Gig economy India’s 3rd pillar, delivery partners got ₹5,000 cr last yr: Swiggy’s Rohit
The gig economy has undergone significant transformations in recent years, and its impact on the Indian economy is becoming increasingly pronounced. According to Swiggy’s food marketplace chief, Rohit Kapoor, the gig economy has become a “third pillar of livelihood” in India. This statement highlights the growing importance of the gig economy in providing income opportunities for individuals in the country.
Kapoor’s remarks come amid continued scrutiny of delivery partner earnings, with many questioning the fairness of the compensation provided to these workers. However, according to Kapoor, the gig economy is not only providing a substantial source of income for delivery partners but also contributing significantly to the overall economy. “Last year, we would have paid out more than ₹5,000 crore, so there is a substantial amount of income flowing back into delivery partners’ hands,” he added.
The gig economy, which includes platforms such as Swiggy, Zomato, and Uber, has been growing rapidly in India, driven by the increasing demand for convenience and flexibility. The sector has created new opportunities for individuals to earn a living, particularly in the wake of the COVID-19 pandemic, which has accelerated the shift towards online platforms.
The payment of over ₹5,000 crore to delivery partners last year is a significant indicator of the gig economy’s contribution to the Indian economy. This amount is substantial and demonstrates the potential of the gig economy to generate income for individuals who may not have access to traditional employment opportunities.
The growth of the gig economy in India can be attributed to several factors, including the increasing penetration of smartphones, the expansion of internet connectivity, and the rising demand for online services. The government has also played a crucial role in promoting the gig economy, with initiatives such as the Digital India program aimed at promoting digital literacy and entrepreneurship.
However, despite the growth and potential of the gig economy, there are still concerns regarding the welfare of delivery partners. Many delivery partners have raised issues regarding their compensation, working conditions, and social security benefits. The lack of job security, inadequate compensation, and limited access to benefits such as health insurance and pension schemes are some of the challenges faced by delivery partners.
To address these concerns, companies such as Swiggy have introduced various initiatives aimed at improving the welfare of delivery partners. These initiatives include the provision of insurance coverage, access to financial services, and training programs to enhance their skills and earning potential.
The gig economy has the potential to play a vital role in promoting economic growth and development in India. By providing income opportunities for individuals, particularly in rural areas and urban slums, the gig economy can help reduce poverty and inequality. Additionally, the gig economy can also contribute to the development of entrepreneurship and innovation, as individuals are encouraged to start their own businesses and develop new ideas.
In conclusion, the gig economy has become a significant contributor to the Indian economy, with the potential to provide income opportunities for millions of individuals. The payment of over ₹5,000 crore to delivery partners last year is a substantial indicator of the sector’s growth and potential. However, there is still a need to address the concerns regarding the welfare of delivery partners, including their compensation, working conditions, and social security benefits. By promoting the growth of the gig economy and addressing these concerns, India can unlock the full potential of this sector and promote economic growth and development.
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