Electronic Prices for Platform Workers in Chile: Navigating a Mixed Picture - Feb 2025

 

Electronic devices have become a must-have for platform workers around the world, whether they provide on-site services (delivery, transport, home services) or are remote online workers.

These devices are necessary for them to do their jobs, but also have an impact on their productivity and earnings, especially in a global context of rising cost of living.

Looking at Chile, WageIndicator's latest cost of living data on electronic price changes reveals a mixed picture: platform workers in the country experience price fluctuations differently.

While some essentials have become more affordable, others have not, resulting in a mixed impact on their daily spending.

This is especially interesting considering the unique context of Chile's digital ecosystem.

Why has the platform economy grown so rapidly in Chile in recent years?

Both location-based and remote online platforms have grown significantly in recent years, due to high internet penetration and migration.

Based on ILO data (2023), 70 per cent of the Chilean population has access to the Internet, and 8 out of 10 people use smartphones.

This digital evolution, especially after the covid pandemic, has provided the perfect ecosystem for the e-commerce sector to grow and for consumers to increasingly engage with digital platforms. A significant proportion of web traffic still comes from mobile devices, and app-based or online services are the perfect answer to consumers' needs.

From the point of view of the workforce, the growth of digital labour platforms is specifically linked to the significant increase in the number of migrants living in the country and relying on platforms to earn a living. As underlined by the ILO, Chile is one of the main host countries for migrants as a percentage of the total population, and many of them start working on digital labour platforms, especially delivery platforms, as a main or supplementary source of income, either permanently or temporarily while they look for another job.

What are the price changes that affect platform workers in Chile the most?

As shown by WageIndicator’s data collection, the part of the Chilean labour force involved in the platform economy that chooses to register with delivery platforms is particularly affected by electronic price changes:

• Mobile phone prices increased by 13.7% in 2024 compared to 2023.
• Power banks have also become more expensive , with a jump of 3.7%.

For those in delivery or transport sectors, reliable smartphones, GPS devices, and often a durable vehicle are essential for managing routes, receiving real-time updates, and ensuring timely deliveries.

On the other hand, remote online workers who rely on laptops, high-speed internet and data plans reported that the prices of these categories of tools had decreased:

• Laptops are 16.9% cheaper in 2024 than in 2023;
• Data plan prices have fallen by 7.85%.
• Wifi is also cheaper, falling by 1.93%.

The need for these devices has made electronic equipment an integral part of their professional lives, with many workers now seeing it as an essential tool for survival in the gig economy.

This disparity in price changes highlights the complex and unequal nature of inflationary pressures in the country, with some workers benefiting from lower prices while others continue to face economic challenges.

There are also other work-related costs that add up: delivery and taxi workers need their own equipment and transport to carry out their work, and most buy a vehicle specifically for their delivery work, as well as paying for backpacks, uniforms and other items, which is a significant initial investment.

In addition, electronic equipment needs to be replaced on a regular basis, and price changes, as shown by the WageIndicator data collection, can affect the ability of gig workers to invest in or replace equipment and earn sufficient income to cover these costs.

 

Did you know? All these costs are included in the Living Tariff, along with overheads, time, social security, and taxes. The Living Tariff is intended to provide a minimum income floor for platform workers and freelancers, based on WageIndicator's Living Wage calculation methodology.