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India’s gig debate misses a key point: Better wages for delivery agents will aid the economy without hurting platforms

India’s gig debate misses a key point: Better wages for delivery agents will aid the economy without hurting platforms

India’s gig debate misses a key point: Better wages for delivery agents will aid the economy without hurting platforms


What platforms pay their delivery agents is a pass-through. In other words, their earnings do not come from squeezing riders. If all companies had to pay, say, 5% more than what they do now, consumers would simply have to shell out that much more. This would not dent platform margins on those deliveries. Such a payout hike would need all platforms to pay 5% extra, without any player trying to grab orders by offering order placers a cheaper deal.

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