The increasing trend of app-based services and doorstep deliveries has led to a surge in the number of gig workers, especially in the delivery space. Previously, they relied heavily on the use of internal combustion engine (ICE) vehicles, especially two-wheelers, for deliveries.
These asset acquisitions, unfortunately, burned a hole in their pocket due to the increasing fuel prices. Some gig workers were forced to use bicycles to earn a living, braving adverse weather conditions, leading to inhumane working conditions.
However, recent trends show a shift towards adopting electric vehicles (EVs) among delivery partners and gig workers. This shift is driven by the global push by the aggregator platforms to reduce greenhouse gas emissions and adopt sustainable transportation options. Most importantly, a delivery person is de-risked from the impact of fuel price escalation.
There has been a significant rise in the companies offering electric 3-wheelers and electric 2-wheelers as a service for last-mile deliveries providing a cheaper alternative for delivery partners. EVs not only prove as a sustained source of income for them but has other potential benefits too.
Why Gig Workers Prefer EVs
A major advantage of EV fleets is the potential for cost savings. EVs generally have lower operating costs compared to traditional gasoline or diesel vehicles. They require less maintenance, as they have fewer moving parts, and the cost of electricity is often lower than that of fossil fuels.
Lower operating costs can translate into higher earnings for delivery partners and gig workers, positively impacting their livelihoods. Delivery partners are easily earning Rs 18,000 to Rs 35,000 per month with the use of EVs for deliveries and can save on the high fuel cost.
This fixed income source, along with other insurance coverages, is bringing a sense of stability among the driver partners. With the number of rental EVs available in the market, the accessibility and affordability of EVs has increased in the last two years, creating new avenues for employment within the gig economy.
EVs also help combat noise and air pollution, reduce greenhouse gas emissions, and create a more sustainable and cleaner environment for delivery partners and society.
Battling Range Anxiety
Range anxiety remains challenging for delivery partners relying on EVs for timely task completion. Insufficient battery range during their delivery routes can affect their productivity and efficiency.
Setting up charging networks, battery swapping stations and proper delivery route planning can help address this problem. It necessitates collaboration between the companies, charge point operators, and the government to set up adequate charging infrastructure.
Fleet operators are also switching to technology-based platforms to facilitate the charging and onboarding process, making the transition to EVs smoother for delivery partners.
Shifting from traditional vehicles to EV fleets may involve a learning curve. They must adapt to new technologies, charging routines, and vehicle features. Proper training and support are crucial to help them navigate this transition and ensure they can maximize the benefits of electric vehicles.
EV fleets offer potential advantages in terms of cost savings, environmental benefits, noise reduction, and improved working conditions however, the impact of this transition on delivery partners and gig workers can vary depending on factors such as charging infrastructure, range anxiety, and the support provided.
By addressing these challenges effectively, EV fleets have the potential to make life better for delivery partners and gig workers, providing them with a sustained income source and promoting sustainable and more satisfying work experiences.
-- Maxson Lewis, co-founder and managing director of Magenta Mobility
