The changing landscape of work: Insights into India’s delivery platform gig workforce

Every time you order food, call a ride, or get a package delivered to your doorstep, you’re likely interacting with the growing gig economy. This way of working – characterized by short-term contracts and app-based or platform-based work – is transforming labor markets around the world. According to 2021 data from the policy think tank NITI Aayog, approximately 7.7 million people now work in India’s gig economy across various skill levels.

Despite the growing role of this new type of work, limited data and evidence exist on gig work and gig workers themselves: Who are they? What makes them choose gig work? What do they earn and what do they do after engaging in the gig economy?

The IDinsight team in India, as part of the Digital Economy Research Impact Initiative (DERII) supported by the Gates Foundation, conducted a descriptive study to shed light on the economic lives and experiences of platform-based gig workers.  We partnered with a location-based Indian gig platform to study two-wheeler drivers (mostly motorbike and scooters) engaged in delivery-based gig work across India’s urban areas. Using the platform’s administrative data and surveys conducted over the phone with 2,547 drivers, we provide data on the demographics, labor supply choices, earnings, and overall experiences of this emerging workforce to help policymakers and stakeholders develop effective policies for these workers and the sector.

This blog post summarizes the key findings from our research and highlights what we have learned so far. The main and companion report as well as supplementary qualitative findings can be accessed on our DERII project page.

Key Findings

Demographics and Background 

We find that drivers are predominantly young men, with less than 1% of women engaging in this kind of work. The average driver is 28 years old and more than half operate in the large metro cities such as New Delhi and Bangalore, with the remaining spread across smaller urban centers. The average driver’s tenure on the platform is approximately 13 months, highlighting the transitory nature of this work. Notably, 32% of drivers report they are also in school,  implying that gig work might be providing extra earning opportunities for students. We also find that 50% are migrants, either from within the same state or from other states within India.

Why Do Workers Choose Gig Work?

The primary motivation for joining this work is economic necessity, with 57% of respondents citing the need to meet household needs. Additional motivations included those reported seeking higher earnings compared to previous work (14%) and the interest in the flexible nature of this work (6%). This is particularly true for migrant drivers, who value the flexibility and easy entry/exit of this work, which allows them to visit their families at home multiple times a year, as seen in our qualitative study.

Labor Supply

Our survey reveals that, contrary to expectations and prior literature, the majority of drivers operate part-time on the [platform], with only 23% working more than 8 hours per day. This marks a notable shift from their previous working patterns— 45% were previously engaged in formal full-time work. These workers report having a portfolio of earning sources (an average of 1.69), with this being more diversified for part-time drivers. For many, platform work serves as a supplementary rather than primary earning stream. This could suggest a shift away from traditional work with predictable hours and fixed salaries toward platform work, valued for its autonomy and flexibility.

The labor supply patterns underscore this trend: only 29% of drivers report maintaining consistent daily hours, and merely 21% strategically time work around surge pricing. Notably, 33% of drivers work solely during their free time. This flexible approach is particularly pronounced among part-time workers, as these groups are likely to have other full-time commitments such as work or education, and women drivers who need to balance domestic responsibilities.

Earnings 

In India, platform gig work pays similarly to occupations in service/sales and crafts/trade sectors, based on our analysis that compares gig to other jobs available to this population in urban India. For a sub-sample of drivers who work more than 8 hours a day and who’s driving patterns resemble full-time work, the average gross monthly earnings is ₹27,814 (~332 USD), with expenses accounting for 32% (primarily fuel and maintenance costs). This brings the net monthly earnings to  ₹18,761 (~222 USD), which aligns with findings from other sources. They work an average of  62 hours per week, and calculated per-hour net earning is Rs. 75.3 (~0.89 USD). 

After leaving the [platform], most drivers report returning to full-time formal work, while 17% have become self-employed, and 14% have continued working with other similar gig platforms. The majority also report earning more in their current work, compared to platform work, signaling that these platforms could potentially act as stepping stones to better opportunities.

Gender Disparities

Gender differences in work patterns are stark. Women report responding to surge pricing much less frequently than men (12% versus 22%), potentially limiting their earning potential. This pattern mirrors findings from US research which finds that women make 7% less per hour due to not being able to work during surge pricing due to domestic duties, suggesting systemic challenges for women in platform-based gig work that extend beyond India’s labor market.

Conclusion: Accommodating a diverse workforce 

Our research highlights the diverse nature of worker profiles comprising rural migrants seeking flexible work that allow them to travel home, students supplementing their earnings, workers seeking full-time earning opportunities and stable compensation, women balancing domestic responsibilities, and full-time workers seeking supplementary earnings (sometimes in response to economic shocks). 

As the gig economy continues to evolve, it  is crucial for policymakers and platform operators to recognize and accommodate this workforce’s diverse motivations, preferences, and economic aspirations. Designing adaptive regulations that respect worker heterogeneity will be crucial in supporting this emerging labor market segment. In the next phase of our project, findings from our descriptive study will guide further inferential research, with the goal to aid policymakers and stakeholders in developing effective policies for this varied group.

The Digital Economy Research Impact Initiative (DERII) is a five-year initiative (funded by the Gates Foundation) to study the digital economy and its welfare implications on gig workers using platforms that provide location-based services in three countries – India, Kenya, and Indonesia. The full research report from the three countries is available here.