Empowering Gig Workers: EV Subsidies as a Catalyst for Sustainable Employment

Government initiatives and corporate incentives to subsidize EVs are transforming the landscape for gig workers. Subsidies reduce the financial burden of purchasing or leasing EVs, making these vehicles accessible to delivery riders and freelancers who operate on tight margins.

December 31, 2024. By News Bureau

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Sustainable transportation

Sustainable Employment

The gig economy has grown exponentially in recent years, with millions of individuals worldwide now earning their livelihood through flexible, on-demand jobs. In India, gig workers, especially in the last-mile delivery sector, play a pivotal role in the burgeoning quick commerce industry, which is projected to grow to $5.5 billion by 2025, according to RedSeer Consulting. However, they often face challenges such as high operating costs, fluctuating fuel prices, and limited income stability. Transitioning to electric vehicles (EVs) could address these issues, but the upfront cost remains a significant barrier. This is where EV subsidies emerge as a game-changer.

The Role of EV Subsidies
Government initiatives and corporate incentives to subsidize EVs are transforming the landscape for gig workers. Subsidies reduce the financial burden of purchasing or leasing EVs, making these vehicles accessible to delivery riders and freelancers who operate on tight margins. The recently launched PM-eBus Sewa (PM Drive) scheme, which focuses on electrifying public transport, also has ripple benefits for the EV ecosystem, encouraging a broader shift towards electric mobility. Similarly, the Indian government’s FAME II (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) scheme provides subsidies of up to ₹15,000 per kWh for two-wheelers, significantly reducing their upfront cost. States like Delhi and Maharashtra offer additional benefits such as road tax waivers and direct incentives, further easing the transition to EVs.

Sustainable Livelihoods for Last-Mile Delivery Riders
In the last-mile delivery sector, particularly in quick commerce, EV adoption can lower operational costs significantly. According to a report by NITI Aayog, electric two-wheelers have a total cost of ownership that is 20-40% lower than petrol-powered counterparts over five years. For gig workers, these savings translate directly into higher take-home income and greater financial security. A case study from Bengaluru revealed that delivery riders using EVs saved up to ₹4,000 per month on fuel costs alone, a substantial boost for workers earning an average of ₹15,000-₹25,000 monthly.

Additionally, EVs contribute to reducing carbon emissions. India’s transport sector accounts for 13.5% of the country’s CO2 emissions, according to the International Energy Agency (IEA). Scaling EV adoption in the gig economy can significantly curb this figure, supporting India’s commitment to achieving net-zero emissions by 2070.

Enabling Growth in Quick Commerce
Quick commerce, which promises ultra-fast delivery of essentials, thrives on efficiency and reliability. EVs, with their low maintenance costs and high efficiency, are ideally suited for this sector. Companies like Swiggy and Zomato have already pledged to transition their delivery fleets to 100% EVs by 2030. With EV subsidies accelerating adoption among delivery partners, quick commerce companies can expand their operations sustainably.

Moreover, as the charging infrastructure improves—driven by public and private investments—the reliance on EVs becomes even more practical and widespread. According to the Ministry of Power, India’s EV charging network grew by 285% in 2023 alone, with major metros leading the adoption. The National Electric Mobility Mission and PM-eBus Sewa initiatives also emphasize expanding charging infrastructure to support a diverse range of EVs.

Building a Better Future
EV subsidies are more than just financial incentives; they represent an investment in the future of work and the environment. For gig workers, they pave the way for sustainable employment by reducing overhead costs, increasing income stability, and providing access to modern, eco-friendly technology. For the last-mile delivery sector and quick commerce, they facilitate growth while minimizing environmental impact.

As India accelerates toward its e-mobility goals, empowering gig workers through EV subsidies should remain a key priority. By supporting these modern-day entrepreneurs, we can not only drive economic growth but also achieve a greener, more sustainable future for all.

- Samarth Kholkar, CEO and Co-Founder, BLive