Decoding Platform-based Gig Work: Opportunities and Challenges for Sik

Decoding Platform-based Gig Work: Opportunities and Challenges for Sikkim

MARINA RAI Assistant Professor, Department of Economics, Sikkim Alpine University

With the advent of the digital era and rapid
urbanisation, new forms of work have emerged globally.Alongsidetraditional
economic activities, gig work has gained widespread acceptance, especially in
urban India. The term “Gig” comes from the slang term for individual
performances by artists and musicians, who are paid remuneration per-performance
rather than a regular salary. Gig work refers to task-based, short-term piecework
for which payment is made per assignment or “gig” rather than salaried
employment.According to the Code on Social Security, 2020, Ministry of Labour
and Employment, GoI, “A “gig worker” means a person who performs work or
participates in a work arrangement and earns from such activities outside of a traditional
employer-employee relationship.”

Types of Gig Work

NITI Aayog Report (India’s Booming Gig and Platform
Economy June 2022) classifies gig workers into platform workers and
non-platform workers. Platform workers are those workers who perform tasks
through mobile apps or digital platforms. Examples of platform workers are
riders associated with Uber, Ola, Rapido apps who get ride requests through
these apps, executives who pick and deliver orders via Swiggy, Zomato, Blinkit,
Instamart, etc, courier delivery workers of Amazon, Flipkart, Myntra, etc,
task-based workers who rely on Urban Company, Yes Madam, Pronto, etc., and
freelance professionals who get projects through online platforms.Non-platform
gig workers are typically casual or self-employed workers in traditional
sectors, working either part-time or full time, like daily wage construction
labourers, factory helpers hired on casual basis, independent tailors,
designers, consultants and freelancers who find clients directly and not via
apps, part-time tutors, plumbers, electricians, carpenters, mason etc working
through local contacts, comedians, musicians, performing for some stipulated
hours.

Platform-based Gig Work

Non-platform work,along with other traditional economic
activities,existed long before the digital era,while platform work became prevalent
only after the widespread adoption of the internet. Mobile app-based service
platforms,such asOla, Uber, Amazon, Flipkart, Myntra, Swiggy, and Zomato,were introduced
to meet diverse urban consumer needs.However, these platform-based gig
workacquired furtherimpetusduring and after the COVID-19 pandemic.The shutdowns,
coupled with insecurity and uncertainty brought by the pandemic, triggered the
quest for moreonline services catering to the urban population.This environment
catalysed a surge in digital platforms, specifically instant/quick delivery
services including Blinkit, Instamart, Zepto and others.Platform-based gig work
is characterised by temporary contracts, independent assignments and flexible
schedules, all co-ordinated through digital labour platforms. These
online digital platform systems bridge the gap between service providers and
clients or customers, enabling connections regardless of physical location.
Platform-based gig work has transformed the economy by either acting as new
middlemen for old services or creating entirely new jobs.

Gig
Economy in India

In
post-pandemic India, the gig economy hasundergone a significant expansion,
altering traditional labour structures and emerging as a vital segment of the
domestic workforce. Recently, the Economic Survey of India 2025-26 estimated
that gig workers increased from 7.7 million in 2021 to 12 million in fiscal
year 2025. NITI Aayog Report (June 2022) predicts that gig workers in India are
expected to increase to 23.5 million by 2029-30, constituting6.7 per cent of
the non-agricultural workforce and 4.1 percent of the overall workforce.The gig
economy is flourishing not just in major metropolitan cities, but has also
taken root in smaller towns and cities across the country.

Platform-based
gig work and Labour market in Sikkim

Sikkim
is not an exception to the rise of the gig economy. When I relocated toNamchi in 2023, I noticed a dearth of instant delivery
services,unlike the city I was used to living in. Although Amazon, Flipkart and
other e-commerce companiesdeliveredin the area, there was only one quick-delivery
service J Pani. It is a local venture that delivers anything a customer orders,
such as food or medicine,within the town area for a set fee. But over the span
of two years, several outlets of various national and multinational companies,including
KFC, Domino’s, Zomato, and Vishal Megamart, appeared in Namchi.Smart Bazaar,
which was operational early on,launched aquick delivery service alongside these
stores. Similar experiences are shared by my friends who reside in other towns
of Sikkim.

