The Impact of COVID-19 on the Gig Economy

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The Impact of COVID-19 on the Gig Economy

The COVID-19 health catastrophe is an extraordinary blow that is affecting people’s lives and livelihoods across the world. Its impacts are likely to be felt not just in the near term, but also in the medium and long term. The severe health consequences have been matched by dramatic losses in economic activity and labor market turmoil.

 

Fear of infection, public guidelines, and widespread uncertainty caused a significant reduction in economic activity and disrupted global value chains, resulting in a deep and broad shock to the labor market. Furthermore, state-imposed lockdowns and business closures have had severe consequences, with millions of workers in numerous nations seeing a reduction in, or entire loss of, their jobs.

 

As industries were required to shut down to safeguard workers’ health and promote compliance with mitigation and containment rules, many countries implemented widespread job retention and/or income support systems to assist workers. Employers reorganized their operations whenever possible to allow for remote working arrangements.

 

Participation in the gig economy has developed significantly in recent years and has expanded dramatically since the commencement of the coronavirus epidemic, owing in part to an increased reliance on gig workers to deliver essentials to consumers’ homes.

 

India has 15 million gig workers, accounting for around 40% of all freelance tasks available globally, and this figure is continuously increasing year after year. A considerable share of the country’s school dropouts, college students, and those who are only partially employed seek part-time work to support themselves and their families.

 

One of the most significant advantages of the gig economy is the flexibility it provides, both in terms of working hours and employment types. In fact, before the epidemic, over 70% of gig workers reported that they chose to work in the gig economy because it provided more flexibility and, in some cases, higher pay than full-time employment.

 

As the world begins to fully embrace this new form of working, which will likely rise in the aftermath of the pandemic, talent executives must plan for this inevitable shift and discover new methods to support workers to preserve the gig economy’s long-term viability.

 

The gig economy has undeniably become a vital component of the Indian workforce; a tendency that has only been accelerated by the pandemic. Millions of people are deciding to pursue a work arrangement that better matches their lifestyle than the typical full-time job.

 

However, the expansion of the gig economy raises important considerations concerning the rights of its workers and the long-term viability of this work arrangement if those rights are not fulfilled.

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Turbulent times for MIMO and gig workers

Starting with just a couple of clients and 250 field officers in late 2017, MIMO served more than 70 clients through 10,800 field officers till February 2020. MIMO’s future appeared bright, with its operations reaching 19 Indian states. The coronavirus then hit. The entire country was put under lockdown. MIMO’s field activities were shut down, and clients failed to uphold their pledges to continue doing business during these difficult circumstances.

 

MIMO, desperate for survival, has considered a video verification mechanism. This is not a large, groundbreaking change, but rather a simple tweak to make the greatest use of the available resources: video calling. What began as a temporary solution during the ongoing crisis quickly gained traction with both clients and field officers working from home.

 

Clients’ confidence in MIMO’s deliverable quality, as well as the MIMO team’s capacity to implement the new procedure and educate interested field officers, has begun to yield results. MIMO could be performing more transactions than the pre-COVID era, having grown from nearly zero transactions in the latter half of March to a couple of hundred today and a pipeline of two major clients joining in. To read the full story, please visit https://www.microsave.net/2020/06/17/mimo-bridging-the-digital-gap-for-the-rural-workforce/

The Impact of COVID-19 on the Gig Economy

The Bottom Line:

Now is the time for businesses to rethink the role of gig workers in their organizations and devise a strategy to retain them in the future. While their expanding ranks may bring workforce agility and cost efficiency, as the economy improves in 2021, companies must examine how to retain the best gig workers to help their organization expedite recovery efforts in the months and years ahead. For more info regarding MIMO’s services, please visit Supply Chain Service Provider In India – MIMO (mimo-technologies.com)

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Where opportunity meets people: Jaspal Yadav’s Story

Where opportunity meets people: Jaspal Yadav’s Story

Jaspal belongs to a small village of Rudayan, Sambhal. His father was a farmer and his mother also used to support him apart from taking responsibility for being a Housewife. Jaspal also had one elder brother and one younger sister. Farming was the only source of livelihood and earning for his family and Jaspal used to actively support his father in farming since his childhood.Despite all this struggle Jaspal never quit his studies and completed his graduation however he always knew that he had limited scope in his village.

