.2 – Pays the of worker earnings or payslips from the
minimum wage plus costs (one platform managements who provided
us evidence. The award of the basic
Principle 1: additional point)
point was based on whether workers’
Fair Pay Workers earn at least the local hourly earnings without costs met
minimum wage after work-related the (adapted) state minimum wage
Threshold 1.1 – Pays at least costs, or there is a policy which threshold. The award of the advanced
requires payment above this level. point depended on workers reaching
the local minimum wage (one
this figure after factoring in their
point) The threshold for the minimum wage costs.80 For both points, the study
plus costs varies between different used the Karnataka state floor level
Irrespective of the employment status
kinds of platform work. In order to daily minimum wage figures81 under
of the worker, workers earn at least
establish a threshold, the platform is the semi-skilled workers category
a local minimum wage, or there is a
asked to provide an estimate for work- (skilled category for Urban Company
policy which requires payment above
related costs, which are then checked and Housejoy workers). This number
this level.
(by the Fairwork team) through worker was multiplied by six (one rest day per
The threshold for 1.1 is based on the interviews.79 To be awarded this point, week) for the weekly minimum wage,
level for a local minimum wage.75 there must be either: and then divided by the weekly working
Workers on the platform must earn hours limit of 48 hours82 to arrive at an
• A policy that guarantees workers hourly minimum wage.83
more than the minimum wage rate in
earn at least the local minimum
their working time,76 and this can be
wage plus costs; or
evidenced by either:
• Evidence from the platform that
• A policy that guarantees the
workers earn at least the local
workers receive at least the local
minimum wage plus costs.
minimum wage in their working
time; or If the platform has completed Table 2,
Principle 2:
• The provision of summary
the mean weekly earnings minus the Fair Conditions
estimated work-related costs must be
statistics of transaction data.
above the local minimum wage (see Threshold 2.1 – Mitigates task-
In the case of (b), the platform is asked Table 2 below). specific risks (one point)
to submit a weekly earnings table (see
The evaluation of Fair Pay for the India There are policies to protect workers
Table 2) that averages worker earnings
scoring drew more specifically on from risks that arise from the processes
and worker hours for any three-month
the self-reported earnings obtained of work.
period over the previous twelve
through worker interviews for all
X to
Weekly earnings <X (X+(X/2)+1)77 to 2X >2X
(X+(X/2))
Note: X = the local minimum wage, calculated at 45 hours per week. This row is filled out by the Fairwork team, before
submitting it to the platform for completion.78
26 | Fairwork India Ratings 2020
This threshold requires the platform insurance schemes, training sessions • The contract is written in clear and
to ensure that there are safe working and equipment redesign from the three comprehensible language that
conditions, and that potential harms platforms that provided evidence, the worker could be expected to
are minimised.84 For 2.1, this means were used to arrive at these scores. understand; and,
identifying the task-specific risks Observations of training, safety and
for the worker when, for example, a orientation sessions in the offices • The contract is issued in the
vehicle is used, or there is interaction of two platforms were also relied language/languages spoken by
with customers. The specific practices on. For the basic point, examples workers on the platform; and,
leading to the awarding of this point of mitigating risks faced by workers,
• The contract is available for
may vary by the type of work and the such as by offering accident insurance,
workers to access at all times.
risks involved. safety gear and safety training paid for
and conducted by the platform, and
To be awarded a point for 2.1, the Threshold 3.2 – The contract
having an SOS button or emergency
platform must demonstrate that: helpline for workers, were considered.
genuinely reflects the nature of
For the advanced point, scores relied the employment relationship
• There are policies or practices in
on instances and policies that went (one additional point)
place that protect workers’ health
beyond task-specific risks such as
and safety from task-specific risks facilitating skill certifications, personal The party contracting with the worker
loans, comprehensive health insurance must be subject to local law and must
Threshold 2.2 – Actively for workers and redesigning equipment be identified in the contract. If workers
improves working conditions to accommodate worker needs. are genuinely self-employed, the terms
(one additional point) of service are free of clauses which
unreasonably exclude liability on the
There are proactive measures to part of the platform.
protect and promote the health and
safety of workers or improve working The threshold for 3.2 involves the
conditions. platforms demonstrating that the
Principle 3: contract issued to workers accurately
For 2.2, the threshold is higher, describes the relationship between
involving practices that go beyond Fair Contracts the platform, the workers, and the
addressing the task-specific risks users. In the case where there is an
addressed by 2.1. This means a Threshold 3.1 – Clear terms unresolved dispute over the nature of
policy that goes beyond ameliorating and conditions are available the employment relationship, a point
the direct task-specific risks, by (one point) will not be awarded.
promoting greater health and safety or
improvements in working conditions, The terms and conditions are To be awarded a point for 3.2, the
beyond what is specified by local transparent, concise, and provided to platform must demonstrate that:
regulations for employment. For workers in an accessible form.
• The employment status of the
example, an insurance policy that
The threshold for 3.1 involves workers is accurately defined
covers workplace accidents would
demonstrating that the terms and in the contract issued by the
meet the threshold for 2.1, while one
conditions of the contract issued to platform; and,
that also covers the worker or their
workers are available in an accessible
family outside of work would meet • There is no unresolved dispute
form.85 Platforms must demonstrate
2.2. As policies and practices may be about the nature of the
that the contracts are accessible
focused on the specific form of work, employment relationship; or,
for workers at all times, whether
the examples that meet the threshold
through the app itself or direct
may vary by the type of work. • The self-employed status
communication with the worker.
of the worker is adequately
To be awarded a point for 2.2, the This is necessary for workers to
demonstrated and free from
platform must demonstrate that: understand the requirements of their
unreasonable clauses.
work. The contracts should be easily
• There is a documented policy (or understandable by workers, and The Fairwork India scoring relied on
policies) that promotes the health available in the language/languages digital or hard copies of contracts
and safety of workers or improves commonly spoken by the workers on that workers showed the researchers,
working conditions, going beyond the platform. and copies of contracts provided by
addressing task-specific risks platform management. If a contract
To be awarded a point for 3.1, the
(or Terms and Conditions document
In the Indian case, interviews and platform must demonstrate all of the
or employment agreement) existed
observations of workers at work for all following:
and was made accessible, readable,
the platforms, and documentation of
Labour Standards in the Platform Economy | 27
and comprehensible to workers by the communicate with the platform; risk of users discriminating against
platform, a basic point was awarded. and, any group of workers in accessing
For the advanced point, the platform’s and carrying out work.
