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

Abstract

In this study, we conduct descriptive surveys targeting a representative sample of passenger and delivery drivers working on gig platforms across India, Indonesia, and Kenya. We supplement our survey findings with data on earnings and hours from the platforms we collaborated with in India and Kenya. Our analysis reveals significant heterogeneity in demographic characteristics, earnings, and post-platform employment trajectories among drivers in these countries. In India, drivers tend to be the youngest and most educated, with a significant proportion being students. Administrative data from platforms in India indicate high churn rates, suggesting the transitory nature of this work for many drivers. Conversely, Indonesian drivers are generally older and have lower levels of formal education, with the majority expressing a long-term commitment to the platform. A noteworthy proportion of drivers across all three countries previously held formal full-time work before engaging in platform work. In Kenya, drivers are most likely to have transitioned from offline driving, reflecting a more professional, longer engagement with the driving sector. 

Estimating “typical” net earnings (gross earnings adjusted for expenses) is challenging for these jobs without longitudinal data that covers the full year. Gross earnings are subject to fluctuations depending on the time of the day and week of the year, reflecting external economic shocks and changes in supply/demand. Instead of a point estimate, we provide a range of estimates for each country. In India, net earnings per hour to be between $0.62-$0.97, though these figures might be slightly inflated due to heat waves during the study period which increased gross earnings per hour. It’s unclear how frequently drivers are exposed to extreme weather conditions or other economic shocks and whether this represents earning potential for the full year. For Indonesia, the best estimate for net earnings is about $0.54 ($0.45 PPP adjusted, scaled to India), though it’s unclear how representative this is for other periods throughout the year due to lack of administrative data. In Kenya, net earnings likely fall between $0.5-$0.79 ($0.35 and $0.56 PPP adjusted, scaled to India), with a stronger likelihood that the actual typical earnings per hour figure is closer to the lower bound due to the fact that the survey took place in the weeks before Christmas holidays during which the drivers were busier. The cross country net earnings differences are explained by a variety of factors including differences in 1) utilization rates (percentage of times the drivers spend driving/delivering) which is highest in India at 70%, followed by Indonesia at 60% and Kenya at 40%; 2) expenditures for operating costs including fuel, rental and repair costs which is proportionally higher in Kenya (33%, 38%, 57% of gross income is estimated to be spent on operating expenses in India, Indonesia and Kenya, respectively). 

Despite feeling the least respected by customers, platforms, and merchants, Kenyan drivers report the highest level of approval from family and friends regarding this work. The disparities in pay and working conditions between countries likely highlight broader labor market differences, indicating generally poorer conditions in Kenya and Indonesia. Alternatively it could reflect differences in platform service provisions: passenger driving and delivery in Kenya/Indonesia, and delivery only in India. By surveying drivers who left the platform, we find that in contrast to drivers in India and Indonesia, who often leave for better-paying full-time positions, Kenyan drivers frequently exit the platform involuntarily, returning to offline driving with generally adverse financial outcomes. About one-third of drivers across three countries return to platform work during emergencies or slow work periods, suggesting that the platform may function as a financial safety net against earnings volatility.

Read the working paper

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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.