According to the Annual Periodic Labour Force Survey
(PLFS) 2025, the size of the labour force (working or seeking or available for
work) was 71.6 %of the population (above 15 years of age) in Sikkim.
Further,the overall unemployment rate was 4.2 % in Sikkim, i.e., roughly 15,960
workers were unemployed in 2025. The report also reveals that unemployment in
urban areas (5.3%) is higher than in rural areas (3.9%). Gig work has the
potential to address thisunemployment problem inurban Sikkim. Also, with the
increasing prevalence of gig work in Sikkim, many people have turned towards it
as a means to secure their livelihoodsorsupplementtheir income. While there are
no available estimates of the size of gig workers in Sikkim,asmall-scale sample
study conducted in NamchibyMs Pabitra Rai, a student of the Economics Departmentin
my university, revealed that most individuals engaged in gig work were below 40
years of age,indicating greater youth participation in the gig economy.

Benefits
of Platform-based Gig work

Some
features of gig work that primarily benefit the youth, students, and those
seeking flexible income are:i. Gig work provides flexible schedules and work
autonomy.Workers can decide when,
where, and how much they want to work. Therefore, it is beneficial for students,
homemakers, people with disabilities, single parents, retirees, and freelance
workers who need to supplement their primary income. ii. Lower entry barriers in
gig work makeit easier and less time-consuming for workers to join digital
platforms. They require very minimal qualifications for workers to join platform
jobs, e.g., a smartphone, internet access,a two-wheeler (bike/cycle), basic
literacy, etc. iii. Gig work providesopportunities and livelihood support for
millions of workers in semi-urban areas and non-industrial hubs where formal
jobs are scarce and require high skillsets. iv. Gig workers also gain valuable employment
skills, exposure to digital tools, customer service management, better time
management, and navigation skills.v. Since work is not fixed to any specific
office location, gig workers can switch to any other suitable location
depending on their convenience and preference.

Disadvantages of Platform-based Gig work

Despite some apparent benefits of gig work,some of
its characteristics pose formidable challenges to the workers. Major
disadvantages of gig work are:i. Gig workers are not recognised as ‘workers’ by
platform companies. Instead, they are termed as
‘freelancers’, ‘independent contractors’ or ‘platform partners’, thereby
allowing the platform company to avoid all mandatory economic and legal
responsibilities towards workers under various labour laws.Hence, gig workers lack protection under
labour laws and are not eligible for any social security benefitssuch as
Provident Fund (PF), Employee State Insurance (ESI), gratuity and pension. So,
any workplace-related accidents or uncertain illnesses often mean a complete
loss of income. ii. Both workload and income are highly unpredictable for gig
workers. Earnings from gig work often fluctuate depending on customer demand,
seasonal trends, intra-worker competition, and platform algorithms. Excessive
reliance of platforms on customer ratings for performance evaluation of gig
workers further exacerbates their vulnerabilities. Furthermore, gig workers are
heavily controlled and managed by opaque algorithms of platform companies. iii.
Most gig work contracts are often one-sided and can be terminated abruptly by
the platform without any notice period or severance pay. iv. Many gig workers
face a high-risk work environment. For instance, delivery and ride-hailing
workers face high risks of road accidents. Workers (especially women) often
face safety risks from customers and lack support from platforms inemergencies.
v. Due to the nature of varying workplaces, a lack of a fixed workplace and an isolated
work environment, workers cannot easily form unions to negotiate for better pay
and decent working conditions with platform companies.

Need for Regulatory Framework

Although platform gig work holds substantial
potential to boost the economy, it is not devoid of problems.Some of its unique
features might benefit workers, while others could pose serious challenges for
workers that cannot be ignored.In response to pressure from various workers’ organisations,
different states (Telangana, Rajasthan, Karnataka, Jharkhand) have passed
comprehensive regulations governinggig work in India. These laws clearly define
the nature and scope of gig workers, ensuring they receive basic labour rights,
protections and social security schemes. They alsoestablishedlabour welfare
funds,mandated proper inquiry before terminationsand guaranteed gig workers’
accessto grievance redressal mechanisms.Among the four States, the Telangana
Platform-Based Gig Workers (Registration, Social Security and Welfare) Act,
2026 framework is the most comprehensive andreadily operationalizable, and thus
can serve as a model for formulatingstate-specificregulations for gig work. The
gradual expansion of the gig economy in Sikkimthus underscores an imperative
need to formulate a robust regulatory framework.