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Case Study

The Rise of Gig Economy in India

Ola, Uber, Zomato and Swiggy have been giving employment to the millions of people. These people are generally not that much educated and they work on the basis of short-term contracts or as freelance. This thing is called “Gig Economy”. Here is how the gig economy is changing India by Anuj Vohra.

We all know, India’s population have been growing rapidly. And because of our poor education system, India do not have a skilled and powerful workforce. That is why for India, the gig economy is very much important because it provides employment to the millions of people.

The internet revolution has completely changed or I should say create a new technology-based gig economy.

People are getting paid by how many hours they work, how many food deliveries they complete and how many rides they do.

How the Gig Economy is Changing India:

Tech companies have been spending millions of dollars in marketing to attract new consumers and retain consumers. The affordable internet and the user-friendly interface of the mobile application make the use easier.

What that means is, it is easy to book a cab and order food online for 20 years old college going students and for 65 years old retired people as well.

Let us look at how Ola and Uber are changing India

Ola and Uber: Contribution to Gig Economy

We have the accessibility to book a cab using an app and after a few minutes, the cab driver come to our location for the pickup and he will drop us to the location that we have provided while booking a cab.

Also read: 9 Reasons Why do Unorganized Businesses are Better than Organized

You might be thinking these cab drivers must be employees of Ola and Uber.

No. They are not employees.

They are partners.

Now, many people may say Ola and Uber are paying very less to drivers. But, that’s not the point.

Look at this way instead…

Before Ola and Uber, it was not easy to reach to the cab drivers and trust was also the major factor. If the cab drivers don’t associate themselves with Ola and Uber, they may not get regular consumers and eventually they may not earn money on a regular basis.

In the rainy reason, the aggregators give incentives to the drivers.

Besides, Ola auto and Uber auto got a massive success. The Rickshaw ride is more affordable than a cab ride. Uber and Ola combine is providing employment to more than 2 million people as cab drivers.

The average income of drivers is between 20,000 INR to 50,000 INR.

Here is the punchline.

At least, Cab drivers have started earning a decent amount monthly.

Zomato and Swiggy: Contribution to Gig Economy

Ordering food online has become a very common thing.

The good thing about Zomato and Swiggy is offers! By applying coupons, we get discount so much so that the food becomes more affordable than the actual price of restaurants. Similar to Ola and Uber, Zomato and Swiggy have been spending millions on marketing to acquire new consumers and retain existing consumers.

Also read: 4 Reasons Why Food Delivery Companies are Giving so many Discounts?

Same way, Zomato and Swiggy call their delivery guys as partners.

The food delivery guys earn with regular monthly income and incentives. If the consumer gives five-star rating then the delivery gets incentives. Similarly, if the delivery guy delivers the food in a rainy reason, the companies give more incentives.

I could not find the exact number of delivery partners but it is more than 3,00,000.

According to LiveMint, the salary of delivery partners between 25,000 INR to 50,000 INR.

Also read: How to Start and Grow Cloud Kitchen Restaurant

Similarly, Amazon India and Flipkart also have been also investing in hiring delivery boys for 5-6 years.


Concluding this article, in order to grow the country’s economy, employment is the most essential thing. When people earn money then and then people tend to spend money. When people spend more, this activity generates demand for any goods and service.

If less-educated and the people who are not employable start spending, it can impact rapidly to the country’s economy.

Anuj Vohra

Hi , I am Anuj Vohra. Founder of Itsfacile.com & Saral Investment.

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Anuj Vohra

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All the articles are written by Anuj Vohra