Breadwinners on Wheels: Delving into the World of Food Delivery Partners in Raipur City

Gaurav Jain^1*, Archana Sethi²

¹S.o.S in Economics, Pt.Ravishankar Shukla University, Raipur.

²S.o.S in Economics, Pt.Ravishankar Shukla University, Raipur.

Abstract

This study looks at the socioeconomic status of gig workers who deliver food for platform-based businesses in Raipur, Chhattisgarh, India. This paper emphasizes their employment and growth despite job insecurity. To achieve this goal, structured interviews with fifty platform-based food delivery partners in Raipur were conducted using a qualitative and quantitative research design. There is discussion about the issues that these delivery boys face on a daily basis. Partners in food delivery face challenges in their social interactions, symbolic recognition, goals, work-life balance, and emotional and practical aspects as they work toward a specific job goal. The purpose of this research paper is to delve deeper into this issue and shed light on the income challenges that gig workers face, as well as the implications for their financial wellbeing. A large proportion of them are the sole breadwinners for their families. The results show that 80% of riders work more than 8-10 hours per day. Approximately 5% of riders work late nights to earn a little extra money. Gig workers' weekly earnings range from 2000 to 5000 rupees, but platform fees and personal expenses such as petrol and vehicle maintenance leave them with little or no savings.

Keywords: Digital Platform, Gig Economy, employment, delivery partners, wellbeing.

Introduction:

The gig economy is a new phenomenon that is reshaping the nature of work and fundamentally changing how modern economies are organized. Along with growing smart cities, the demand for on-demand workers has also picked up through platforms such as food delivery riders (gig workers), Zomato, and Swiggy. This platform works on new technologies of automation by algorithms, in which the entire control of the platform is done by the algorithm. It offers both flexibility and versatility. The term "platform economy" refers to the trend of commerce shifting its focus and preference towards digital platform business models. Platforms are capable of hosting services that let users interact, exchange resources, or transact goods with one another as well as with businesses, entrepreneurs, and the general public. A new wave of platform economies has supplanted more traditional company strategies. The platform economy has significantly impacted the workforce, employment types, and categories, leading to digitalization and the complete replacement of various occupations. With the support of significant foreign investment, food delivery apps in India are offering new avenues of employment for young Indians. The nature of markets and employment also changes with new inventions led smartphone users in the country in 2010, and today there are more than 101 crore users, as per the data from 2023 (Statista). Tech-wise, the globe is advancing quickly, and as we become more digitally integrated, so does our nation. E-commerce is greatly being aided by the Internet. The average population of the country is young. This changing technology has attracted a lot, and a new market has emerged, which is today called the platform or digital economy.

Platform work: The city-based study found that 4 out of 10 platform-based gig workers have come to the city in search of work. According to the latest report from CMIE, the rate of unemployment is higher in cities. Graduate youth aspire to work a 9–5 job, yet the job market exhibits apathy. According to the Labour Force Participation Rate Report, young people who have been unemployed for a long time often steal to find work, resulting in only 1 out of 10 women seeking employment. Their labor force participation rate is then 8.8%. Along with not getting work early, the changed circumstances after COVID and inflation have further forced those who have already been part of the workforce to work in the most unorganized sector. And for some reason, they are out of a job. Those who do are middle-income people. Personal interviews showed that somewhere after the job was lost, gig work was chosen because regular jobs were not immediately available. This research is based on food delivery partners. These workers still wake up in the morning worried about the evening bread and log on to that platform on their mobiles. They know that if they don't, other gig workers who have made their presence on stage with this kind of thinking are also aware of the competition found in the gig. All this is because these platforms are based on algorithms, which are programmed.

The paper is structured in sections as follows: Section 1 presents the statement of the problem of research, Section 2 presents the objective of the study, Section 3 presents the theoretical and empirical of methodology, Section 4 presents the result and conclusion of research, and Section 5 presents the conclusion and suggestion of research.

Gig work: when work is taken on a task-basis or temporary assignment of work instead of a regular or traditional form of employment, is called gig work.

Study area: Raipur is Chhattisgarh's Capital and Largest City

• Capital of Chhattisgarh, with over 21 million populations.

• Developed industrial area contributing significantly to state economy.

• Large educational institutions (IIT, IIM, NIT, IIIT, NLU, AIIMS, etc) and easy transportation.