After Completing graduation Jaspal started working as a direct sales executive, selling broadband however he was not very satisfied with it and wanted to do something on his own. While he was struggling and wondering what to do in his life unfortunately, he had the biggest setback of his life and lost his father. He did not even get the chance to recover from it when his big brother also decided to separate from family and suddenly the complete responsibility of running the family was on the shoulder of Jaspal.

As the saying goes “Only thing constant in life is change”, A very worried Jaspal that day was sitting at home, when he got a call from one of his ex-colleagues who introduced him to MIMO and its work opportunity. This was a turning point in Jaspal’s life which he had been waiting for. He started earning Rs 1500 to 2000 initially and in a few months, he doubled it with extreme hard work and devotion and now he is easily earning Rs 15,000 and above and is all set to increase it. He already has helped two of his friends by recommending them to MIMO and, they are actively working now with MIMO and living a life they always wanted. He also recalls his old job where there was no job security and long working hours daily and now in MIMO, he can earn a good income by just investing 4 to 5 hours every day.

Jaspal feels excited that working with MIMO he can meet different people every day and gets to learn so many new things from them, today he is proud of his achievements and when asked about how he feels about the journey with MIMO, he answered with complete satisfaction

“I am happy to be associated with MIMO as it has given me the kind of life I was looking for”

Jaspal Yadav

Jaspal said he is now able to take care of his family. He can arrange money for his sister’s wedding and take care of his old mother. He ended up passing on his vote of thanks to MIMO; “Thank you MIMO for giving me so much in life in such a short period”. He also talks about the unique work model offered by MIMO and says, “Now I can support my family financially and can also give them more quality time, by working as per my convenience”.

He also says, “I can earn as much as I want as there is no capping from MIMO, more I work more I get paid”, he also praises MIMO work culture where he works independently and does not have to report to anyone and can take complete ownership of the work. He is now sure of his future and has set up a goal to double his current earning this year. This story of Jaspal is an inspiration to every young Indian who is looking for an extra income opportunity and MIMO has taken the ownership to provide the extra income opportunity by employing rural India.

MIMO Technologies proposes a framework for unlocking long-term value in rural markets and transforming into a high-performing business. The system is led by consumer emphasis and location, which involves selecting rural markets—a mix of goods and geographies that can best generate long-term value for the business.

Our network has over 14000 field officers, allowing for improved availability and comfort for the end-user. They have been qualified to deal with consumer complaints and any concerns that could occur during the process. MIMO collaborates with many businesses to provide access to a variety of goods and services in even the most remote areas of the country.

MIMO generates value by actively engaging local capital in the conception, design, and implementation of services driven by disruptive technologies. By bringing financial stability to its operating area, we hope to instill a sense of security and goodwill among the people. Our ‘gig’ employees use a robust mobile wallet to help us achieve our goal of offering financial solutions to everyone.

Our platform is designed to meet the needs of a range of domains and industry verticals, and it can be used to operate more productive on-field operations and generate revenue. India’s rural e-commerce market will expand at an exponential pace over the next four years as internet penetration grows, household income rises, and the government pushes digital transformation in rural areas. MIMO provides a temporary workforce of well-trained field officers who manage last-mile distribution and collection in underserved pin codes across India.

Our field officers serve as an inspiration for every young Indian who are looking for task-based employment and to serve society at its grassroots. It is a journey that promises to be exciting and fulfilling where ‘gig’ workers get to interact with different people each day and in the process earn a livelihood for themselves.