Gig workers will lose their livelihoods because of Delhi’s EV transition, cries IAMAI

“Aggressive EV transition mandates for aggregators and delivery service providers could lead to significant disruptions to business activity and livelihoods of gig workers in the capital. In particular, the EV conversion targets prescribed pose a significant risk to gig workers who have heavily invested their capital, often through loans, in internal combustion engine (ICE) powered vehicles,” the industry body said in a statement.

Also read | Delhi government to soon start impounding bike taxis: Official

A draft policy paper issued by the Delhi government proposes allowing only electric bike taxis in the city, and a phased transition for delivery fleets and four-wheeler taxi aggregators. The draft Delhi Motor Vehicle Aggregator and Delivery Service Provider Scheme, 2023, issued in May, is expected to be finalised by end-July.

IAMAI represents delivery companies such as Zomato, Swiggy, Zepto, and others.

Commercial two-wheeler taxi operators have been in a legal kerfuffle with the Delhi government over the past several months now with the state government first issuing a public notice in February prohibiting plying of bike taxis in the national capital territory. This was challenged by Uber and Rapido in the Delhi High Court, which stayed the notice, allowing the bike taxis to operate.

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Earlier this month, the Supreme Court set aside the Delhi High Court order, re-imposing the ban. According to cab aggregator industry estimates, up to 80,000 riders use bike taxis every month across platforms.In its statement, the IAMAI pointed out that the transition targets prescribed by the Delhi government, seem to be based on “assumptions of ecosystem maturity rather than evidence-based research”.

“It is imperative the government recognise that the paucity of charging stations and battery-swapping infrastructure in the capital make the scheme’s ambitious targets virtually impossible to meet,” the apex internet industry association said.

While the state government has mandated immediate adoption of EVs for bike taxi operators, delivery companies have been given till 2030 to fully convert their fleets.

“Moreover, the extremely high costs associated with owning an EV make it a commercially unfeasible option for most gig workers in the capital. The target of 100% electrification of bike taxis operating in Delhi right from the outset also raises serious concerns as the lack of a moratorium for bike taxis could render numerous gig workers without work overnight,” it added.