• Large cement factory attracts expatriates and people from other states.

Review of Literature:

This also applies to the gig economy, where workers are often willing to take extremely low pay. Still, other factors like the lack of other income (Istrate & Harris, 2017) or difficulty finding high-quality work because of experience gaps and language barriers (Goods et al., 2019) Furthermore, although there isn't any actual autonomy at work, the concept of it is important for food delivery workers. For instance, there is no communication between management and employees regarding issues like pay, benefits, or the nature of the work, and workers have no say in the price that is charged for delivery to customers.
Given that the majority of food delivery workers in India were from lower socioeconomic backgrounds, loss of income and means of subsistence was a significant problem during the COVID-19 pandemic and lockdown. Many made the decision to leave and return to their villages, but some stayed in the city and made do with what little work they could find because they were unable to transport their bikes back to their homes, which could be thousands of kilometers away. Find (Lalvani & Seetharaman, 2020) make wages a forced reality rather than a question of acceptance. Food aggregators like Zomato and Swiggy are leading the way in India's on-demand food delivery market, projected to reach $8 billion by 2022 (Boston consultancy group report 2020). Furthermore, although there isn't any actual autonomy at work, the concept of it is important for food delivery workers. For instance, there is no communication between management and employees, and employees have no say in the price that is charged for delivery to customers. Employees regarding issues like pay, benefits, or the type of work.

Objectives of the study

1.     To study the socio-economic status of gig workers.

2.     To analyze the platform-based food delivery partners earnings.

3.     To study job satisfaction among gig workers.

Hypotheses:

H₀. There is no significant relationship between gig workers job security and their job

Satisfaction

H₁. There is a significant relationship between gig workers job security and their job satisfaction.

 Research Methodology: In Raipur, there are approximately 1000 gig platform-based food delivery partners. Using the convenience sampling technique, 50 delivery partners were chosen for the study. The data was collected between February 2024 and June 2024. Several statistical tools, such as average, percentage, and others, were used to analyze the data in MS Excel. 

 Market Size: Due to lockdowns and restricted movement during the COVID-19 pandemic, the nation's online meal delivery market experienced tremendous expansion. In order to survive, restaurants and cafes that had not previously offered delivery services were forced to start doing so. However, delivery services developed customer retention strategies like pay-later and subscription offers to maintain this increased influx of revenue following lockdowns. It is anticipated that the Indian online meal delivery market will generate US$43.78 billion in revenue by 2024. A 16.95% annual growth rate (CAGR 2024–2028) is anticipated. By 2028, the market is expected to have grown to a value of US$81.91 billion.

 Life of Delivery Partner: Delivery partner is the buzzword. This was further discussed when companies like Zomato and Swiggy in India expanded it to the whole of India. Today, there are more than 3.5 lakh delivery partners in more than 950 cities; according to the company's owners, 30-40 thousand new delivery partners join every month. Their job is to be a mediator, login to the platform (run by the company) at a fixed time, register their presence, and then start the order receipt process. As soon as the order comes, their mobile screen shows the location on the map and the place to pick up and deliver the order. As an agent, taking these orders, going to the location of the restaurant or cloud kitchen, taking the order, and delivering it safely to the customer is the main part of their work. They get a gig as per their order. Our research is based on their gig and lifestyle. This is all part of the gig economy and shows how the gig economy is attracting this work year after year and helping to create jobs. Food delivery riders' engagement in the gig economy was driven by financial needs, additional income, flexibility, control, and autonomy; on the other hand, their restricted options and lack of education or ability that employers valued kept them in their positions.

Delivery partners use bicycles or scooters for transportation. Employees need to create an ID on the platform in order to manage gigs, ratings, weekly pay, and delivery location. Though they don't keep their own accounts, monthly gig calculations are challenging.

Complaints received during interviews with gig delivery partners. They did not receive any amount for burning fuel to pick up the delivery; only the company pays for the necessary kilometers to deliver the goods from the restaurant to the delivery place. So this system is not advisable because the delivery partners first go to pick up the parcel from the restaurant, for which they travel some distance, and then after delivering the parcel to their place in the return time, they again do not get any amount. It is a completely cost-effective system. Also, the old system has been removed, and the gig system has been brought in, where they have to book a gig.

Result and discussion:

Table 1: Basic Expenses Born to Gig Workers.

Table-1 Expenses pattern of Delivery partners.

