Deepinder Goyal has developed his own arguments in the midst of heated discussions about gig work, defending the industry and sharing his opinions on its applicability. Here are the specifics.
The industry has been at the center of discussions ranging from political commentary to extensive criticism on social media as the rapid growth of quick commerce in India continues to spark issues.
Netizens have also criticized delivery services like Blinkit, Zepto, and Instamart, while political figures like Raghav Chadha have voiced concerns. Deepinder Goyal, the CEO of Zomato, has been a well-known public figure in the face of this mounting criticism, standing up for the quick-commerce model.
Goyal reaffirmed his belief that the gig economy only "exposed" inequity to those who had the luxury of avoiding it in a thorough post on X (formerly Twitter).
"This is the first time in history at this scale that the working class and consuming class interact face-to-face, transaction after transaction," he stated, elaborating on this claim. We are uncomfortable with the gig economy because we are unhappy with ourselves. We want these individuals to take responsibility for our actions so that we won't feel as guilty about obeying their commands.
The head of Zomato connects these arguments to guilt
He viewed the gig economy as a social mirror, going beyond logistics and profits, contending that for centuries, class divisions prevented the rich from seeing the labor of the poor. The wealthy, meanwhile, ate the results of this labor without ever facing the faces or the weariness that went into it.
He added that since the impoverished are no longer hidden away and instead approach our doorsteps, people are now compelled to face that "guilt" because there was no direct encounter and, hence, no personal guilt. "After fuel, bike rent, and app cuts, that ₹800 order could cover their entire day's earnings." Because the inequality is no longer abstract, we tip uncomfortably or avoid making eye contact. It is.
Deepinder Goyal added that because labor was hidden, the wealthy could enjoy luxury without experiencing "moral discomfort" prior to the gig economy. But now that the gig economy has emerged, "every doorbell ring is a reminder of systemic inequality." Debates blow up because of this.
"You don't solve inequality by banning gig work, but"
His main contention is that prohibiting gig employment eliminates livelihoods rather than resolving inequality.
According to Goyal, these jobs either vanish or are forced back into the informal economy, where responsibility is even lower and rights are less, rather than immediately becoming formal, protected employment.
He defended gig employment by saying, "Over-regulate it until the model breaks, and you achieve the same outcome through paperwork instead of slogans: the work evaporates, prices rise, demand collapses, and the people we claim to protect are the first to lose income."
His remarks were made just two days after delivery workers connected to e-commerce platforms staged demonstrations in a number of cities, calling for increased compensation, safer working conditions, and social security benefits.
The center's new draft regulations allow gig workers to get social security.
The government pre-published draft guidelines on the four labor laws on Thursday, detailing the eligibility of benefits for gig and platform workers, amid the growing controversy surrounding gig work.
In order to receive the benefits of the labor codes, gig or platform workers must be employed as a single entity "for not less than 90 days with an aggregator, or in the case of multiple aggregators, not less than one hundred and twenty days, in the last financial year," according to the draft rules, as previously reported by Mint.
On Thursday, the four labor codes—the Code on Wages, 2019; the Industrial Relations Code, 2020; the Code on Social Security, 2020; and the Occupational Safety, Health, and Working Conditions Code, 2020—were announced.
The new labor codes in India have officially recognized gig workers for the first time, placing them under the country's social security system.
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