Gig Economy and hyper- lapse consumerism

The booming gig economy, gig market and gig workers are giving ushers in hyper-lapse consumerism. Online platforms like Dunzo, Zepto, Swiggy instamart, Amazon Fresh, Big basket and others are setting a new definition of consumerism. Three to four years back consumers use to go to the market and bring their groceries as per the requirement. However, the contemporary market can be defined as online shopping and instant delivery.

This idea of market mechanism is very much lucrative for online sellers and buyers. But it has its other side also. The basic principle of business is the gain of one is the loss of another. Furthermore, excessive gain over a short period always leads to shocks in long run. Here, the question is who is the gainer and who is the loser as well as what is the cost of the present gain.

Can we say that the online sellers are benefitting at the cost of the retailer’s loss? Or hyper-lapse consumerism is booming at the cost of exploitation of gig workers as well as the environment. The gig workers are part of the informal sector because they do not inherit any job security. Because of the huge number of orders and the pressure of instant delivery, the delivery persons are always in hurry. It not only increases the chances of accidents but also affects their mental and physical health for which their employers are not answerable. Both humans and the environment are suffering. If we compare the packaging of retailers to that of online suppliers, the latter is using comparatively more plastics and paper for packaging.

In addition to this, there is an increase in vehicle use due to an infinite number of orders per day. It is not only harmful to the environment but also affects human health, and increases the chances of plastic consumption by animals. Moreover, there is a decline in the sale value of retailers because of cost, convenience, and catalogue provided by e-commerce.  However, the question is how these online sellers are managing such low prices, free deliveries, offers, and discounts. For a consumer it is a win-win situation, which is further leading to hyper-lapse consumerism, but are the online sellers going to continue with these offers in long run or it is just a short–run marketing plan? What if the retailers adopt a similar strategy?

gig economy
Author:
Juhi Singh
Author is a PhD Research Scholar at ICFAI Business School, Hyderabad.

3 thoughts on “Gig Economy and hyper- lapse consumerism

  • September 6, 2022 at 10:51 AM
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    I am glad to get such platform of learning econimics in very easy way.
    Thanks to the author and the creative team for enlightening our path to economics with such articles.

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  • September 6, 2022 at 9:56 PM
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    As I saw your article, I think you are right but,i want to add some of my views on that.
    These online sites getting benefit as per your views, but as per my views, Initially these online merchants invested more and more to attract their customers hence they are not getting more profit from customers initially but after long time they will earned more profit through their customers. Due to their lucrative offers and excessive low prices on the products available at online sites, customers more prone to buy from online sites rather than retailers because they provides excessive low prices that never given by local retailers. So, when these retailers forces to close their shops as they getting losses day by day due to low customers outcome at their shops and all these due to lucrative offers given by online sites. Once all/many local retailers gone from market then these online sites have monopoly in grocery markets and then they just put excessive price on their products and customers have no choice to buy them. As we seen this in case of travelling sites like ola, uber cases.
    And secondly, I saw that these online sites creating many jobs in the society. In today’s scenario where there are no jobs or very low jobs. These sites provided many jobs in the form of delivery boys, store maintenance staffs, procurement staffs, HR and many more. But the same time they give very low salaries to their employees and also pressurized to work hard as I saw in case of delivery boys.

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  • September 7, 2022 at 12:16 AM
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    Thank you @Preeti Suman for ur appreciation. We are trying to make this website more informative and useful.

    Reply

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