terms and conditions for all categories • The platform interface features
of workers were analysed to assess if a process for workers to appeal In the India case, points for this
they genuinely reflect the nature of the disciplinary decisions or principle were awarded based on
employment relationship and that they deactivations; and, worker interviews supplemented
do not have clauses that unreasonably by documentation on available
• In the case of deactivations, the communication channels, grievance
excluded liability on the part of the
appeals process must be available redressal and appeals processes to
platform.
to workers who no longer have restore deactivated IDs, the platform
access to the platform. company’s sexual harassment
and zero tolerance discrimination
Threshold 4.2 – There is equity policies, and details of inclusion
in the management process initiatives provided by the platform
(one additional point) managements mentioned earlier. Focus
Principle 4: Group Discussions among workers
There is evidence that the platform
Fair Management is actively seeking to prevent
at an Urban Company office were
also observed in order to score this
discrimination against workers from principle.
Threshold 4.1 – There is due disadvantaged groups.
process for decisions affecting
workers (one point) To be awarded a point for 4.2 the
platform must demonstrate the
There is a documented process following:
through which workers can be heard,
can appeal decisions affecting them, • It has a policy which guarantees Principle 5:
and be informed of the reasons that it will not discriminate against
persons on the grounds of race,
Fair Representation
behind those decisions. There is a
clear channel of communication to gender, sex, sexual orientation, Threshold 5.1 – There are
workers involving the ability to appeal gender identity, disability, religion
worker voice mechanisms and
management decisions or deactivation. or belief, age or any other status
which is protected against freedom of association (one
The threshold for 4.1 involves a discrimination in local law; and, point)
platform demonstrating the existence
of clearly defined processes for • Where persons from a There is a documented process through
communication between workers and disadvantaged group (such as which worker voice can be expressed.
the platform. This includes access by women) are significantly under- There is no evidence of freedom of
workers to a platform representative, represented among its workers, it association being prevented by the
and the ability to discuss decisions has a plan to identify and remove platform. There is no evidence that
made about the worker. Platforms must barriers to access by persons from platforms refuse to communicate with
be able to evidence that information that group, resulting in improved designated representatives of workers.
about the processes is also easily representation; and
The first step for the justification of 5.1
accessible to workers.
• It takes practical measures to is establishing the platform’s attitude
To be awarded a point for 4.1, the promote equality of opportunity towards and engagement with workers’
platform must demonstrate all of the for workers from disadvantaged voice. This includes both listening to
following: groups, including reasonable and responding to worker voice when
accommodation for pregnancy, raised with the platform, as well as
• The contract includes a disability, and religion or belief; documenting for workers the process
documented channel for workers and for engaging the platform in dialogue.
to communicate with a designated Workers should be able to organise and
representative of the platform; and, • If algorithms are used to associate with one another, regardless
determine access to work of employment status. Workers must
• The contract includes a or remuneration, these are not suffer discrimination for doing so.
documented process for workers transparent and do not result in This includes the freedom to associate
to appeal disciplinary decisions or inequitable outcomes for workers beyond the remit of organisational
deactivations; and, from historically or currently spaces (for example, via instant
disadvantaged groups; and messaging applications).86
• The platform interface features
a channel for workers to • It has mechanisms to reduce the To be awarded a point for 5.1, a
28 | Fairwork India Ratings 2020
platform must demonstrate that: This threshold requires the platform to representation or bargaining;
engage with, or be prepared to engage
• There is a documented process for with, collective bodies of workers If such a body does not exist, it must:
the expression of worker voice. that could take part in collective
• Sign a public statement of
representation or bargaining. The
Threshold 5.2 – There is a collective body must be independent
its willingness to recognise a
collective body of workers collective body of workers or trade
of the platform. It may be an official
union.
that is recognised, and that trade union, or alternatively a network
can undertake collective or association of workers. Where such For this principle, the India report
representation and bargaining organisations do not exist, the platform relied on desk research for evidence
can sign a public statement to indicate of platforms curbing workers’ freedom
(one additional point)
that they support the formation of a to associate in addition to accounts
There is a collective body of workers collective body. from worker interviews. Documented
that is publicly recognised and the processes/channels that enable worker
To be awarded a point for 5.2, the
platform is prepared to cooperate voice (like Urban Company’s Focus
platform must:
with collective representation and Group Discussions) and formation of
bargaining (or publicly commits to • Publicly recognise an independent, collectives, and platform evidence
recognise a collective body where none collective body of workers or suggesting public recognition of a
yet exists) trade union and not have refused workers’ collective body, were also
to participate in collective used as evidence.
Labour Standards in the Platform Economy | 29
Appendix II:
Identifying Platforms
and Workers
The top twelve platforms that provided workers. Finally, inputs from secondary Workers on ride-hailing and food
location-based platform work in India sources such as news articles, reports, delivery platforms were identified
in 2020 were identified based on the and academic publications were in public spaces and recruited after
size of their workforce, customer base added. explaining the study and securing
and investment. During the course of their consent to participate. Food-
the study, Uber Eats was acquired by A decision was made to not rely delivery platform workers were also
Zomato, and therefore removed from on platforms to access workers in covered by identifying restaurants
the study. For each of the remaining order to avoid any harm to potential with high delivery volumes. As workers
eleven platforms, worker interviews participants or biased responses. on domestic service and hub-based
were conducted, platform evidence The study was advertised in worker delivery platforms were harder to
was sought, and secondary research WhatsApp groups, where available, reach, participants were recruited by
carried out. after securing the consent of the group placing orders for services / goods
owners. Only workers who expressed from addresses that researchers had
Worker interviews were conducted an interest in participating in the access to. Once the transaction was
with six to ten participants for each of research were recruited. complete, and ratings were provided,
the eleven platforms, through fieldwork workers were asked if they would
undertaken in Bangalore between Efforts were made to capture as much
participate in the study. Workers were
November 2019 - March 2020. The variety among workers as possible. For
also recruited at check-in points in
goal of the interviews was to build an the domestic service platforms, the aim
offices and apartment complexes that
understanding of the conditions of was to cover the top four occupations
the researchers had access to. Female
work in the platform economy. In total, on the platform. Similarly, for ride-
beauty workers were interviewed
113 workers were interviewed in a hailing platforms a minimum number of
by a female researcher since these
total of 92 interviews, with interviews auto rickshaw drivers (two), along with
platforms provide same-sex services
ranging between 15 to 90 minutes. a variety of cab categories (hatchback,
only.
