The gig economy model has been a driving force in the food delivery industry, making it difficult for the delivery workers to secure their rightful earnings.
Additionally, food delivery platforms have faced challenges in increasing order delivery fees beyond a certain point, creating a complex dilemma for all stakeholders involved. The project assesses and ranks platform companies based on their adherence to fair labor practices to promote better standards.
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Fairwork India’s 2023 report has shed light on a critical issue in the food delivery industry in India, where none of the major food delivery platforms were found to provide hourly local minimum wages to their delivery workers after accounting for fuel and other expenses.
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However, IIT Delhi’s research team comprising Prof. Abhijnan Chakraborty, Prof. Sayan Ranu, Prof. Amitabha Bagchi and PhD scholar Ms. Anjali have developed a unique approach, that not only guarantees government-mandated minimum wage compensations for delivery workers but also seeks to minimize platform costs while ensuring customer satisfaction.
The scheme ensures that all delivery agents receive income guarantees based on government-mandated minimum wage rates, allowing them to earn a fair and consistent income. The scheme takes into account worker-specific factors and performance metrics, beside demand-supply dynamic in particular localities, to provide personalized guarantees tailored to each delivery worker.
While online food delivery companies often cite the gig nature of the work and operational constraints as barriers to implementing local minimum wage guarantees, the novel solution introduced by the IIT Delhi researchers promises to address the issues.
