NCAER Report: Food Delivery Worker Incomes Drop 11% in 3 Years

A recent study by NCAER found that the money earned by food delivery workers every month decreased by 11% over the span of 3 years. This happened because things became more expensive (inflation) and they had to spend more money on fuel. So, their actual income went down.

A new report from the National Council of Applied Economic Research (NCAER) revealed that the amount of money food delivery workers earn each month went down between 2019 and 2022. This happened because prices went up (inflation) and they had to spend more on fuel. The report showed that those who worked long shifts (11 hours) made 11.1% less money in 2022 compared to 2019. For workers with shorter shifts (5 hours), their income went down by 10.4% during the same time.

Short-shift workers' working hours stayed the same, but those on long-shifts experienced a 19% increase to 10.9 hours per day from their previous 9.3 hours. The report "Socio-economic Impact Assessment of Food Delivery Platform Workers" revealed that platform workers felt their real earnings had decreased due to inflation. Long-shift employees found it tougher to reach income goals because of more traffic and higher competition.

NCAER conducted a study about food delivery workers and found that the income of all workers has decreased. This also affected the ability of long-shift workers to cover their monthly expenses. The study looked at 924 workers from one company in 28 cities. They considered whether the workers were currently active or had left the platform, how long they had been working, and the types of shifts they did.

Bornali Bhandari, who is a professor at NCAER, mentioned that platform work has helped make jobs more official by giving workers advantages like insurance for accidents and clear contracts based on tasks. She said that even though people don't earn a lot from platform work and sometimes they lose money because expenses go up, food delivery and similar jobs provide a way for those who are struggling to earn money independently. It's like a backup plan for them.

The report says that food delivery apps have given jobs to young people in smaller cities. Most of these workers are from their own hometowns, and 84% of them are below 35 years old. People who work longer hours on these apps work about 27.7% more than young men in regular jobs, but they only earn 5% more money in the end.