Most were conducted by two research sedan, SUV), were included. Where
assistants with input from other team possible, attempts were made to speak Participants in the study (except for
members. In parallel, platforms were to under-represented groups, such those participating in group interviews)
contacted for evidence on conditions of as women in the delivery and ride- were compensated with either a gift
work, including data on their workers, hailing sectors. Unfortunately, it was card, monetarily, or by purchasing
and examples of management action not possible to capture all variations additional services as suggested by the
across the principles. These include of work; for example, part-time participants. Three participants refused
cases of intervention when there is workers who only worked at night, or compensation.
discrimination, helping workers file exclusively on the weekends, on the
insurance claims, setting up training food delivery platforms Swiggy and
programs, and holding meetings with Zomato, were not included.
30 | Fairwork India Ratings 2020
Appendix III:
Estimates of Platform
Workers
Pan-India estimates of platform workers and employees87
Pl at for m Pl at fo rm E mp l oye e s S o ur ces 8 8
Nam e Wor ke rs
Ola and 2,200,000 Ola: 4,150 https://inc42.com/buzz/jobs-are-being-created-ola-uber-added-2-2-mn-
Uber (2019) Uber: 2,400 jobs-niti-aayog-ceo-kant/
https://www.livemint.com/companies/start-ups/ola-to-fire-1-400-
employees-as-revenue-down-by-95-in-2-months-11589961627720.html
https://www.business-standard.com/article/companies/uber-trims-a-quarter-
of-its-india-workforce-lays-off-600-employees-120052600120_1.html
Swiggy 250,000 10,000 https://www.livemint.com/companies/start-ups/swiggy-raises-43-million-to-
(2019) expand-new-businesses-11586170828417.html
https://careers.swiggy.com/
Zomato 230,000 4,000 https://twitter.com/deepigoyal/status/1169552564184113153?lang=en
(2019)
https://www.business-standard.com/article/companies/covid-
19-impact-zomato-to-cut-13-jobs-asks-for-organisation-wide-
paycuts-120051500765_1.html
Flipkart 120,000# 36,000 https://www.owler.com/company/flipkart?pendo=kUUes6C7jD_
(Ekart) rqETPliseSRbPjmA
Amazon 100,000#* 50,000 The expectation is that Amazon will have at least 100,000 workers since
(ATS) (2018) its market share nearly equals that of Flipkart https://www.spglobal.com/
marketintelligence/en/news-insights/latest-news-headlines/flipkart-is-no-1-
in-india-but-faces-formidable-foe-in-amazon-say-experts-54083920
https://www.thehindubusinessline.com/info-tech/amazon-india-to-hire-over-
2000-people-for-tech-and-non-tech-roles/article25624631.ece
Housejoy 65,000 350 https://www.housejoy.in/
https://www.owler.com/company/housejoy
Urban 25,000 1,300 https://www.urbancompany.com/about
Company
https://craft.co/urbanclap
Labour Standards in the Platform Economy | 31
Grofers 12,600* 3,400 Using daily order volume of 190,000 and assuming 15 orders delivered per worker
https://economictimes.indiatimes.com/small-biz/startups/newsbuzz/e-grocers-
like-bigbasket-grofers-others-surge-ahead-on-deliveries/articleshow/75284089.
cms?from=mdr
https://craft.co/grofers
TOTA L 3.03
M i llion
Notes:
# Flipkart (Ekart) and Amazon (ATS) estimates includes workers across the supply chain.
* Approximations used for Amazon (ATS), Bigbasket and Grofers.
32 | Fairwork India Ratings 2020
Appendix IV:
Funds Raised by
Platforms
Pl at for m Co mp any Name Fun ds Ra i s e d 8 9 , 2013-
2019
(U SD bi lli on )
Flipkart Flipkart Internet Private Limited 7.09
Instakart Services Private Limited
Ola ANI Technologies Private Limited 3.60
Total 14.82
Note: Amazon and Uber have been excluded since their Indian operations are funded internally.
The table below shows the cumulative funds raised by nine platforms between 2013 and 2019. The nine platforms included are
Bigbasket, Dunzo, Grofers, Housejoy, Ola, Swiggy, Urban Company, Zomato.90 Amazon and Uber have been excluded since their
Indian operations are funded internally.
Ye ar C umul at i ve Fun ds Ra i s e d
by 9 p l at fo r m s
( US D B i l l i o n )
2013 0.42
2014 2.25
2015 2.06
2016 0.2
2017 6.21
2018 2.4
2019 1.27
Labour Standards in the Platform Economy | 33
Appendix V:
Additional Resources
Additional Resources on platform work in India
1. Aneja, U. and Shridhar, A. 2019. Worker Wellbeing on Digital Work Platforms in India: A Study of OlaCabs and UrbanClap in
New Delhi. Tandem Research. https://tandemresearch.org/assets/Worker-Wellbeing-Tandem-Research-2019.pdf
2. Anwar, I. A., Pal, J. and Hui, J. 2020. Watched, but Moving: Platformization of Beauty Work and Its Gendered Mechanisms
of Control. Computer Supported Collaborative Work. https://www.microsoft.com/en-us/research/publication/watched-but-
moving-platformization-of-beauty-work-and-its-gendered-mechanisms-of-control/
3. Biswas, R. and Pahwa, A. 2015. ‘Foreword.’ The Rise of the Sharing Economy: The Indian Landscape. NASSCOM and Ernst &
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Labour Economics. 63, 511–524. https://doi.org/10.1007/s41027-020-00231-8
10. Surie, A. and Koduganti, J. 2016. The Emerging Nature of Work in Platform Economy Companies in Bengaluru, India: The
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https://www.ilo.org/newdelhi/whatwedo/publications/WCMS_631296/lang--en/index.htm
34 | Fairwork India Ratings 2020
Credits and
Funding
Fairwork draws on the expertise and experience Janaki Srinivasan, Shelly Steward, Sophie Sun, Finally, we are grateful to all the workers who
of staff at the International Institute of Pradyumna Taduri, Pitso Tsibolane, Anna Tsui, took time off their schedules to share their
Information Technology Bangalore (IIITB), Funda Ustek-Spilda, Jean-Paul Van Belle, Zoya experiences with us. We are also pleased to
the University of Oxford, the University of Waheed, Jing Wang, Robbie Warin, Nadine have worked with managers at Dunzo, Flipkart,
Cape Town, the American University of Cairo, Weheba, Zermina. Urban Company and Uber and look forward to
the Centre for Labour Research, the Chinese continuing our engagement with them.