Delivery partners create their ID on a platform and pay 1600-2500 rupees for uniforms, food delivery boxes, and common expenses like sweaters and raincoats. Discounts are offered for these items, with a nominal cost of 500-1000 rupees. Helmets are available for 700–1500 rupees. Running expenses include petrol, self-expenses, and car maintenance. Delivery partners drive 100-120 km daily, with maintenance costs of 500-1000 rupees per month. Engine oil changes every 15-20 days cost 350-500 rupees at local market prices. A portion of the proceeds goes to delivery partners, which is about 20–30% of the average monthly earnings of 50 food delivery partners. And a noteworthy proportion of them saw a decrease in pay from their prior positions. A double whammy resulted from the findings, which also show a decline in their real income over time while their percentage of income spent on fuel increased. (Team, 2023)

Objective-1: Socio-Economic Status

Gender: We were not able to locate any female food delivery worker, so all participants were male.

First, it was discovered that 100% of men are employed as delivery partners in the city according to the research that has been done thus far. The breakdown of ages is as follows: This platform-based meal delivery service is used by 16% of the 18–24 age group, 28% of the 25–29 age group, 16% of the 30-34 age group, 12% of the 35–39 age group, 20% of the 40–49 age group, and 8% of the 50+ age group. Thirty is the median age, and thirty is the median age. Time and social change are related, as evidenced by the fact that women are not yet employed in jobs involving food delivery

Figure- 1 Age composition of gig workers in Raipur

Source: Author calculation using primary data.

Figure-2 Educational qualifications of food delivery partners

Source: Author calculation using primary data.

Twenty percent of gig workers attend high school, and thirty-six percent complete higher secondary education through class 12. The highest 40% of graduates are those with a (few are graduated from stem stream also such as B.E, optometry, and other degrees.) Additionally, some diploma holders are 4%. These are the education qualification of delivery partners.

Figure-3 Delivery riders work experience, living status, family structure, marital status and work mode in single Chart.

Source: Author calculation using primary data

The participation of delivery partners, both married and bachelors, is almost equal. Among the bachelors who came to Raipur city for both studies and to find work, there are more who left their studies before coming to Raipur from the original city. And young people who study choose this job more as a part-time option. Married people work full-time, and 84 percent of those living rent. One thing that has come to notice is that these delivery partners find their platform-based company's t-shirts and helmets to be their identity and themselves organized in a way. Even in this interview, the delivery partners said that they get better treatment from the traffic police than their customers and restaurant owners. 68% of delivery partners are nuclear families. In cases of 2-3 years of experience, 52% are engaged in this work. At the same time, 36% of the month-to-month work in this job is temporary because the work is of a very temporary nature and the earnings take a monthly turn. Gradually, their monthly salary starts working and the savings become zero, which removes the mind, and in this way, the youth also join early and quit early.

Figure 4: Work mode of gig workers.

Source: Author calculation using primary data.

It reveals that 76% of gig workers work full time and 24% work in part time.  If someone works more than 35 hours a week, they are taken as full-time workers, and if they work less than 35 hours, they are called part-time workers.

Objective-2 Earning pattern of gig workers

Figure-5 Monthly income distribution of gig workers:

Source: Author calculation using primary data.

The majority of gig workers (16%) earn between 10000 and 15000 rupees monthly. A significant proportion (15%) earns between 15000-20000 rupee, and a smaller (7%) earn between 20000-25000 rupees. The lowest income ranges (below 5000 and 5000-10000 income groups) account for 9% and 6%. The highest income range (25000-30000 rupees) accounts for only 3% of gig workers. The study reveals a significant difference in monthly earnings between full-time and part-time workers. Full-time workers earn average 12,800 rupees, while part-time workers earn average 6220 rupees.

Working Hour:

Figure 6: Working hour of gig workers

Source: Author own primary data

Here figure 6 states that On an Average gig workers works 39 Hours weekly that’s in working as fulltime, monthly working hours Average is 157 hours.

gig workers who usually work as full time earns around 15000-25000 rupee monthly.

Table -2 Statistics mean, median and mode of weekly hours

Objective 3- Job Satisfaction

Table-2 Job satisfaction level among gig workers

Source: Author calculation using primary data.

