‘Toxic, isolated work environment’: Report sheds light on plight of Uber, Ola drivers

Those who drive for companies such as Uber and Ola often don’t have insurance, and see mounting debt and dwindling incomes.
Cab driver
Cab driver
Written by:

The livelihood of Ola and Uber drivers, who are the backbone of these app-based ride hailing firms, has been adversely impacted due to the lockdown, but the question of their occupational health and safety has long been an issue. These drivers work in a “toxic and isolated work environment”, a survey conducted by the International Transport Workers Federation (ITF), Delhi Office in collaboration with Indian Federation of App based Transport workers (IFAT).

Drivers are independent contractors, and are not on the payroll of the company. They are a part of the gig economy, and are paid per task rather than a fixed compensation. However, the pay and incentive structure are not set by these contractors, but the companies themselves. 

The survey was conducted between July and November 2019 in Bengaluru, Chennai, Delhi NCR, Hyderabad, Jaipur, and Lucknow. There were 2,128 respondents, a little over half of which were from Bengaluru. 

The report, prepared by the Centre for Internet and Society, showed that a whopping 93.5% of drivers said that they did not have any insurance — accidental, health or medical. 0.15% said that they have accidental insurance, a sliver when the job involves being on the road all the time. 

Ola and Uber, over the years, have announced partnerships with different insurance providers to provide a cover to their driver partners. In 2017, Ola announced an in-trip insurance program for its drivers that included covering outstanding vehicle loan obligations, children’s educational fee till Class 10, and business loss reimbursement in case of temporary disability. Accident or health insurance does not feature in the list. 

Similarly, Uber India in 2017 announced that drivers in India would get free life and accident insurance. In 2018, it announced Uber Care stating that it would help the driver partner seek health and life insurance and micro-credit opportunities from leading insurance and credit companies. 

“Although Ola and Uber have claimed that there exist health insurance schemes for drivers and future initiatives being advertised and announced, on the ground none of these plans or measures are available to the drivers,” the report states.

Dwindling incomes have had a big impact on the lives of driver partners, leaving them with barely enough to cover expenses after paying off EMIs, penalties, commission and the cost to keep the car running and fuel expenses. The report states that drivers are left with less than Rs 20,000 to support a family. 

In a profession that once promised drivers incomes of over a lakh rupees per month, earnings have reportedly dropped from Rs 70,000-1,00,000 per month to Rs. 22,000 - 25,000 per month over the last 4 years. The report attributes this steep drop to incentives and bonuses being cut, rise in fuel prices, and decrease in per kilometre rates.

The report further claims that neither Ola, nor Uber give assistance when a driver faces harassment or violence while logged in. 

“Ola or Uber for the most part do not intervene if there is any intimidation from traffic police or local authorities, incidents of road rage, violent attack by customers or criminal elements that endanger drivers’ lives, accidents while driving etc,” a release said.

Long hours and health issues

The system also makes it hard to exit because of debt and outstanding EMIs. As incomes have dwindled, it has resulted in longer hours on the road. According to the report, drivers spend 16-20 hours on the road. 

“Drivers can’t exit their current occupational status even if they want to because they are shackled in debts and outstanding EMIs. As a result, they race every day to complete targets so that they may earn just enough to pay these liabilities,” the report states.

As per the survey’s findings, 39.8% of the respondents spent close to 20 hours in their vehicle in a day, and 72.8% of the respondents from Bengaluru, Chennai and Hyderabad drive for close to 20 hours a day. 

Due to long hours, 89.8% of the respondents have reportedly said they get less than 6 hours of sleep.

Health issues are a natural consequence of these conditions. The report states that backache, constipation, liver issues, waist pain and neck pain are the top five health ailments that these workers suffer from due to the work. 

60.7% respondents identified backache as a major health issue.

As per the report, a large number of respondents had signed up on both platforms, and tend to switch based on surge pricing or daily incentives. However, it is to be noted that among the respondents, drivers on Ola were higher. 

Longer hours on the road for drivers, the report states, have also led to another consequence: An increase in the consumption of cigarettes and tobacco as the number of work hours increase.

Service agreements

The report notes that both Ola and Uber have updated their service agreements, which absolves the company of all liability towards drivers and riders.

“Uber has also stopped using the word “partner” in the agreement and now defines individuals utilizing their app service for commercial gains as “customers”. This can be seen as Uber distancing itself from any language that would make them accountable towards providing the drivers with social security or any form of protection and acknowledging any form of “employee-employer” relationship,” it states. 

Therefore, the report states that it is essential that the government look to safeguard the interests of the drivers. 

Social security 

The code was introduced to replace laws pertaining to social security, and mentioned that the schemes may include gig workers.  While the code recognises gig workers for the first time, the report says that this code renders them more invisible as it does not use the words ‘aggregator’ or ‘driver partner’. 

“The government has proposed in the Motor Vehicle Amendment Act 2019 that the “aggregator” will be governed by the Information and Technology Act of 2000. This further insulates the companies from labour litigations and allows them a freehand in how they can operate and employ the workforce to run their businesses,” the report says.

Terming the work of these drivers to be “representative of modern slavery”, the report says that the algorithm pits against peers to maximise profit while also denying them social security and refusing to acknowledge them as employees. 

Related Stories

No stories found.
The News Minute
www.thenewsminute.com