The Rise of Gig Workers in India and the Changing Nature of Work
The modern workforce is changing – quietly, quickly, and irreversibly. Technology-enabled platforms have redrawn the boundaries of work, enabling flexibility, scale, and access to income in ways that traditional employment models never could. At the heart of this transformation lies the gig worker: the ride-hailing driver, the delivery partner, the task-based service provider.
In India alone, millions of individuals earn their livelihood through platforms such as Ola, Uber, Swiggy, Zomato, Rapido, Zepto, Blinkit and others. Estimates suggest that India’s gig workforce may grow from approximately 13 million today to over 23 million by 2030, making it one of the largest platform-based labour pools globally. This is no longer a fringe segment of the economy – it is a significant part of how work is being done.
Yet, despite their growing presence, gig workers often sit outside the traditional definition of the “workforce.” This raises a fundamental question that organisations, policymakers, and society at large are increasingly being compelled to examine:
Are gig workers truly independent participants in an open marketplace – or are they, in effect, part of a larger organisational workforce without formal recognition?
This article does not attempt to answer that question definitively. Instead, it seeks to explore it.
A Clarification on the Gig Economy
It is important to note that the gig economy is not limited to app-based delivery or ride-hailing roles. In its broader sense, gig work includes independent consultants, freelance designers, photographers, writers, trainers, educators, and other professionals who offer services on a project or contract basis.
However, this article focuses primarily on platform-mediated gig work – where digital platforms play a central role in allocating work, determining pay structures, and shaping everyday work experiences. This distinction is important, as the level of organisational influence, dependency, and vulnerability can vary significantly across different forms of gig work.
Who Are Gig Workers – And Why Their Role in the Workforce Is Expanding
Most platform companies define gig workers as independent contractors, not employees. This classification is central to the gig economy’s operating model. It enables:
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Flexible engagement
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Rapid scaling
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Cost efficiencies
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Choice of working hours for individuals
At the same time, this classification also means that gig workers typically do not receive benefits traditionally associated with employment – such as paid leave, health insurance, retirement benefits, or formal grievance redressal mechanisms.
From a legal standpoint, this distinction is clear. From a lived-experience standpoint, it is less so.
Gig workers often:
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Wear company branding
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Are evaluated through platform-controlled rating systems
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Follow platform-determined service standards
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Are subject to penalties, incentives, or deactivation based on algorithmic decisions
This creates a grey zone – where workers are not employees, yet their day-to-day work experience is deeply shaped by the platforms they serve.
Are Gig Workers Employees or Independent Contractors?
The question of whether gig workers are “employees” is often framed as a binary – yes or no. In reality, it may be neither.
From a legal and contractual perspective, most gig workers are not employees. They are not hired through traditional HR processes, are not on payrolls, and do not have guaranteed work hours. Platforms position themselves as intermediaries, connecting supply with demand.
However, from an organisational behaviour perspective, gig workers are not entirely independent either.
They operate within:
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Platform-designed systems
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Predefined rules of engagement
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Performance metrics that influence income and continuity of work
This has led many observers to argue that gig work represents a new category of work, one that does not fit neatly into 20th-century employment definitions.
As management thinker Peter Drucker famously observed: “The greatest danger in times of turbulence is not the turbulence – it is to act with yesterday’s logic.”
The gig economy may require new logic altogether – without forcing it into old frameworks prematurely.
Are Gig Workers Impacted by Company Culture?
Culture is often discussed in the context of offices, teams, and leadership interactions. At first glance, gig workers – who work independently and remotely – may appear untouched by organisational culture.
Yet, culture is not limited to physical spaces.
Gig workers experience company culture through:
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How platforms design incentives and penalties
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How transparent algorithms and earnings structures are
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How grievances are heard – or not heard
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How safety, dignity, and communication are handled
In this sense, gig workers may not participate in culture in the traditional sense, but they are certainly affected by it.
The values embedded in systems, policies, and decision-making frameworks shape worker behaviour, motivation, and trust. Culture, in the platform economy, is encoded – often invisibly – into technology.
This raises another important question: If organisational culture influences gig workers’ livelihoods, does the organisation bear any cultural responsibility toward them?
Again, this is not a question with an easy answer – but it is one worth asking.
Gig Workers, Social Security, and India’s Evolving Policy Conversation
In India, recent developments suggest a growing recognition of this grey zone. The Code on Social Security, 2020, for instance, formally acknowledges gig and platform workers as a distinct category and proposes social security mechanisms funded partly by platform contributions.
More recently, public discourse around the draft social security rules for gig workers gained visibility when Member of Parliament Raghav Chadha raised concerns regarding the vulnerability and welfare of platform workers. His intervention did not resolve the issue – but it did signal that gig work is no longer invisible in policy conversations.
These developments do not conclusively redefine gig workers as employees. Instead, they reflect an evolving attempt to balance:
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Business flexibility
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Worker protection
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Economic sustainability
They also underline the reality that this is a work-in-progress, not a settled debate.
India’s Approach to Gig Workers: Regulation Without Reclassification
India’s approach offers an instructive case study. Rather than forcing reclassification of gig workers as employees, policymakers have attempted a middle path – one that preserves the gig model while introducing limited safeguards.
This approach:
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Recognises the economic value of gig platforms
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Acknowledges the scale and vulnerability of gig workers
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Avoids disrupting the business model overnight
Critics argue it does not go far enough. Others caution that over-regulation could reduce opportunities altogether. The truth likely lies somewhere in between.
What this case illustrates is not a solution – but a reality: gig work challenges traditional ideas of employment, responsibility, and organisational boundaries.
What This Means for Companies Operating in the Gig Economy
For organisations operating in or alongside the gig economy, the question is not necessarily one of legal obligation – but of intent and design.
Without changing worker classification, companies can still reflect on:
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Transparency in earnings and algorithms
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Clarity in communication and expectations
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Fairness in performance evaluation
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Dignity in how disengagements are handled
These are not regulatory demands – they are workplace design choices.
As management scholar Clayton Christensen once noted: “The purpose of a business is not just to make profits, but to create meaning and value in society.”
In the gig economy, meaning and value are closely tied to trust.
Why the Gig Worker Conversation Matters for the Future of Work
Gig workers may not fit into traditional organisational charts – but they are undeniably part of how modern organisations function. Ignoring this reality risks creating a parallel workforce that is economically essential but structurally invisible.
For platforms, for policymakers, and for society, the question is not simply whether gig workers are employees.
It is whether the future of work can afford to exclude millions of workers from conversations about dignity, security, and experience at work.
As a platform committed to understanding and advancing people practices, Amazing Workplaces® views this not as a debate to be won – but as a dialogue that must continue.
Because the future of work will not be defined only by technology – but by how thoughtfully we respond to the human realities it creates.
Disclaimer:
This article is intended as an editorial exploration of the evolving nature of gig work and its place within the broader workforce ecosystem. The views presented are neutral and analytical in nature and do not constitute legal, regulatory, or policy recommendations. References to organisations, platforms, or public figures are for contextual discussion only and do not imply endorsement or criticism. The article aims to encourage informed dialogue on an important workforce issue.
