1 in 20 Truck Drivers Flagged in Gig Economy Checks, Signalling Rising Trust Deficit in Logistics Workforce

India’s gig economy may be scaling at breakneck speed on the back of e-commerce and instant delivery, but a new report suggests the sector’s weakest link could lie in its middle-mile logistics backbone.

A study by verification platform IDfy, which provides identity verification and fraud detection solutions to enterprises, analysed workforce segments across first-, middle-, and last-mile logistics to map evolving risk patterns, has found that truck drivers are the highest-risk segment within the gig workforce, with 4.75% of candidates—roughly 1 in 20—flagged with serious red signals during background checks. The findings are based on an analysis of over 5.8 million verifications conducted over the past year.

By comparison, delivery partners in last-mile operations showed a lower risk rate of 3.04%, while dark store workers—who power first-mile logistics—recorded the lowest risk at 2.36%.

The middle-mile problem

The data points to a structural challenge in India’s logistics ecosystem. Truck drivers, who form the backbone of intercity goods movement, often operate across multiple jurisdictions, making it harder to track criminal records, accident histories, and compliance data through fragmented state-level systems.

This operational opacity, combined with direct access to high-value cargo, increases both the probability and impact of fraud.

The report cites instances where gaps in verification could have led to significant losses. In one case, a truck driver applicant attempted to mask his location using GPS spoofing and VPN tools; deeper checks revealed two active FIRs linked to cargo robbery. In another, a delivery agent created over 100 fake identities to exploit referral incentives—an attempt that could have cost companies nearly ₹16 lakh.

Growth amplifies risk

The findings come at a time when India’s gig economy is undergoing rapid expansion. The workforce is projected to grow from 7.7 million in 2020 to over 23.5 million by 2030, underlining its central role in powering urban consumption—from food delivery to quick commerce.

Separate estimates cited in the report suggest the gig workforce has already touched nearly 10 million by 2025, up sharply from about 2.5 million in 2011.

This scale is creating a multiplier effect: even marginal increases in risk rates translate into thousands of potentially high-risk profiles entering the ecosystem.

Regional hotspots and detection paradox

The report also flags sharp regional variations. Kerala and Maharashtra emerged as the highest-risk states, with overall rates of 8.42% and 7.75%, respectively, followed by Gujarat.

However, the company notes that higher detection rates may reflect stronger enforcement and digitisation, rather than inherently riskier workforces. States with better digital tracking of traffic violations and criminal records tend to surface more red flags during verification.

At a segment level, Haryana recorded the highest risk among truck drivers in e-commerce logistics networks, while Karnataka led in quick-commerce trucking risk. Among delivery partners, Kerala and Maharashtra again featured prominently across different delivery models.

Festive hiring spikes raise red flags

Risk levels were largely stable through the year but spiked during the September–December festive season, when companies aggressively ramp up hiring to meet demand.

Compressed onboarding timelines during these months often weaken verification checks, allowing more high-risk candidates to slip through. The report notes that even a 0.3% uptick in risk rates at scale can significantly increase exposure.

Trust emerges as the new battleground

“India’s gig economy runs on three pillars—speed, scale, and trust. But when hiring expands rapidly, verification often takes a backseat,” said Ashok Hariharan, co-founder and CEO at IDfy.

The implications go beyond isolated fraud cases. Industry stakeholders say a single lapse can trigger high-value cargo theft, food safety concerns, or reputational damage, particularly as gig workers increasingly represent brands in direct customer interactions.

A shift towards stronger verification

With the gig workforce set to cross 23 million by the end of the decade, companies are now investing more aggressively in AI-led verification systems, real-time monitoring, and digital compliance tools.

The report suggests that as the sector matures, trust infrastructure will become as critical as delivery speed or network scale—especially in a business model where millions of daily transactions depend on the reliability of a distributed, often transient workforce.

For India’s gig economy, the message is clear: scaling fast is no longer enough—scaling securely is the next challenge.