How gig economy start-ups and social enterprises are facing the Covid-19 lockdown
The gig economy is probably the worst hit by the nation-wide lockdown because of Covid-19. Visuals of thousands of migrant workers walking huge distances to somehow reach their villages are still fresh in people’s minds. And, ventures that employ a large number of blue collar workers have seen their plans go for a toss. Cab aggregators such as Ola and Uber, food delivery companies such as Swiggy and Zomato, online grocery ventures BigBasket and Grofers are among those who employ a large number of these blue collar workers. Some of them have re-started business, albeit on a limited scale.
You might also be interested to read: Coronavirus Economic Relief 2.0: FinMin Readying Package To Help Economy Get Back Up When Lockdown Ends
Along with the gig economy, start-ups catering to that segment as also social enterprises found their businesses disrupted. Their investors have been backing them and advising them to conserve cash for as long as possible. Besides thinking of ways to keep the venture alive, the founders continued looking for new opportunities.
Take the case of DriveU, a Bengaluru-based venture that offers drivers on demand. It works with about 25,000 drivers across the country, offering drivers on hire to individuals and businesses. Ramprasad Shastry, co-founder and CEO, DriveU, says they pay their drivers daily and since the lockdown was announced from March 24 midnight, there has not been any income for the drivers.
Source: The Hindu BusinessLine