University of Hong Kong, FLACSO-Ecuador, Please cite as: Fairwork. (2020). Fairwork
iSocial, Tu Wien, Universitas Gadjah Mada, India Ratings 2020: Labour Standards in the Conflict of interest statement: None of the
Universidad Adolfo Ibáñez, the University Gig Economy. Bangalore, India; Oxford, United researchers have any connection with any of the
of Manchester, the Technical University of Kingdom. platforms and the work undertaken received no
Berlin, the University of the Western Cape, funding or support in kind from any platform or
Please note that this report contains sections in any other company, and we declare that that
Weizenbaum Institut, WZB Berlin Social
common with other Fairwork reports, notably the there is no conflict of interest.
Science Center, and XU Exponential University.
Fairwork Framework section, parts of the Impact
Project staff work to translate the Fairwork
and Next Steps section, and part of Appendix I.
Principles into measurable thresholds, conduct
rigorous research to score platforms against
A collaboration
Creative Design: Srujana Katta; original
those thresholds, and publish the results in a templates from One Ltd., Oxford. between:
transparent manner.
Funders: Fairwork is financed by the Federal
Authors: Balaji Parthasarathy, Janaki Srinivasan, Ministry for Economic Cooperation and
Mounika Neerukonda, Pradyumna Taduri, Funda Development (BMZ), commissioned by the
Ustek-Spilda, Aradhana Cherupara Vadekkethil, Deutsche Gesellschaft für Internationale
Mark Graham, Richard Heeks. Zusammenarbeit (GIZ).
Fairwork Team: Daniel Abs, Iftikhar Ahmad, Special Thanks to: John Gilbert, Eve Henshaw,
María Belen Albornoz, Moritz Altenried, Branka Katia Padvalkava, Duncan Passey, Sharron
Andjelkovic, Paula Alves, Arturo Arriagada, Pleydell-Pearce, Ornella Sciuoto, and David
Amri Asmara, Priashish Basak, Alessio Sutcliffe at the University of Oxford for their
Bertolini, Gautam Bhatia, Richard Boateng, extensive administrative support for the
Manuela Bojadzijev, Macarena Bonhomme, project since its inception. The project would
Maren Borkert, Rodrigo Carelli, Henry Chávez, additionally like to thank Sarah Fischer, Elisabeth
Tat Chor Au-Yeung, Aradhana Cherupara Hobl, Mortiz Hunger, Shakhlo Kakharova, Bjoern
Vadekkethil, Matthew Cole, Paska Darmawan, Richter, and Kathleen Ziemann at GIZ for their
Darcy du Toit, Trevilliana Eka Putri, Fabian wide-ranging and crucial support throughout the
Ferrari, Sandra Fredman, Mark Graham, Rafael life of the project.
Grohman, Khadiga Hassan, Richard Heeks,
Kelle Howson, Francisco Ibáñez, Svitlana IIITB provided the ideal home for the project.
Iukhymovych, Vladan Ivanovic, Tanja Jakobi, Thanks to the Director, Professor S Sadagopan,
Athar Jameel, Hannah Johnston, Zoran Kalinic, the Dean (Academics), Professor Chandashekar
Srujana Katta, Chris King Chi Chan, Maja Kovac, Ramanathan, the Registrar, S R Sridhar, for their
Martin Krzywdzinski, Larry Kwan, Jorge Leyton, unfailing support in various ways. We are also Funder:
Shabana Malik, Évilin Matos, Paul Mungai, grateful to the Institute’s finance team, and BNA
Tasnim Mustaque, Mounika Neerukonda, Sidra Technology Consulting Bangalore (in particular
Nizamuddin, Sanna Ojanperä, Abigail Osiki, to Milind Priolkar), for administrative support. A
Amelinda Pandu, Balaji Parthasarathy, Leonhard special word of thanks to faculty colleagues and
Plank, Jack Qui, Ljubivoje Radonjić, Ananya researchers at IIITB’s Center for Information
Raihan, Pablo Aguera Reneses, Nagla Rizk, Technology and Public Policy (CITAPP) for
Nancy Salem, Julice Salvagni, Derly Yohanna providing a stimulating intellectual environment.
Sánchez Vargas, Murali Shanmugavelan,
Labour Standards in the Platform Economy | 35
Endnotes
1. Cusumano, M.A., Gawer, A. and Yoffie, conduct interviews in three Indian cities See, Majid, N. 2019. Stuctural Change
D.B. 2019. The Business of Platforms: -- Bangalore in southern India, Mumbai in and Employment in India. ILO-SIDA
Strategy in the Age of Digital Competition, the west and Delhi in the north -- had to Partnership on Employment Working
Innovation, and Power. New York, NY: be reformulated in the wake of COVID-19 Paper No.1. Geneva, CH: International
Harper Collins. p.13. and a nationwide lockdown by March Labour Organization (ILO), p.13. Accessed
2020 which made it challenging to carry on 16 November from https://www.ilo.
2. Scholz, T. 2016. Platform Cooperativism: out fieldwork without undue risk to org/wcmsp5/groups/public/---ed_emp/
Challenging the Corporate Sharing participants and researchers. documents/publication/wcms_735166.
