Gig Economy

US Govt has finally started moving towards providing for the freelance food delivery workers. New York alone has 65000 food delivery workers. New York recently passed laws forcing companies to provide minimum payment per order, pay them atleast once a week, providing gratutities to workers, allowing food delivery workers to use bathrooms in restaurants, etc., California exempts gig workers from labour laws and proposed that food delivery and ride sharing workers should remain contractors. Food delivery apps are not sharing the customer data with restaurants which makes the restaurants ever in the dark to whom they are delivering. New York will also enact a minimum payment from Jan 2023. Seattle is also trying to set a minimum wage for food delivery workers. 

This hampers the restaurant in building a loyal customer base in the long run. Even China has ordered food delivery platforms to provide minimum wages, insurance coverage and improved work conditions. China is keen to regulate the local tech giants since many freelance workers are working in the food delivery industry.Mobile apps demand access to contacts & camera though it is not needed for them. They are collecting more data from the user than what they actually need. They sell this data to other providers. Food Delivery companies believe that their data is their asset which they can monetize anytime. 

Gig Economy is being hailed as employment of the future. Many however do not look at the reason why Gig Economy emerged. It is not because the gig workers like independence and want to be there on those jobs. It is because there is increasingly a large population who do not have fulltime jobs anywhere. Workers are exploited. Algorithms ensure they get no bonuses. Many of these companies are high on valuation but rarely make profits. They just keep growing on the back of investor capital but do not have a solid business model to make profits. Most of the App companies in the gig economy rarely make profits since they keep burning all their cash in expanding across the nation. No Wonder Fairwork called Swiggy and Zomata the most unfair gigwork companies in India. In USA & China too, food delivery companies will get the same negative reviews. Their contractor employees do not like them yet they continue since there are no other good alternatives available in the market. The risk of failure is put on the delivery worker despite they not earning fair earnings. 

In contrast, etailer delivery workers are far better placed since they are part of some courier company or contractors and have fixed work to deliver. It is predetermined work unlike on demand work of food delivery companies. Already privatization has destroyed the rights of workers globally since there are no unions to fight for the workers globally. The Freelance nation has no protection for its residents yet it keeps growing due to no new jobs emerging in the economy.Capitalists obviously encourage such companies since they want weakened structures in society where workers have no rights. A Strong civil society is anathema to it for it can unite anytime to provide a voice. 

Gig Economy is unstable income and it does not provide any recourse when a person falls ill. He is left to fend for himself. Banks will not give loans nor are they recognized as employees by their companies. They are only independent contractors but still there is no end to people joining it. People are fighting for the same pie, forced to wait for long hrs in sun or rain on the roads waiting for orders. Those in the gig economy in technology coding, creative side are far better for they are competing on skill and they have opportunities to get more business proving their talent. Asia is the leader of the gig economy. Payoneer report stated that freelancers revenues in India,Bangladesh, Philippines and Pakistan.

USA stopped manufacuring and outsourced to China, stopped hiring american workers& instead hired cheaper Indian workers. Now its citizens are doing the same hiring freelancers across the globe for works they can do remotely. Where does this leave the normal unskilled worker in USA, nowhere. He joins the gig economy and tries to technologically upgrade himself or goes to work as contractor in a low wage firm. Ultimately the more workers join the gig economy, it will be a race to the bottom. 36% of U.S. workers are freelancers. Capitalists loves such companies which do not have to bother about employee benefits and responsibilities. 

Politicians love such companies since it gives them chance to build a welfare state providing welfare to more such votebanks. Hence they invest heavily in these platforms though none of them make any profits. It also takes off the burden of not providing employment off the shoulder of governments. Almost the entire gig economy workers claim unemployment benefits since they are honestly not employed by companies. The more they encourage such companies, the lesser dissent they listen from disgusted youth who form the bulk of unemployed. In every nation, the Gig Economy has grown to such a extent that it does not dare to even regulate it so as to not disturb it. Gig economy companies say they are providing mass employment which the government should be happy about.