Wheels of Work: A Cross-Country Look at Digital Driving Gigs in India, Indonesia, and Kenya

Abstract

Using surveys and administrative data from representative samples of drivers working on three leading gig platforms in India, Indonesia, and Kenya, we document the composition, economic experiences, and labor market trajectories of platform workers. Combining platform-based earnings with operating cost data, we estimate earnings net of costs (in PPP-adjusted terms) in each context. We find that the flexible nature of platform work enables drivers to work substantially more than the full-time equivalent, generating higher monthly net earnings than low-skill or casual employment, despite comparable or lower hourly net earnings relative to these outside options. Drivers who exit platform work in India and Indonesia do so to take up better-paying full-time positions. In contrast, Kenyan drivers often exit involuntarily, returning to offline driving with adverse financial consequences. One-third of drivers across countries rely on platform work to supplement earnings during emergencies or slow work periods, suggesting that platform work may play an important role as a financial safety net.

Introduction

The rapid expansion of digital labor platforms and technology-driven intermediaries connecting independent service providers with customers has reshaped employment landscapes globally. Particularly in low- and middle-income countries (LMICs), platform based gig work is often viewed as a potential driver of economic inclusion, providing flexible earning opportunities in contexts where employment opportunities remain limited (World Bank, 2022b). The growth of digitally mediated earning opportunities has also been driven by smartphone penetration and internet connectivity.

Despite the rapid expansion of platform-based gig work globally, most of the research to date has focused on High-Income Countries (HICs), where this sector originated and has rapidly grown. In the United States, it is estimated that the share of work that is online or location-based gig work has increased from 1% in 2017 to 4–5% in 2021 (Katz and Krueger, 2019; Garin et al., 2023). Studies from HICs reveal that while platform work offers flexibility, it often fails to provide adequate earnings. For example, Berg et al. (2018) find that ride-hailing drivers in the UK earn an average of $580 per week, significantly lower than the London median gross weekly pay of $750. In the U.S., Hyman et al. (2020) report that only 15% of ride-hailing drivers work full-time, and although median hourly earnings are $17.40, around 34% of full-time drivers earn less than the minimum wage. For Uber drivers across all US cities, Cook et al. (2020) report hourly gross earnings of $21.07 and net earnings of $10.80 after Uber service charges and expenses. Parrott and Reich (2018) similarly find that 40% of drivers qualify for government assistance due to low earnings. Compared to LMICs, gig work in HICs is characterized by a greater gender diversity and lower entry barriers, largely due to the widespread availability of “idle assets” such as personal vehicles.

Research on gig work in LMICs is still relatively nascent and often limited in scope and/or representativeness. Studies such as Hunt and Samman (2020) in South Africa (focusing on domestic workers), Azuara et al. (2019) in Latin America (ride-hailing), Octavia (2022) in Indonesia (motorbike taxis and domestic work), Zollman (2023) in Kenya (car drivers), and National Council of Applied Economic Research (2023) in India (motorbike drivers) provide important context-specific insights. These studies show considerable variation in pay and experiences of workers. Hunt and Samman (2020) report that earnings are low and most workers rely on a mix of informal and platform-based work to make ends meet. Azuara et al. (2019), however, find more positive outcomes, with platform drivers earning roughly three times their country’s minimum wage and valuing flexibility; however, they do not consider operating expenses in their calculation. Zollman (2023) study of car drivers presents a more sobering picture in Nairobi, where only 16% of drivers earn above the city’s hourly minimum wage after adjusting for operating expenses, and 47% 3 of full-time drivers exceed the monthly minimum wage. Zollman (2023) highlights that low net earnings are partially driven by rental vehicle costs. The National Council of Applied Economic Research (2023) study on two-wheeler delivery drivers in India finds lower estimates for gross earnings (possibly due to a different surveying time period). They also find the sector serves as a stepping stone for young urban males, equipping them with skills relevant to future employment opportunities. Among the few crosscountry studies available, the International Labour Organization (2021) analyzed data from application-based taxi and delivery workers across 20 countries. This report finds that, in many LMICs, earnings from platform work tend to exceed those in corresponding offline sectors.

Despite these valuable contributions, significant research gaps persist in LMIC contexts. Existing studies often rely on small or unrepresentative samples, many recruited through convenience methods such as street recruitment (e.g., Zollman 2023; International Labour Organization 2021), and rarely have access to administrative data to enable random sampling or post-stratification. Moreover, few studies allow for direct cross-country comparisons of platform worker demographics, earnings, and labor market transitions in LMICs. This limits our understanding of how platform work fits into broader economic trajectories in these settings, and how policy responses should be tailored accordingly. Our work aims to fill these gaps.

India, Indonesia, and Kenya provide compelling case studies for examining the gig economy’s role in emerging labor markets, especially in the transport sector. India, home to one of the largest and fastest-growing digital labor markets, is projected to see its gig workforce expand from 6.8 million in 2019–20 to 23.5 million by 2029–30 (NITI Aayog, 2022). This growth is primarily driven by the widespread adoption of two-wheelers in the e-commerce, delivery, and ride-hailing sectors, which account for most platform-based gig work (KPMG India, 2024). Similarly, in Indonesia, motorcycles are the backbone of platform work, with gig platforms offering employment opportunities amid a labor market that balances formal and informal work (Kementerian Perencanaan Pembangunan Nasional, 2023a). Kenya, where over 80% of workers engage in informal employment (Kenya National Bureau of Statistics, 2024), has also witnessed a surge in platform-based work, particularly in the bodaboda (motorcycle) sector, which now constitutes a primary earning source for urban and peri-urban workers (Pollio et al., 2023).

We partner with three different location-based gig work platforms in India, Indonesia, and Kenya (referred to as [platform] to preserve anonymity) that mediate driving and delivery services for two-wheeler drivers (motorcycles, scooters, and electric motorbikes). The services these platforms provide differ in the three countries, and hence, worker experiences vary. In India, the platform is exclusively focused on deliveries. In Indonesia and Kenya, in addition to deliveries, workers drive passengers, as well.

Read the working paper

––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––

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.