Economy. New York, NY: Rosa Luxemburg pdf. Productivity in construction was INR
Stiftung. 9. Sharma, Y.S. and Suneja, K. 2019. 126,560 in 2106 (Bhattacharya, 2018)
Professional bodies and gig economy and, in 2005, only 14.4 percent of its
3. Youth unemployment is a particularly players to file data on jobs: Govt to
pressing concern. Of the world’s 1.2 workforce had a secondary education
notify framework for collating data. (Amirapu and Subramanian, 2015).
billion people between the ages of 15 Economic Times. 13 August. Accessed
and 24, 87 percent are to be found in on 16 November from https:// 18. In 2012, 51.6 percent of net value-
the Global South, two thirds of whom economictimes.indiatimes.com/jobs/ added in the economy was in urban
are either unemployed or “trapped in professional-bodies-and-gig-economy- areas although they were home to only
low quality jobs”. World Bank. 2015. The players-to-file-data-on-jobs-govt-to- 31.6 percent of the population. https://
Global Opportunity in Online Outsourcing. notify-framework-for-collating-data/ databank.worldbank.org/source/world-
Washington, DC: The World Bank. p.46 articleshow/70651772.cms?utm_ development-indicators
4. Berg, J., Furrer, M., Harmon, E., Rani, source=contentofinterest&utm_
medium=text&utm_campaign=cppst 19. Tumbe, C. 2016. Urbanisation,
U. and Silberman, M.S. 2018. Digital Demographic Transition, and the Growth of
Labour Platforms and the Future of Work: 10. For more on how platforms performed Cities in India, 1870-2020. International
Towards Decent Work in the Online World. during the pandemic, see Fairwork. Growth Centre Working Paper C-35205-
Geneva, Switzerland: International Labour 2020. The Gig Economy and Covid-19: INC-1. Accessed on 1 November from
Organization. Looking Ahead. Oxford, United Kingdom. https://www.theigc.org/wp-content/
5. Standing, G. 2011. The Precariat: The New https://fair.work/wp-content/uploads/ uploads/2016/11/Tumbe-2016-Working-
Dangerous Class. London, UK: Bloomsbury sites/97/2020/09/COVID-19-Report- paper.pdf.
Academic. September-2020.pdf
20. Bell, T., Adam, J.A. and Lowe, S. J.
6. The initial plan was to conduct worker 11. Data accessed on 16 November from 1996. Communications. IEEE Spectrum.
interviews in Mumbai and Delhi in https://databank.worldbank.org/source/ 33(1):30-41.
addition to Bangalore. But due to the world-development-indicators
21. Department of Telecommunications (DoT).
onset of COVID-19, in March 2020, it 12. Construction generated the most jobs in 2018. Telecom Statistics India – 2018.
was reformulated to include only the this period (35.74 percent). Bhattacharya, Ministry of Communications, Government
completed interviews from Bangalore. P. 2018. Which are the top sectors that of India. https://dot.gov.in/sites/default/
7. To view the scorecard for each platform generate employment in India? Livemint. files/statistical percent20Bulletin-2018.
please visit: https://fair.work/ratings/. 12 April. Accessed on 16 November pdf?download=1
Note that this year’s scores cannot be from https://www.livemint.com/
Politics/7XXmUWyxkSEGKoWXJqUuHM/ 22. Raman, A. 2020. The Power of Two
directly compared with last year’s scores Wheels. Bike-Taxi: India’s New Shared
since the scoring process and thresholds Which-are-the-top-sectors-that-
generate-employment-in-India.html Mobility Frontier. Ola Mobility Institute.
have changed between 2019 and 2020. Accessed on 16 November from https://
8. The initial plan was to include worker 13. Data accessed on 16 November from olawebcdn.com/ola-institute/bike-taxi-
interviews and evidence focused on https://databank.worldbank.org/source/ report.pdf
eleven platforms that were available world-development-indicators
23. Kundu, T. and Bhattacharya, P. 2018.
and popular in three metropolitan 14. Amirapu, A. and Subramanian, A. 2015. India runs on two wheels and animal
areas in different parts of India. The Manufacturing or Services? An Indian carts, data shows. Livemint. 8 August.
focus on cities in different regions was Illustration of a Development Dilemma. Accessed on 16 November from
to account for variations in demand Working Paper 409. Washington DC: https://www.livemint.com/Auto/
and supply of services on the chosen Center for Global Development. Accessed N3Ixh0Mv3eu2vWfzeiRw3N/ India-runs-
platforms across the country. The focus on 1 November from https://www.cgdev. on-two-wheels-and-animal-carts-data-
on metropolitan cities was because org/publication/manufacturing-or- shows.html
they are home to a large proportion of services-indian-illustration-development-
the growing Indian platform economy. dilemma-working-paper-409. 24. Although most platforms are yet to show
See Rao, M.M. 2019. The ‘gig’ economy a profit, their ability to attract investments
is creating lakhs of jobs, but workers 15. Bhattacharya (2018). op.cit. is explained not merely by the returns
don’t see a future. The Hindu. 30 August. from service provision but also by the
Accessed on 16 November from https:// 16. Amirapu and Subramanian (2015), op.cit. potential value of digital data that is
www.thehindu.com/business/Economy/ 17. It is suggested that, “construction generated “before, during, and after
the-gig-economy-is-creating-lakhs-of- is becoming a refuge employment service provision”. See van Doorn, N. and
jobs-but-workers-dont-see-a-future/ sector as its productivity declines.” Badger, A. 2020. Platform capitalism’s
article29299673.ece. The plan to hidden abode: Producing data assets in
36 | Fairwork India Ratings 2020
the gig economy. Antipode 52(5):1475- 31. Ms Ayantika Mondal v State of introduced and passed by Parliament.
1495. Karnataka WP 6757/2020 (High Court PRS. n.d. The Code on Social Security,
of Karnataka). Also see Raj, A. 2020. 2020. PRS Legislative Research. https://
25. Sheth, A., and Krishnan, T.S. 2020. Scarce work, irregular earnings: drivers, www.prsindia.org/billtrack/code-social-
Venture capital investments in India. delivery agents struggle. The Quint. 12 security-2020
India Venture Capital Report 2020: May. Accessed on 16 November from
Perspectives on the Funding and Start-up https://www.thequint.com/news/india/ 37. This Code seeks to replace nine laws
Ecosystem. Bain & Company. Accessed karnataka-gig-economy-scarce-work- related to social security, including the
on 16 November from https://www.bain. irregular-earnings-drivers-delivery- Employees’ Provident Fund Act, 1952,
com/insights/india-venture-capital- agents-struggle the Maternity Benefit Act, 1961, and the
report-2020/. Unorganised Workers’ Social Security Act,
32. It is worth noting that existing laws, 2008. Social security refers to measures
26. “The unorganised sector [economy] such as those on minimum wages and to ensure access to health care and
consists of all unincorporated private maternity benefits, do not apply to most provision of income security to workers.
