Defining Gig Economy

With the advent of technology platforms like Swiggy, Ola, Uber, UrbanCompany, etc., the gig Economy in India has grown significantly in the past few years. To define, a gig is a free Market system in which temporary and flexible position is common, and companies hire independent or short-term workers. It is different from the traditional full-time professional.

The gig style of work is a recent concept in India, but globally over 200 million people are considered to be a part of this workforce. In a gig economy, large numbers of workers are part-time or in temporary positions. It acts as a cheaper and more efficient means of working. But, the major criteria the gig work demand is the internet and technology. People who don't use technological services may be left behind by the benefits of the gig economy.

Gig employees in the workforce include project-based workers, independent contractors, freelancers, and temporary or part-time hires. A wide variety of positions fall into this category, such as cab driving, delivering food, freelance writing, part-time professors, handling events, art & design, media, etc. Technology with a smartphone and unlimited data has been a driving force behind the gig mode of working. In fact, restaurants & cafes are adapting space & design for such working professionals.

Gig Economy Platforms

There are many platforms that are growing the gig economy by providing connections between companies and gig workers across several industries. Following are the major ones-

• Uber
• Zomato
• Swiggy
• Ola
• Dunzo
• Urban Company
• Flipkart
• Airbnb
• Lyft
• Freelancer
• Etsy
• Udemy

Gig Economy India

The Coronavirus pandemic has dramatically changed the country’s labour force by shifting the focus to gig economy jobs. There has been a steady increase in the gig workforce. The Associated Chambers of Commerce and Industry of India (ASSOCHAM) estimated India’s gig economy growth to $455 billion by 2024. A recent report jointly published by global management consulting firm Boston Consulting Group (BCG) and non-profit organization Michael & Susan Dell Foundation provides a detailed look at the gig economy’s potential and future prospects.

It predicted that the country’s gig economy could triple over the next 3-4 years to 24 million jobs in the non-farm sector — from the current 8 million jobs. The number of gig jobs could go up to 90 million in 8-10 years, with total transactions valued at more than $250 billion, the report said.

The report also highlighted that the gig economy is also expected to contribute 1.25% to India’s Gross Domestic Product (GDP) over the long term.

With this form of working, even companies save a lot on overhead costs on office space and other office equipment. Workers, on their part, have freedom of space, flexible hours, choice of work and essentially the ability to enhance Income by doing multiple gigs. Looking at the pandemic and the current market scenario, large scale as well as small businesses are opting to hire more gig talent. Gig workers also have more avenues to explore their talents.

COVID-19 has transformed the working culture, both for companies and employees and established a next normal. As per the reports and estimations of experts, the future of the next normal seems to be dominated by the gig economy.

Gig Economy Advantages & Challenges

The gig economy is based on flexibility, liquidity, multiple opportunities, and easy access through online platforms. It benefits not only workers, but also businesses, and consumers by making work more adaptable considering the market scenario and demand.

Companies that cannot afford to hire full-time employees can hire part-time or temporary employees for specific projects. On the employee’s side, people with multiple skills and talents get the freedom to explore skilled-based jobs as well as earn more.

Despite its massive potential, India’s gig economy is still at a very nascent stage. According to a survey, last year by Flourish Ventures, an early-stage venture Capital firm, ‘Nearly 90% of Indian gig workers have lost income during the pandemic and are concerned about their financial future’.

Also, one of the main concerns for gig workers is the lack of security benefits such as medical expenses, retirement benefits, etc. Also, there is no guarantee for steady cash flow compared to the monthly salary of traditional working culture.

If the gig economy is going to become the next normal, then the government would need to identify the drawbacks and regulate the laws for worker protections and better growth.