Even as lockdown restrictions began easing from May, around 70% of transport and delivery workers were left with zero net income, while 20% earned between Rs 500 to 1500 per week, a survey by the Indian Federation of App-based Transport Workers (IFAT) has revealed. This is what driver and delivery workers are left with after paying off fuel expenses, EMIs and commissions for the week. Transport and delivery workers here are Ola/Uber drivers and delivery executives who deliver for Swiggy, Zomato, Rapido, Dunzo, etc.
With barely any income through the pandemic, nearly 90% of transport and delivery workers didn’t receive any grocery or food assistance, while nearly 85% didn’t receive any financial assistance from the companies and governments, the survey showed.
While most of these drivers had no earnings during the lockdown, the average income of workers who worked in the week commencing April 15, 2020 was less than Rs 2500. 57% of the respondents claimed that they earned between 0 to Rs 2250 per week, the survey revealed.
Making matters worse, these workers had an average monthly EMI between Rs 10,000 to 20,000 for their vehicles, the report stated.
These findings are part of five surveys conducted by IFAT between March-June 2020, with support from International Transport Workers Federation (ITF) in Asia Pacific and the Centre for Internet and Society, India (CIS).
These surveys looked at income levels and loans administered, financial relief from companies and governments during the lockdown, and income levels as the economies started opening up.
The survey states that while companies had announced financial assistance programmes, including through donations collected by customers, there was no transparency in disbursement of funds.
The surveys revealed that the main concerns of workers have been bearing essential expenditure such as ration and rent, crippling burden of repaying EMIs with constant nudging from banks and credit firms, and being able to repay compounded interest on EMIs in cases where moratorium was availed.
With regard to receiving financial or food assistance from companies, respondents said that there was absence of clear criteria for eligibility, leading to random disbursement.
In the case of Ola, while the report states that waiving off the rental amount for leased vehicles during the lockdown would have been a welcome move, these drivers were asked to return their vehicles and there was no clear communication on how they could get repossession of the vehicles once restrictions began easing, “causing great anxiety among workers”.
Ola took back vehicles of drivers who weren’t able to afford to pay lease rentals and sources in the company say that Ola is looking to return vehicles to these drivers once demand returns in that geography.
Difficult processes in accessing relief was also a concern, the survey showed.
“Zomato had pledged that it would reimburse the cost of grocery, ration and other essentials a rider or delivery partner purchases, but the bills need to be GST compliant. For a Zomato driver who earns less than Rs 15,000 per month it is preposterous to expect that they shop their daily essentials from shops that print GST compliant bills. Even when workers may have been eligible, the procedure to access any benefits from the company was so convoluted that only a handful of individuals could actually secure them,” the survey claims.
Based on the various surveys, discussions with delivery and driver workers, IFAT says that some of the demands of these workers are reduction in commissions, compensation for loss of income over the past few months, adequate protective equipment and health insurance cover to all drivers and increased transparency in disbursement process of relief, and the criteria for selection of beneficiaries.
They also reportedly want the compounded interest to be waived on EMIs for the three months of moratorium on loan repayment, among others.