ECONOMYNEXT – Major gig worker companies violate fundamental worker rights, often claiming to offer “flexibility” while paying less than the local minimum wage, Human Rights Watch said in a report released this week.
“Digital labor platforms have created a business model that evades employer responsibilities while keeping workers under tight algorithmic control, driven by opaque and unpredictable
decisions,” Lena Simet, senior researcher on poverty and inequality at Human Rights Watch, said.
“They promise flexibility but, in reality, they leave workers at the mercy of unstable and subminimum wages, little social protection, and in constant fear of termination without recourse.”
The HRW report, “‘The Gig Trap’: Algorithmic, Wage and Labor Exploitation in Platform Work in the US” focuses on 7 major companies: Amazon Flex, DoorDash, Favor, Instacart, Lyft, Shipt, and Uber.
“Apps and platforms are designed to keep gig workers on the job for long hours and low pay, and dynamic pricing algorithms make it extremely difficult for them to plan their schedules and manage their earnings.”
Low wages, algorithmic control and barriers to unionizing trap many workers in economic insecurity, even as multi-billion-dollar companies expand their market share and revenue, Human Rights Watch found.
Companies like Uber use algorithms with opaque rules to assign jobs and determine wages, which prevents workers from knowing how much they will earn until after a ride is complete.
Workers are classified as “independent contractors” rather than employees, allowing the companies to avoid complying with local minimum wage laws, overtime pay, and contributions to non-wage benefits.
For workers, it means providing their own vehicles, fuel, insurance, and maintenance.
Digital labour platforms are seen as freelance or part time workplaces but for many in Sri Lanka it’s a full-time job.
Sri Lanka’s major gig worker companies Uber and PickMe are popular options for daily travel and food delivery in Colombo and other cities.
A study by the Centre for a Smart Future shows 50 percent of gig workers in Sri Lanka pursue this as a full-time career.
“The Online Labour Index highlighted that as of 2024, Sri Lankan gig workers ranked among the top 15 countries worldwide when accounting for the share of workers on major online freelancing platforms,” the Centre for a Smart Future said.
Uber
Uber, a US-based multinational digital labour platform offering rides and delivery services is increasingly popular in South Asian countries.
“You earn a fare for every completed trip,” the Uber website said.
Uber has introduced Uber Pro a partnership to offer “discounts” on fuel, insurance, and vehicle maintenance.
“There are lots of other great UberEats Pro rewards you can continue to enjoy — like cashback on gas with the Uber Pro Card, a Costco Gold Star membership at no cost for the first year, and 100% tuition coverage at Arizona State University,” according to the Uber website.
Uber Pro has not reached Sri Lanka yet.
However, Uber in partnership with Allianz has introduced an insurance scheme to both the driver and passenger.
PickMe
PickMe drivers are getting more rides and earning more money with a lower price than standard tuks at the moment, founder Jiffry Zulfer told a forum organized by Sri Lanka’s Advocata Institute.
PickMe revenues surged 40 percent to 1,524 million rupees in the December quarter while the operating expenses rose 20 percent to 464 million rupees.
“Enjoy a Monthly Income of 100,000 Rupees & upwards,” PickMe said on its website, promising 3,000,000 rupees life insurance cover, daily and weekly incentives, and having to pay lesser commission while receiving higher earnings.
However, social security like pension is not accessible to gig workers.
“Digital labor platforms have created a workforce with none of the rights and protections that workers have fought for over decades,” Simet said. “As more people are drawn to platform work to make ends meet, federal and state authorities should step up to guarantee them the protections they are entitled to, and should work with the International Labour Organization to establish a binding global standard for platform work.”
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Dealing with the gig economy
International human rights law requires just and favorable working conditions for all workers, including workers for digital platforms. (Colombo/May17/2025)