enterprises owned by individuals or segments of the Indian labour force, and Although this Code seeks to extend social
households engaged in the sale and not just to platform workers. Additionally, security benefits to platform workers/
production of goods and services in the wake of COVID-19, the large-scale workers in the gig economy, it only
operated on a proprietary or partnership migration of workers to their home states recognises them in the context of social
basis and with less than ten total and the scarcity of workers in urban security, leaving them outside protections
workers.” Thus, the organised economy is areas, various Indian states announced related to occupational health and
anything that the unorganised economy that they would relax labour laws, as safety, wages and industrial relations.
is not. See, the National Commission they pertain to either working hours, or The Code and the draft rules proposed
of Enterprises in the Unorganised the monitoring of working conditions for to operationalise it indicate that platform
Sector (NCEUS). 2009. The Challenge various labour segments and sectors companies will be required to make a
of Employment in India: An Informal of work, in order to grow employment. contribution to workers’ social security
Economy Perspective. Volume I – Main Many of these announcements have since funds. See PRS. n.d. The Code on Social
Report. Accessed on 1 November from been withdrawn following domestic and Security, 2020. PRS Legislative Research.
http://dcmsme.gov.in/The_Challenge_of_ international pressure, but others have https://www.prsindia.org/billtrack/code-
employment_in_India.pdf. New Delhi: been operationalised. See for instance, social-security-2020 and Government of
NCEUS, p.3. The Hindu. 2020. Major rehaul of labour India. 2020. Draft of the Code on Social
27. The share of the organised sector in total laws in Karnataka. 23 July. Accessed on Security(Central) Rules. 2020. Ministry of
employment barely increased from 10.3 16 November from https://www.thehindu. Labour and Employment. https://labour.
percent to 13.9 percent between 2000 com/news/national/karnataka/major- gov.in/whatsnew/draft-code-social-
and 2012. Majid (2019), op.cit. rehaul-of-labour-laws-in-karnataka/ securitycentral-rules-2020
article32176633.ece).
28. The distinction here is between regular 38. Labour laws are legislated both centrally
paid employment and non-regular 33. Bapna, N. and Saxena, A. 2017. Getting and by states in India.
employment. Regular paid employment Ola and Uber drivers out of the regulatory
grey zone. The Wire. 21 March. Accessed 39. For an example of how existing statutory
has some social security or contractual and common law can be interpreted to
protection associated with it, while on 16 November from https://thewire.
in/business/uber-ola-drivers-classified- provide basic rights for platform workers,
regular paid (non-protected) employment see Fairwork. (2020). Code of Good
has no such security or protection. Non- consumers
Practice for The Regulation of Platform
regular employment includes casual 34. Even if platform workers are to be treated Work in South Africa. Cape Town,
employment and self-employment. An as independent contractors, there is Western Cape; Oxford, United Kingdom.
organised economy has both regular and scope for some legal coverage under the
non-regular labour, while an unorganised Contract Labour Act, given the definition 40. The Hindu. 2019. Government to ensure
economy is dominated by non-regular of “contractor” under section 2(c) of the labour benefits for gig economy workers.
labour. See, Majid (2019), op.cit. Act. ‘Contract Labour (Regulations & 21 October. Accessed on 16 November
Abolition) Act, 1970’. n.d. Chief Labour from https://www.thehindu.com/news/
29. Uber has argued that it is “only a provider cities/bangalore/government-to-ensure-
of a technology platform to be used Commissioner. https://clc.gov.in/clc/
acts-rules/contract-labour-regulation- labour-benefits-for-gig-economy-
by drivers to offer their services to workers/article29760222.ece
passengers and not a rental taxi provider abolition-act-1970. This Act regulates
or an agency in the sense defined by the engagement of contract labour, 41. Most recently, the Code on Social Security,
the Motor Vehicles Act.” Johnson. T. A. including work done through third party 2020 considers platform companies as
2016. New Karnataka rules ‘against tech’, contractors. But platforms do not seem “aggregators” -- a digital intermediary
says Uber India. The Indian Express. 6 to be applying this law. See Rajkumar, that connects users of a service with
July. Accessed on 16 November from M. 2020. The law for gig-workers in sellers or service providers -- and lists
https://indianexpress.com/article/ India. Nyaaya. 28 April. Accessed on 16 nine categories of aggregators, including
technology/tech-news-technology/new- November from https://medium.com/ “ride sharing services”, “food and grocery
karnataka-rules-against-tech-says-uber- nyaaya/the-law-for-gig-workers-in-india- delivery services”, “logistic services”,
india-2902392/ 4163cfaee18b “e-market place”, and “professional
35. The other three Codes are the Code of services provider.” See section 2(2) and
30. Press Trust of India. 2017. HC asks The Seventh Schedule of ‘The Code on
striking drivers of Ola and Uber to end Wages Act 2019, Industrial Relations
Code Code 2020, and the Occupational Social Security, 2020’. 29 September.
stir. The Economic Times. 28 February. Ministry of Law and Justice.
Accessed on 16 November from https:// Health, Safety and Working Conditions
economictimes.indiatimes.com/news/ Code 2020. 42. See Satish N vs State Of Karnataka WP
politics-and-nation/hc-asks-striking- 36. In September 2020, the Code of Social No.30917/2016 (High Court of Karnataka)
drivers-of-ola-and-uber-to-end-stir/ Security Bill 2019 was withdrawn, where it is argued that an aggregator like
articleshow/57393991.cms and the Code of Social Security 2020 Uber “merely creates a technology-based
platform.” Even in official government
Labour Standards in the Platform Economy | 37
documents, companies declare their Technology Act 2000. MEITY. https:// by customers or the platform.
activities in somewhat ambiguous terms. www.meity.gov.in/content/information-
For instance, the Altered Memorandum technology-act-2000 and PRS. n.d. The 56. The Gig Lane, a game based on food
of Association (April, 2020) of Bundl Personal Data Protection Bill, 2019. delivery work in Bangalore, highlights the
Technologies (Swiggy) includes the PRS Legislative Research. https://www. significance of incentives: https://www.
objective of carrying on “the business prsindia.org/billtrack/personal-data- thegiglane.com/
or profession of providing a platform... protection-bill-2019 57. Medappa,K; Ray, R; and Hussain, M.S.
