Surging fuel and vehicle costs reshape gig hiring

Delhi: As fuel and vehicle operating expenses soar, India's gig economy workers are becoming increasingly discerning about the jobs they pursue. Many are gravitating towards roles that offer stable pay or reduced running costs, prompting employers to ramp up incentives, electric vehicle (EV) opportunities, and fixed-pay positions to attract and retain delivery personnel, according to recruitment experts.

The pool of talent available for delivery-based gig roles has contracted by 5-10% over the past four months, stated Deepesh Gupta, head of business at Adecco India. This workforce shift does not result in unemployment; instead, workers are moving into sectors that provide more predictable income and lower work-related expenses, such as manufacturing, warehousing, retail, and sales.

Gig workers are highly adaptable and often transition between front-line sectors based on overall income potential and job viability, explained Gupta.

Data from Apna.co indicates a 60% year-on-year increase in job postings for delivery, driver, and logistics roles in the first quarter of FY27, while positions with lower operating costs or greater income certainty experienced much stronger growth. Electric vehicle-related job postings surged by 593% year-on-year, warehouse jobs grew by 91%, and fixed-pay opportunities expanded by 205%.

These jobs have garnered significantly more interest from candidates. EV postings received 62.5% more candidates per opening than the overall delivery segment, fixed-pay roles drew 244% more interest, and warehouse jobs attracted 350% more applications, according to Apna data. For workers, the critical factor now is distinguishing between headline earning potential and guaranteed income, asserted Kartik Narayan, CEO of jobs marketplace at Apna.co.

The rising cost of fuel, particularly since the Iran-US conflict began in February, has led to a 7.5 rupee increase per litre, intensifying operating expenses for home delivery services, which delivery partners typically bear. Moreover, union road transport and highways minister Nitin Gadkari recently informed parliament that ethanol blending in petrol could reduce fuel efficiency by 2-6%, depending on the vehicle and its age.

For employers, including giants like Flipkart, Eternal, Swiggy, and Uber India, this escalating cost of maintaining delivery workers on the road is a pressing concern. However, as of the latest press time, these employers have not responded to ET's email inquiries.