Pakistan: Platform Economy Regulations

Regulations

As specified on Uber website, the drivers are considered “independent contractors”.9

Therefore, the general labour legislation is not applicable to them. The Uber drivers are regulated by the contract/partnership agreement which is concluded between the parties. The provisions of such contracts must be in line with the guidelines for contracts as specified in the Contracts Act, 1872 and the Code of Civil Procedure, 1908. Similar is the case of Careem (another ride hailing service in Pakistan).

On the other hand, Foodpanda (a food delivery service) treats food delivery persons as employees (part time or full time employees). Thus, the Foodpanda workers fall under the local labour legislation.10

Gig economy issues in Pakistan

Gig economy issues in Pakistan: long working hours (12-14 hours per day) to be eligible for bonuses and make decent living especially in view of the initial investment on the vehicle; long wait for work; limited work since supply outpaces demand thus leading to long working hours; low fare rates. There are security issues as well; two ride hailing service drivers were killed in 2017-18 during a late night drop-off. There have also been complaints of sexual harassment by the women passengers against the drivers. The drivers with these ride hailing firms have been complaining of low profits and a lack of grievance registration mechanisms.

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