NCAER for less regulation in food delivery segment

Trade-off

♦ NCAER observes that people use this work not as a career option

♦ But as a fall-back option in times of need

♦ Need for improving social security

♦ Strict regulation will take away flexible nature of work

Favoring light regulation in the food delivery platform industry, a report by the prominent think-tank National Council of Applied Economic Research (NCAER) has recommended a ‘balanced approach’ so that the nature of the work is kept intact, while simultaneously improving the condition of the workers.

A recent NCAER report, Socio-economic Impact Assessment of Food Delivery Platform Workers, said, “there is a trade-off between regulation and flexibility in food delivery platform work. Relative easy entry and exit characterizes this work. People use this work not as a career option, but as a fall-back option in times of need or for augmenting incomes.”

Tight regulation will take away the flexible nature of the work, thereby taking away an easy option for work where it is hard for youth to find work, the report said. “The answer lies in improving social security of the workers and recognizing their skills learned, while working at the platform, which helps them move on successfully.” Food delivery platform workers are not strictly employees; this means that they are entitled to any employer-given benefits. Besides, the average duration of food delivery platform work is 14.2 months. “This makes it very challenging for any one company to give social welfare support,” the NCAER report said.

Therefore, the government is the best medium to provide social security. Platform companies may provide additional revenue to the government to finance social security in a centralized fashion.

Platforms can tie up with the public-sector National Skills Development Corporation and provide skilling certificates to platform workers along with recording their current ratings. The NSDC’s Recognition of Prior Skilling or RPL programme can be leveraged here. This will help workers get their next job, the report said.

Municipalities need to improve health facilities to enable walk-ins. One does not always need a hospital stay (and therefore not health insurance), but just first aid, the NCAER report said. “Platforms can make information available about doctors who provide such walk-in facilities in key neighborhoods.”