Surviving the platform economy: Challenges faced by workers in the online labour market
Bangladesh is the world's second-largest supplier of online labour, accounting for 16% of the global market, trailing only behind India
The platform economy is typically defined by its association with 'short-term' jobs, such as freelance or app-based work where individuals function more as clients than permanent employees. Popular examples include apps like Foodpanda and HungryNaki and ride-sharing apps like Pathao and Uber.
Although these food delivery and ride-share workers are the first examples of platform workers that might come to mind, freelancers such as graphic designers or data entry clerks who sell their labour to foreign corporations constitute a huge portion of the platform economy workforce.
According to a study by Oxford Internet Institute (OII), Bangladesh is the world's second-largest supplier of online labour, accounting for 16% of the global market, trailing only behind India.
The platform economy is growing fast in Bangladesh, as exemplified by the app-based ride-sharing market. A study from 2019 suggested that the digital ride-sharing business has grown to $260 million and achieved six million rides a month. Within the next few years, the market value of ridesharing businesses is expected to rise significantly.
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In Western countries, platform work is often perceived as a part-time source of income for students. However, in Bangladesh, many workers rely exclusively on platform work for their livelihoods, working more than 40 hours a week.
So, what makes platform work supposedly superior for these workers?
In these setups, the computers, and not human managers, control the workers. Everything from monitoring, rating and rewarding the workers is determined through computer algorithms.
These programmes guide the workers and keep everything running smoothly. Supporters say this computer-led system is efficient – it gives quick, accurate feedback to workers without the mistakes humans might make.
The absence of human managers is also supposed to make these services cheaper for consumers, resulting in a win-win situation for everyone.
Moreover, platform work is easy to get into – you just have to sign up online. It offers flexible hours, freeing people from the shackles of a 9-5 routine. Additionally, the pay can be better than regular jobs, making it tempting for many.
There is evidence that Indian workers on Upwork, an online platform that connects businesses with freelancers, feel freer and more autonomous than under traditional firms.
These freelancers take up work of their own volition and on their own time instead of conforming to the commands of their bosses.
Additionally, evidence suggests that expanding the platform economy can lead to higher pay rates than traditional employment systems. The minimal barriers to entry in the platform economy make it a convenient avenue for individuals to earn swift income, offering an effortless opportunity for quick cash.
Having the autonomy of logging in and logging out at their own wish is what makes this form of work so appealing.
However, this 'autonomy' might just be a mirage.
In these platforms, every move the worker makes is meticulously tracked, from task completion rates to time spent on each job. If their productivity drops, their ratings can be downgraded, leading to fewer job offers.
This situation makes their work precarious, causing their positions to become more unstable. Despite the idea of autonomy, these workers find themselves far from truly being in control.
Moreover, beyond these direct control methods, algorithms utilise subtle techniques called 'nudges' to influence worker behaviour.
Uber, for instance, meticulously tracks its drivers' acceleration, braking, and speed. If drivers display erratic driving behaviour, the algorithm recommends them to take a break, prioritising safety.
However, these 'nudges' are not always beneficial.
Additionally, 'forward dispatch' assigns drivers to the next ride even before completing their current one. Although this feature can be paused, it automatically reactivates when drivers log out and log back in, subtly pushing them to continue working without a pause.
These constant nudges make drivers feel powerless. Evidence from India highlights the toll on platform taxi drivers, who experience fatigue, stress, and sleep deprivation due to these pressures.
Thus, in reality, the 'freedom' appears more mythical than real. The autonomy promised by the platform economy is, oftentimes, a carefully constructed illusion, as shown by the stark contrast between the ideal and the actual experience of platform workers.
Moreover, labourers are often classified as 'clients' rather than 'workers,' which leaves them vulnerable, as they are often not protected by workplace labour laws. This situation allows companies to exploit this loophole for their benefit.
A 2023 study by Fairwork Bangladesh titled 'Labour Standards in the Gig Economy' evaluated the working conditions of platform workers in various platform apps in Bangladesh.
The study revealed that the monthly wages of most platforms fell significantly below the living wage in Dhaka, leaving workers struggling to make ends meet. Alarmingly, 89% of platform workers in Bangladesh expressed concerns about their safety and security while on the job.
Furthermore, the report highlighted a lack of support for workers with arbitrary penalisation and deactivation. Most platforms offered no assistance, leaving platform workers without recourse.
Additionally, termination often occurs without any human consultation or explanation, creating an environment of uncertainty and insecurity for workers, who are left without job security and basic employment rights.
Projects like Fairwork have tried to enhance platform workers' working conditions in this country. This involved engaging with digital labour platforms and addressing worker rights deficiencies.
Fairwork reported that some platforms have been receptive to understanding their shortcomings and taking corrective actions. These efforts include regular consultations with platform workers and labour organisations, extensive fieldwork, and interviews to capture the experiences of those in the field.
One significant challenge is classifying platform workers as independent contractors under Bangladesh labour law. This classification means these platforms are not legally obligated to ensure a minimum wage or other benefits for their workers. Hence, revising the labour law to include platform workers under its purview is crucial.
Another major issue is that unions have thus far been unable to penetrate the platform economy. Presently, only one digital platform worker union operates in Bangladesh. One hurdle to unionisation lies in classifying platform workers as independent contractors.
Moreover, the digital nature of work complicates matters further, making it difficult to gather the 20% worker signatures required to unionise, as required by the Bangladesh Labour Act. Therefore, amendments that deal with these barriers must also be considered.
At the end of the day, the emergence of the platform economy has revolutionised the service sector, introducing efficiency and flexibility that would not have been possible under traditional modes.
However, in the present landscape, a significant portion of platform work is characterised by low pay, long working hours, and extensive control. Therefore, reforms are essential to realise the full potential of what the platform economy promises.
Ebney Ayaj Rana is a YPF Fellow for Technology and Innovation. He is a PhD student at the Cornell ILR School studying technological change and the future of work and organisations.
Anannyo Samayel is a high-school graduate and the Lead of the Youth Policy Forum's Foreign Policy Department.
Disclaimer: The views and opinions expressed in this article are those of the authors and do not necessarily reflect the opinions and views of The Business Standard.