to facilitate transactions, commerce, 2020. Confronting precarious work.
electronic commerce...”. It further states 47. Changes to regulatory frameworks are
being debated in several domains of Beyond social security for platform
that the aim is to “provide, develop, workers. The India Forum. November
establish, run, manage, operate courier activity in India, especially those shaped
by the introduction of ICTs, and not just 6. Accessed on 16 November from
services or logistics services and https://www.theindiaforum.in/article/
manifestation for collecting and delivering the platform economy. The division of
labour and distribution of accountability confronting-precarious-work
whether by own arrangements, engaging
third parties or through agents...” It is among various regulatory authorities 58. The opacity in how jobs are allocated,
therefore not unreasonable to interpret are a key component of this debate. and incentives are determined, makes it
Swiggy as not just a technology company See Kapur, D and Khosla, M. 2019. The difficult to pinpoint the reason for these
but as a logistics services company reality of regulation in India .In Kapur, variations. The report relies largely on
managing the end-to-end courier process D and Khosla, M. (eds.), Regulation in our interviews and secondary literature
including the workers themselves. India: Design, Capacity, Performance. to identify the factors that seem to
New Delhi: Hart Publishing. However, matter. Workers have also tried to figure
43. For recent directives, see Food Safety platform services present an additional out some of these variations. As an Ola
and Standards Authority of India. 2018. layer of complexity because their driver explained to us, he and his friends,
Direction relating to FSS (Licensing and “users” include both service providers with whom he is in touch via Whatsapp
Registration) regulations. FSSAI. https:// and end-consumers, which multiplies groups, observed that Ola tended to
fssai.gov.in/dam/jcr:9a216a62-f67c- their regulatory requirements and the stop allocating rides to drivers who were
4ba1-93e4-9ba1ec749ca3/Direction_ regulatory entities that are involved. nearing their respective incentive targets.
License_Registration_13_12_2018.pdf This driver said he had experienced this
48. On platforms such as Amazon, Bigbasket,
44. Motor Vehicle (Amendment) Act, Flipkart and Grofers that have large supply often and stopped receiving rides typically
2019, s. 93 r/w s.1A (‘definition of chains, the focus was limited to last-mile when he was just a couple of rides short
aggregator’). http://egazette.nic.in/ delivery workers. of his target.
WriteReadData/2019/210413.pdf 59. See Olacabs. n.d. Smarter, faster and
49. Project Vividithva was introduced in
45. These guidelines have several 2019 to employ more women in the better with the Ola app. Olacabs Blog.
implications for drivers, including a cap last-mile infrastructure, specifically Accessed on 16 November from https://
of 20% aggregator commission per trip, as wishmasters. Flipkart also recruits blog.olacabs.com/smarter-faster-and-
limiting login hours to 12 hours at a interpreters to train the differently abled. better-with-the-ola-app/ and Mohan,
stretch followed by 10 hours of rest and R. 2013. Uber enters India; rolls out
10% cancellation charge for both driver 50. Fieldwork showed that workers formed first in Bangalore. Yourstory. 30 August.
and passenger. See Sections 13(4), 7(2) their own Whatsapp groups to share Accessed on 16 November from https://
d, 14(1) of the Motor Vehicle Aggregator concerns, seek help, and mobilise around yourstory.com/2013/08/uber-enters-
Guidelines, 2020. http://morth.nic. demands to be placed to the platform india-rolls-out-first-in-bangalore
in/sites/default/files/notifications_ management.
60. Vignesh, J. and Bansal, V. 2017. Uber,
document/Motor%20Vehicle%20 51. See also Chatterjee, S. 2019. Several Ola drivers hit hard by falling incentives.
Aggregators27112020150046.pdf Even Zomato delivery execs in Bengaluru The Economic Times. 25 January.
before the issue of these guidelines, suspended after protest on pay structure. Accessed on 16 November from https://
there has been regulation by states. For The News Minute, 18 September. economictimes.indiatimes.com/small-biz/
example, the Karnataka On-demand Accessed on 16 November from startups/uber-ola-drivers-hit-hard-by-
Transportation Technology Rule 2016 https://www.thenewsminute.com/ falling-incentives/articleshow/56766997.
capped surge pricing of app-based taxi article/several-zomato-delivery-execs- cms?from=mdr
aggregators to ensure minimum earnings bengaluru-suspended-after-protest-pay-
for non app-based cab drivers, and to structure-109095 61. Menezes, N. 2019. Zomato delivery
protect consumers. Yadav, U. and Variar, executives up in arms against incentive
M. 2016. Uber ordered to limit surge 52. See clause 10.2.iv.j of the Zomato delivery cuts. The Economic Times. 17 September.
pricing, comply with Karnataka rules for agreement available at https://www.runnr. Accessed on 16 November from https://
taxi aggregators. The Economic Times, 11 in/delivery-partner-tandc.html (accessed economictimes.indiatimes.com/
November. Accessed on 16 November on 16 November). small-biz/startups/newsbuzz/zomato-
from https://economictimes.indiatimes. delivery-executives-up-in-arms-against-
53. Although Urban Company provides loans incentive-cuts/articleshow/71161229.
com/small-biz/startups/uber-ordered- to its partners, it charges an interest rate
to-limit-surge-pricing-comply-with- cms?from=mdr
on them that may vary between 18.5 and
karnataka-rules-for-taxi-aggregators/ 23.2 percent. 62. For examples, refer or: Press Trust
articleshow/55364437.cms of India. 2017. Uber, Ola drivers in
54. Urban Company provided us templates of Bengaluru protest with indefinite fast.
46. Various other laws such as competition its contracts in Hindi and Kannada. Plans
laws, the Information Technology Act Gadgets 360. 2 March. Accessed on 16
to translate into Tamil and Telugu are November from https://gadgets.ndtv.com/
2000, and the Personal Data Protection currently on hold in view of COVID-19.
