International Journal of Social Science & Economic Research
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Title:
An in-depth analysis of labour market monopsonies in the gig economy sector in India. The role of market dominance in wage settlement and working hours in companies like Zomato and Uber

Authors:
Rimika Baheti

Journal: International Journal of Social Science and Economic Research (IJSSER)
ISSN: 2455-8834
Volume: 11
Issue: 10
Publication Date: October 2026
DOI: 10.46609/IJSSER.2026.v11i10.014

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Rimika Baheti
Oberoi International School Jvlr

MLA 8
Baheti, Rimika. "An in-depth analysis of labour market monopsonies in the gig economy sector in India. The role of market dominance in wage settlement and working hours in companies like Zomato and Uber." Int. j. of Social Science and Economic Research, vol. 11, no. 10, Oct. 2026, pp. 5601-5624, doi.org/10.46609/IJSSER.2026.v11i10.014. Accessed Oct. 2026.
APA 6
Baheti, R. (2026, October). An in-depth analysis of labour market monopsonies in the gig economy sector in India. The role of market dominance in wage settlement and working hours in companies like Zomato and Uber. Int. j. of Social Science and Economic Research, 11(10), 5601-5624. Retrieved from https://doi.org/10.46609/IJSSER.2026.v11i10.014
Chicago
Baheti, Rimika. "An in-depth analysis of labour market monopsonies in the gig economy sector in India. The role of market dominance in wage settlement and working hours in companies like Zomato and Uber." Int. j. of Social Science and Economic Research 11, no. 10 (October 2026), 5601-5624. Accessed October, 2026. https://doi.org/10.46609/IJSSER.2026.v11i10.014.

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ABSTRACT:
This paper examines the presence of monopsony in India’s gig economy while evaluating its impact on market outcomes, service conditions for consumers, and working conditions of the workers (driver- and delivery- partners). The study investigates how the concentration of market power among major platforms that buy labour, such as Uber India and Zomato, can influence the wages, employment opportunities and conditions, income and job security, and the overall bargaining position of the workers. The findings suggest that although the companies have achieved substantial profitability and market share, improvements in workers’ conditions, compensation, medical and employment security, and social protection have not accompanied the companies’ growth. The structures of wages, coverage of insurance (medical, accident, life, etc.), support during the pandemic, and other such parameters demonstrate the detrimental conditions that are imposed upon the workers as a result of the companies aiming to improve their profitability and financial position. For instance, Uber cut financial incentives and benefits for its drivers in order to maintain its own financial position. This issue is particularly significant within India’s labour market, where the large availability of workers (driven by the high unemployment rate) may reduce individual workers’ bargaining power and allow platforms to maintain the deleterious conditions. The government has attempted to introduce measures aimed at improving the welfare and protection of gig workers. However, there are loopholes within the regulations created for the protection of gig workers that companies have circumvented in order to avoid obligations. This reduces the effectiveness of the measures. Overall, the research highlights the relationship between platform market power and worker conditions, while considering the need for greater competition within the market to ensure better outcomes for all stakeholders in the market (consumers, firms, and workers). This could ensure that the growth of India’s gig economy is accompanied by worker welfare.

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