In a 2023 Household Survey on the Impact of the Economic Crisis by the Department of Census and Statistics, one of the most commonly recorded means of coping utilized by Sri Lankan households was turning to a secondary job, as an additional source of income. 

With the global proliferation of gig work (task-based work enabled through digital platforms on a temporary basis) during the pandemic in 2020, Sri Lankans along with the rest of the world have since joined globally and locally developed gig-work platforms, owing to the technological disruptions that drove economies towards adopting digitization. 

While the number of persons offering services strictly limited to online platforms in the local gig economy remains unknown—ostensibly enough, a majority seems to be dominated by ride-hailing or delivery gig workers on platforms such as Pickme and Uber. Pickme, while developed locally, has grown exponentially in popularity in the past 9 years, competing alongside Uber, an international platform developed in San Francisco in the United States, back in 2009.

The services provided on these platforms in Sri Lanka have since extended beyond ride-hailing into parcel delivery, and food and grocery delivery services. In the emergent phase of the gig economy and therein gig-work, we sat down with Anisha Gooneratne, Research Associate at the Centre for a Smart Future, to discuss her findings on her newly published research brief: Algorithms at Work: The Management of Gig Work in Sri Lanka, and previous work on digital education.  

In this interview, she raises an alarming incongruity on how Sri Lankans, whilst increasingly moving towards gig platforms for work, are also progressively vulnerable to shocks mediated by these platforms. Given the greater focus on digitization and the digital economy, she highlights the need for greater emphasis on greater transparency and protection for workers on gig platforms.

While algorithmic transparency, defined as the explainability of automated decisions and users’ level of knowledge of them, has still not been realized in Sri Lanka, the European Union recently passed the Platform Work Directive, meant to introduce transparency of algorithmic management.

As Sri Lankan gig workers engage daily with work allocated to them through algorithms, Anisha pares down the practical necessities for digital and algorithmic literacy, transparency in data collection on platforms, and the burden of insufficient information on how to operate on platforms, especially concerning leveraging algorithms positively.

Assessing the Shift Towards Gig Work 

In the post-pandemic landscape of Sri Lanka, the surge in gig work is impossible to overlook. 

This shift towards gig economy roles, driven largely by technological advancements and automation, has changed the employment landscape dramatically. A few years ago, services like Uber and PickMe were relatively unknown. Now, they’re integral parts of urban mobility and employment.

Consider this: my first Uber ride in Sri Lanka was back in 2017, seven years ago. Since then, the expansion of gig platforms has been extraordinary. Companies like PickMe have become household names, and the number of people earning through these platforms has skyrocketed. While exact figures are hard to come by, it’s evident that the scale is substantial.

Research conducted by the Centre for a Smart Future showed that the COVID-19 pandemic had a mixed impact on platform-based- gig work in Sri Lanka, especially in the ride-hailing space. Lockdowns limited the rides that gig workers could undertake, whereas delivery options proved more promising as households ordered food from delivery platforms. With the onset of the economic crisis, the fuel crisis impacted the availability and price of fuel, with gig workers choosing to find other means of making an income, as operating on the platforms was no longer profitable.

Given the current economic conditions, we’ve since seen an uptake in gig work over the past two years. With many Sri Lankans seeking supplementary income due to insufficient primary earnings, the appeal of gig work is undeniable. 

Many gig workers I’ve engaged with through our research mentioned starting gig work within the last two to three years, primarily to offset daily expenses like fuel costs for commuting, or to cover increased expenses such as utility bills or tuition payments. As competing and increasing expenses burden households, the gig economy is well-positioned for further growth to help mitigate some of the long-lasting impacts of the economic crisis. 

Gig Workers and the Algorithm 

Navigating the gig economy as a driver for platforms like Uber and PickMe is akin to playing a game where the rules are not just unclear but are often entirely hidden. Gig workers operating on digital platforms find themselves at the mercy of algorithms that dictate every aspect of their workday, from how rides are allocated to how their performance is assessed. Yet, despite the significant impact these algorithms have, many drivers remain in the dark about how they operate.

Take, for example, the training sessions provided by these platforms. While they do offer some guidance on how to use the app, they fall short when it comes to explaining the more complex workings of the algorithms. This lack of understanding is compounded by terms and conditions written in English or made complex in local languages that many drivers struggle to comprehend. It’s like agreeing to a software update without reading the fine print; most of us click ‘agree’ and hope for the best. 

This situation is further complicated by the data collection practices of these platforms. Drivers may not realize that by using the app, they consent to share extensive information about their whereabouts, driving patterns, and ride history. This data is then used by the platform to make decisions that directly affect their earnings, such as ride allocations and pricing adjustments. It’s a classic case of information asymmetry where the platform holds all the cards, and the drivers are left guessing.

