A report titled “Assessment of Socio-Economic Impacts of Food Delivery Platform Employees” shows that the median education level of food delivery partners is 12, which is higher than that of most urban workers. The report was released on Monday by the National Institute of Applied Economic Research (NCAER), a leading economic policy think tank.
While commending the report on platform workers, NCAER Professor Dr. Bornali Bhandari noted: “In an era of major economic change, the socio-economic impact assessment of food delivery platforms is critical for policymaking and informed decision-making. Developed globally, this study will enrich the existing literature and policy framework in India.”
Create job opportunies
The report sheds light on various aspects of job creation for young workers under the age of 35. The survey results show that nearly 70% of the respondents are non-migrants, working in their hometowns in second- and third-tier cities.
Most workers are on short-term contracts. Studies show that employment is becoming slightly more formalized. Research shows that accident insurance and task-based written contracts are examples.
Skills development in the form of training opportunities has also surfaced due to the important role of food delivery platforms, the report said.
Revenue Dynamics
As many as 65 percent of workers who choose to work long hours say they earn more or the same as they did in their previous job, the report said. But real earnings have fallen over time due to factors such as inflation and higher fuel prices. Platform work earns 45% of total wages for workers who choose shorter shifts.
67.7% of respondents said they joined the platform because of higher/extra income. Food delivery workers compared to urban workers.
Incentives such as passive income and freedom to work drive students to become meal delivery partners, research finds.
social safety net
A survey by the study found that 90% of workers joined the industry because they lost their jobs, suggesting that food delivery platforms have become a tool for social security and employment.
The report highlights the need for a multifaceted approach to address the challenges faced by food delivery platform workers. It emphasizes the need to maintain the accessibility and convenience that platform work provides. Another important policy recommendation is to strengthen social security support for platform workers, especially given the mixed nature of their employment.
It argues for formal recognition of skills acquired by platform workers through partnerships with the National Skills Development Corporation (NSDC). This move will significantly improve the employability and career prospects of platform employees.
(Written by Aditi Kashyap and Nameera Anjum, BusinessLine Interns)
