Global Economy

Food delivery platforms helping create jobs, but gig workers need social security access: NCAER study


Food delivery platforms have helped create jobs for young workers, especially in Tier 2 and Tier 3 cities, leading to formalisation of the workforce, the National Council of Applied Economic Research said.

However, there is a need to enhance the social security support for platform workers while addressing the challenges faced by food delivery platform workers, NCAER said in its study on the ‘Socio-economic Impact Assessment of Food Delivery Platform Workers’, released on Monday.

NCAER developed a 3-E framework, entry, experience, and exit, to assess 924 food delivery platform workers from one company across 28 cities during April-May 2022 for this study.

This report is the first of a three-part research programme being undertaken by NCAER to explore the socio-economic implications with regard to workers employed in the food delivery platform industry, while shedding light on their employment patterns, incomes, and work environments.

The income analysis under the study shows that as many as 65% of the workers who choose to work on long shifts reported earning either higher or the same income as they were earning in their previous jobs while incomes from platform work account for 45% of the total income for workers opting for shorter work shifts.

“However, real incomes have fallen over time due to inflation and rising fuel costs, among other factors,” it said, adding that the vital role of food delivery platforms is in imparting skills as a considerable percentage of workers have access to training opportunities, which enables them to enhance their employability beyond the platform sector.The report calls for striking a balance between regulating platform work and preserving its inherent flexibility. “While emphasising the importance of safeguarding workers’ rights, the study stresses the need to preserve the accessibility and convenience that platform work offers,” NCAER said in a statement.As per the statement, the report also advocates the formal recognition of the skills acquired by platform workers through partnership with the National Skills Development Corporation (NSDC). “The move would significantly enhance the employability and career progression prospects of platform workers,” it said, adding that platform workers should be provided better and more streamlined access to healthcare facilities to ensure their well-being in the long term.

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