In practical terms, this means drivers are often unaware of why they aren’t getting rides while their peers are. They might see another driver in the same area get multiple rides while they wait for hours. This lack of transparency forces them to rely on peer networks and social media groups to share tips and strategies.

Facebook groups, for example, have become essential for drivers trying to understand how to maximize their earnings. But these discussions are frequently filled with speculation and misinformation which only adds to the confusion.

The gig workers’ efforts to make sense of the system often result in trial-and-error strategies. They might change their location based on a tip from a fellow driver or tweak their work hours in hopes of catching a surge in demand. Despite these efforts, the underlying issue remains the opaque nature of the algorithmic management that governs their work lives. This lack of transparency affects their earnings and working conditions, as many drivers end up working excessively long hours to meet the incentive targets set by the platforms.

Moreover, the financial burdens on these drivers are significant. They must cover costs for fuel, daily app commissions, vehicle maintenance, and broadband data. In many cases, the income barely offsets these costs, leaving them in a precarious financial situation. Also, the incentive structures meant to boost earnings often push drivers to work under stressful conditions, sometimes at the expense of their health.

Managing Algorithms

To address these issues, platform companies need to take on more responsibility for ensuring that their drivers are well-informed about how the system works. This could start with simplifying the terms and conditions and making them available in the three official languages: Sinhala, Tamil and English. 

Additionally, the platforms could provide more detailed and transparent information about how the algorithm impacts ride allocations and performance assessments.

While protecting the intellectual property of the algorithm is important, greater transparency is essential. 

There have been calls in the Global North for more openness about how these algorithms function, recognizing that keeping gig workers in the dark is neither fair nor sustainable. For example, the ​​EU’s Platform Work Directive aims to consider the rights and conditions of workers on digital platforms. As part of this, there is a greater focus on algorithmic management and protecting workers against the continuous monitoring and decisions made by the algorithms of these platforms. It also calls for greater transparency on automated monitoring and decision-making systems with a push towards human-driven decision-making. By providing clearer guidance and more accessible information, platforms can help drivers make more informed decisions leading to improved working conditions.

The current state of algorithmic management in the gig economy leaves much to be desired. Drivers navigate a complex and often opaque system that significantly impacts their livelihood. By fostering greater transparency and providing better support, platform companies can help bridge the information gap, ensuring drivers can work more effectively and with greater peace of mind.

Regulation and Responsibility

Now, let’s consider the regulatory aspect. The Personal Data Protection Act No. 9 of 2022, sets out guidelines for the processing of personal data. With the gamut of data that is being collected by these platforms, greater transparency about how data is being processed following this Act will become a necessity. As part of this, gig workers and customers using these platforms must have a greater understanding of their rights and what provisions are accorded to them under this Act whether it’s accessing the data the platform holds on them, withdrawing prior consent, and data erasure, to name a few. It is also important that regulators hold these platform companies to account, to ensure that data is being processed under the PDPA.

Data protection laws like the General Data Protection Regulation (GDPR) in the EU and the Data Protection Act in the UK set stringent guidelines on how data should be handled. These laws aim to protect consumers, ensuring their data is processed securely and transparently. If a company processes data of individuals in these regions, they must adhere to these strict regulations, regardless of where they are based.

Effective enforcement of these laws in Sri Lanka will become a necessity. Ensuring that a company complies with local regulations can be challenging where they could mandate stricter compliance checks and more robust penalties for violations to provide a higher level of protection for those who engage on these platforms.

The rapid rise in gig workers calls for urgent and balanced intervention. Waiting too long isn’t a luxury we can afford. Regulatory changes are necessary, yet they often face delays due to pushback from companies and bureaucratic inertia. A push for greater algorithmic transparency, and transparent management of personal data collection and processing, will need to be reflected in any new regulation. 

Also given that gig work falls outside traditional employer-employee relationships, many gig-workers are left exposed and vulnerable to higher degrees of risk. For example, lack of minimum wage, social security and paid leave, all play a role in the precarity of gig-work. Moving forward, greater thought to better social protection mechanisms for gig workers will also become essential, given that research by the Centre for a Smart Future has shown that many gig workers on delivery and ride-hailing applications work on these platforms full-time.  

The responsibility lies both with the companies and the authorities. If companies fail to act responsibly towards their workforce, regulatory bodies must step in decisively. The gig economy’s growth will continue, necessitating serious consideration and robust action to ensure fair and sustainable employment practices. It’s an ongoing struggle, but one that’s essential for the well-being of many Sri Lankans who rely on these platforms for their livelihoods.