Gig workers’ alliance raises concerns over new subscription model

Hyderabad

The International Alliance of App Based Transport Workers (IAATW), on Thursday, flagged the problems of having a software as a service model for gig workers.

According IAATW South Asia Region vice-president Shaik Salauddin, the model is being experimented with across the region. He sounded an alarm as some economy giants have announced that this could be the future of the platform sector.

Explaining how the model works, Mr. Salauddin said, “In this model, the driver pays the company to subscribe to an app for the time that they want to work, sometimes 6 hours, 12 hours, 1 week, 1 month or even for bookings worth ₹10,000. It reverses the direction of the payment transaction from company to the driver to driver to the company. This business model is not in any way accounted for in the current draft of the convention to be discussed in the ILC 2026.”

The IAATW is of the view that this model poses a threat of excluding already marginalised workers based on International Labour Organisation (ILO) standards. According to certain ILO reports, the number of people working in platform economy is estimated to be around 154 million, with between 62% and 82% engaged in the transport segment.

“The IAATW’s new subscription model report argues that the ILC standard setting process does not account for the new business models emerging in the industry, and coincides with the just released Blue Report of the ILO,” an IAATW statement reads.