BluSmart emerges as front-runner, Ola scores zero in rankings for fairness of gig work

​​​​​For the third consecutive year, Ola, a major player in the ride-hailing industry, has found itself at the bottom of the Fairwork rankings for fairness to gig workers.

With a consistent score of zero out of 10 points, it's a concerning trend for the platform. Meanwhile, BluSmart, a challenger to Ola and Uber, emerged as the leader in the ride-hailing sector with five points, while Uber managed to score only one point.

Fairness Across E-Commerce Platforms

The rankings by Fairwork assessed several e-commerce platforms on various parameters of fairness, including pay, conditions, contracts, management, and representation. BigBasket secured the top position with six points, while Zomato, Swiggy, Urban Company, and BluSmart shared the second spot with five points each. In contrast, Zepto scored four points, Flipkart three, Amazon two, and Dunzo and Porter ranked just above Ola at one point.

Optimism for BluSmart

BluSmart's success in these rankings is notable because it represents a deviation from the typical "asset-light" model used by other platforms in the sector. The report suggests that BluSmart's operational model might pave the way for better working conditions for gig workers in the platform economy, offering a glimmer of hope in an otherwise challenging landscape.

Fair Pay and Conditions

This year's rankings highlighted some key insights. Firstly, no platform managed to score above six points, indicating the need for significant improvements in worker fairness.

In particular, no platform met the second point of the Fair Pay principle, which requires platforms to demonstrate that workers earn at least the local living wage after work-related costs. However, Urban Company publicly committed to ensuring that their workers earn a living wage after such costs.

Fair Contracts and More

Regarding Fair Contracts, seven out of the 12 platforms were awarded the first point. BigBasket, BluSmart, Dunzo, Swiggy, Urban Company, Zepto, and Zomato received this point for ensuring accessible and understandable contracts and having a protocol for data protection and worker data management.

Highlights of the news:

• Fairwork India's report highlights need for structural changes in platform economy to ensure decent work for gig workers
• Only three platforms (BigBasket, Flipkart, and Urban Company) have a minimum wage policy
• Seven out of 12 platforms provide adequate safety equipment and periodic safety training to their workers
• Five platforms (BigBasket, Swiggy, Urban Company, Zepto, and Zomato) provide workers with accident insurance coverage at no additional cost
• Survey of 963 consumers across 12 major cities finds that less than half of consumers are aware of the working conditions of gig workers
• Rajasthan Platform Based Gig workers (Registration and Welfare) Act, 2023 is a significant step towards regulating the platform economy in India
• Fairwork India's report calls on platforms, consumers, and the State to work together to create a more equitable platform economy

Latest Facts:

• The Fairwork India report is based on an assessment of 12 digital platforms offering location-based services in sectors such as domestic and personal care, logistics, food delivery, and transportation

• The report evaluates the platforms on five principles: fair pay, fair conditions, fair contracts, fair management, and fair representation

• No platform scored more than six out of the maximum of ten points, and none scored all the first points across the five principles

• Fairwork India is a research initiative that aims to improve the working conditions of platform workers in India

Conclusion:

The Fairwork India report provides a valuable assessment of the fairness of gig work in India. The report highlights the need for structural changes in the platform economy to ensure decent work for gig workers. Platforms, consumers, and the State all have a role to play in creating a more equitable platform economy.