Gig workers job satisfaction is plagued by significant concerns. Job insecurity tops the list, with 52% of riders expressing major dissatisfaction (rated 1-2 out of 5). Payment (40%), gig system (45%), workload (40%), and stress (39%) also fare poorly, with riders largely dissatisfied. Flexibility, while a positive aspect, still only garners a neutral rating (42%). These findings indicate that riders are struggling with the fundamental aspects of their job, including financial stability, workload, and stress levels. Platform must address these issues to improve rider’s well-being and job satisfaction.

Result: Reject the null hypothesis.

Hypothesis 1. Alternate hypothesis accepted there is significant relationship between Job security and Job satisfaction.

There is a statistically significant positive correlation between job security and job satisfaction (r = 0.621, p-Value = 0.0003) this means as job security increases job satisfaction also increase.

Gig workers with less job security tend to have less job satisfaction, suggesting that job security is key factor influencing job satisfaction.  

Analysis: We conducted an analysis part on gig workers job satisfaction, categorizing factors like flexibility, stress, workload, gig system, payment, and job security. Based on the chi-square test results, there is a statistically significant association between all factors. With 16 degrees of freedom the calculated value is 437.78, and the tabulated value is 26.296, showing high significance. Also, we separately conduct tests between the gig system and payment and between the gig system and job security. Result is: Gig System vs. Job Insecurity This calculated value is 53.67. While tabulating this as 26.296, the P value is < 0.001 (since 53.67 is much larger than 26.296). Secondly, in the gig system, the pay calculated value is 46.99, and while the tabulated value is 26.296, the p value is < 0.001 (since 46.99 is much larger than 26.296). Showing significant association and showing that the all three null hypothesis can be rejected, indicating that two variables are related. 

Key Findings

1.     Long-shift (full-time) workers spend an average of 10.5 hours, whereas part-time workers put in around 5 hours.

2.     Approximately one-fourth (32%) of these employees are in their first job.

3.     Around 48% are migrants who come from different cities in different states. 52% are non-migrants who work in their hometowns. Some of them are from neighboring states, and they came over here a long time ago for work.

4.     Income after COVID-19 declines, and living costs increase.

The research reveals that gig workers believe that their earnings are only enough to meet basic needs such as food, water, housing, education, and housing rent. They do not save for the future. When asked to leave their gig job, they cite rising unemployment and not receiving the salary they need. However, gig work is primarily driven by flexibility and the ability to cover household expenses. They also provide 10–12 hours of full-time work daily to increase their income. The research suggests that these gig workers are willing to sacrifice their traditional full-time jobs for the flexibility and income they provide.

Key Challenges:

1.     Income instability: Lacks a stable income, leading to financial uncertainty.

2.     Job Security: Since they are typically not guaranteed consistent work or long-term contracts.

3.     Fear of loot and threat: working late hours and delivering in unfamiliar neighborhoods

4.     Lack of benefits: not get benefits as a traditional employee. (Healthcare, Paid Leave, or

Retirement plan)

5.     Limited Social Support: As they work independently, that leads to a feeling of isolation and

Lack of social support from colleagues & less social interaction.

6.     Other: Gig system, Zero Hour Contract, Rush Hour Running, and Continuous Travelling.

Dismissal of ID

Potential Solution

1.     Income stability: platform to provide fair and transparent pay structures and provide financial planning resources so it can help mitigate income instability.

2.     Benefits and protection: healthcare, paid leave, and some benefits for whomever is working more than years for them. Providing benefits or points in their ID for zero-hour order.

3.     Job Security: This is somewhat the most debatable issue regarding the security of the job of a gig worker. But by backing up their delivery partner team for any support and being able to listen to their problems they face while working (hearing their voice), it can be taken by then as a sense of security. Because there is no such thing or option available for gig workers in platform-based contracts. Countries that make notable change: In the United Kingdom, gig workers, including delivery partners, have been granted certain rights and benefits. They are entitled to receive the national minimum wage, holiday pay, and rest breaks. Additionally, they have the right to request flexible working arrangements and protection against discrimination.

These measures have both social and economic implications.

Conclusion:

These solutions require collaboration between gig platforms, policymakers, and worker advocacy groups to create a more supportive and sustainable gig economy. The issue of the bargaining power of gig workers should also be discussed. The company should listen to gig workers on issues like their gigs being cut with rising inflation; this is what makes their business. It is very important that their own identity as gig employees is also cleared, and their interests (social security) can be protected by giving them the status of an employee.

Reference

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