Bill 2019 also affect platform workers. So apps/news/uber-ola-drivers-in-bengaluru-
will the Personal Data Protection Bill 2019 55. While the platform does have a protest-with-indefinite-fast-1665200 and
that is being discussed by Parliament. documented zero-tolerance policy, that Business Today. 2019. Zomato delivery
See.Ministry of Electronics and applies only to discrimination by and boys go on strike in Mumbai, Bengaluru
Information Technology. n.d. Information among workers but not to discrimination after food app cuts incentives. 18
38 | Fairwork India Ratings 2020
design to encourage consumers to use traffic infractions costs and fixed capital of the worker in the organization of the
platforms regularly. As a result, initial costs such as onboarding fees, vehicle enterprise; is performed solely or mainly
versions of worker-facing applications and smartphone costs have not been for the benefit of another person; must
had limited features. This gradually accounted for. be carried out personally by the worker;
evolved to today’s worker applications is carried out within specific working
which are a full-fledged suite of products. 81. See Karnataka State Floor Level hours or at a workplace specified or
According to Gonsalves, this shift in Minimum Wages. Notification no: agreed by the party requesting the work;
platforms’ attention to the worker KAE31LMW2017. Accessed on 16 is of a particular duration and has a
application corresponded with a gradual November from: labour.kar.nic.in/labour/ certain continuity; requires the worker’s
(and planned) decrease in the incentives Minimum percent20Rates percent20of availability; or involves the provision
offered to workers. He highlights that, as percent20Wages percent20for of tools, materials and machinery by
an external agency, Obvious does push percent20The percent20Year the party requesting the work’; (b)
for particular perspectives, and that percent202019-20.htm. Since the periodic payment of remuneration to the
individuals within platform companies Karnataka government does not classify worker; the fact that such remuneration
do incorporate suggestions that can delivery workers, beauty workers constitutes the worker’s sole or principal
be equitable for multiple stakeholders. and other occupations into specific source of income; provision of payment in
Gonsalves goes on to argue that design skill categories, this report has used kind, such as food, lodging or transport;
can influence policy and wonders what a Karnataka’s ‘car drivers’ and ‘light vehicle recognition of entitlements such as
set of principles, akin to the Hippocratic drivers’ categories as a point of reference weekly rest and annual holidays; payment
Oath taken by doctors, for designers and to categorize delivery workers, cab and by the party requesting the work for travel
platform-developers would look like. autorickshaw drivers as semi-skilled. undertaken by the worker in order to carry
Similarly, since there was no identifiable out the work; or absence of financial risk
75. The ILO defines minimum wage as the state or national level classification for for the worker’.
“minimum amount of remuneration beauty workers, electricians, technicians
that an employer is required to pay and other home service providers, they 86. See the ILO’s Freedom of Association
wage earners for the work performed are classified as skilled workers for the and Protection of the Right to Organise
during a given period, which cannot be purposes of scoring. Convention, 1948 (C087), which
reduced by collective agreement or an stipulates that “workers and employers,
individual contract.” Minimum wage 82. See Section 51 of The Factories Act, without distinction, shall have the right
laws protect workers from unduly low 1948. Accessed on 16 November from to establish and join organisations of
pay and help them attain a minimum https://labour.gov.in/sites/default/files/ their own choosing without previous
standard of living. The ILO’s Minimum Factories_Act_1948.pdf. authorisation” (Article 2); “the public
Wage Fixing Convention, 1970 C135 83. Hourly wages are a more precise indicator authorities shall refrain from any
sets the conditions and requirements than daily wages given that workers on interference which would restrict the
of establishing minimum wages and platforms work long hours. For this year’s right or impede the lawful exercise
calls upon all ratifying countries to act in study, the minimum wage calculations do thereof” (Article 3) and that “workers’
accordance. Minimum wage laws exist in not consider two wage provisions. First, and employers’ organisations shall not
more than 90 per cent of the ILO member that workers are entitled to overtime pay be liable to be dissolved or suspended
states. for hours in excess of 48 hours a week. by administrative authority” (Article 4).
Second, workers are also entitled to a Similarly the ILO’s Right to Organise and
76. According to the ILO’s (2018) report Collective Bargaining Convention, 1949
on “Digital Labour Platforms and the weekly rest day for which they are to be
paid.See Section 7 (3) of The Code on (C098) protects the workers against acts
Future of Work”, for every hour of paid of anti-union discrimination in respect
work, workers spend 20 minutes on Wages (Central) Rules, 2020. Accessed
on 16 November from https://labour.gov. of their employment, explaining that not
unpaid activities, including, for example, joining a union or relinquishing trade
searching for tasks and researching in/whatsnew/gazette-notification-draft-
code-wagescentral-rules-2020 union membership cannot be made a
clients. In order to account for this condition of employment or cause for
additional time spent on searching for 84. The starting point is the ILO’s dismissal. Out of the 185 ILO member
work, as well as time spent between Occupational Safety and Health states, currently 155 ratified C087 and
work tasks, we define ‘working time’ Convention, 1981 (C155). This stipulates 167 ratified C098.
as including both direct (completing a that employers shall be required “so
task) and indirect (travelling to or waiting far as is reasonably practicable, the 87. This table is meant to be indicative of
between tasks) working hours. workplaces, machinery, equipment and how the operations of platforms rely
processes under their control are safe on a high ratio of service workers, most
77. The “+1” is one unit of the lowest of whom work with little or no wage or
denomination of the currency, to ensure a and without risk to health”, and that
“where necessary, adequate protective social protection, to employees working
boundary between the two figures. for the platform management. Neither
clothing and protective equipment [should
78. The table contains four columns of data. be provided] to prevent, so far as is is the number of employees / workers
The first is the percentage of workers reasonably practicable, risk of accidents precise, nor is the distinction between the
earning less than the minimum wage (X). or of adverse effects on health.” two categories. Thus, it is possible that
The rows represent less than full time, full at least a certain proportion of platform
time, and full time with overtime. 85. ILO’s Employment Relationship management employees also work
Recommendation, 2006 (R198) without any wage or social protection.
79. Taxes are not considered to be a work- recommends that member countries
related cost. develop legal and regulatory frameworks 88. All sources in this table were accessed on
containing specific indicators that speak 16 November.
80. For home service providers on Housejoy to the existence of an employment
and Urban Company, material costs and 89. Platform funds raised data accessed on
relationship, which might include: (a) the 16 November from Crunchbase.com.
other operational costs not including fixed fact that the work is carried out according
capital costs are reflected. For workers to the instructions and under the control 90. Platform funds raised data accessed on
on other platforms, costs including food, of another party; involves the integration 16 November from Crunchbase.com.
data costs, vehicle maintenance costs,
40 | Fairwork India Ratings 2020
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