Times of India reports that the on-demand labour model is all but flourishing in India. Recognizing the power of a marketplace to bring on disorganized supply and demand, following the success of the cab aggregation model, various products and services ranging from laundry to last-mile delivery are also adopting a log-in, log-out approach to bring on suppliers and service providers.
And yet the touted model is showing its first signs of flounder where it all started. In the Bay Area and across the US, on-demand startups have been slammed by worker classification lawsuits from part-time contractors demanding employee benefits. Home services marketplace Homejoy, backed by Google Ventures and Andreessen Horowitz among others, shut down amid such allegations; while Uber was most recently charged with a $7.3 million fine in California. With startups on this side of the world increasingly providing protection and benefits to lure on more providers onto their tech platforms, will the model be at risk?
UK has had similar concerns with its zero hours labour contracts, Digital disruption is disrupting labour practices also.