Livelihood Creation is a Major Positive Outcome of eCommerce

The number of unemployed people in Pakistan is expected to rise to 6.65 million by the end of the current financial year in June.

This is an increase of almost a million people over the previous year and effectively means that about 10 percent of the labor force is unemployed – one of the highest percentages amongst comparable countries.

Out of the 62 million people who do have jobs or are employed, a substantial percentage falls into the lower to middle-income group, and for a large majority of them making ends meet on the basis of their wage or salary is next to impossible.

As such these people have to compromise on the quality of life, often sacrificing their children’s education, healthcare, or other necessities of life.

The overall situation is expected to worsen in the coming years, as at the current rate of population growth, Pakistan’s population is estimated to be about 230 million by the year 2030.

Consequently, the youth bulge will further grow as the number of people below age 30 (63% of the population presently) also increases.

In all this gloom there has emerged one very positive development – the rapid growth in the tech landscape and the gig economy – particularly e-commerce, or the buying and selling of goods and services over the internet, which has created widespread economic opportunities.

E-commerce is conducted over computers, tablets, smartphones, and other devices, and today, almost any good or service can be purchased on the web or through an app.

When goods are purchased online, they still have to be delivered to the purchaser and this is where the delivery rider comes in. The e-commerce phenomenon has effectively created a huge new income-earning opportunity for tens of thousands, if not hundreds of thousands of people who sign on as delivery riders.

Delivery riders by and large are not full-time employees of the companies or e-commerce platforms like foodpanda with whom they sign up. Riders, effectively being freelancers, are at liberty to work whenever they so wish to, and for as many hours in a day as suits them.

As such, there is no compulsion to work long hours, or even at a specific time during the day. Thus many riders will have full-time jobs and turn to become delivery riders in their spare time, to generate extra income for themselves and their families.

For others who are unemployed, becoming a delivery rider means creating an income-earning stream where none exists. Many such riders still continue their search for a full-time job and until such time this materializes, income earned as a delivery rider effectively becomes a life-saver for them.

Then there are also riders who actually prefer to work in this freelance capacity and not find a full-time job somewhere, because of the autonomy and flexibility they enjoy as freelancers.

To engage their riders effectively, e-commerce platforms of course invest in several ways. Take the example of foodpanda, which arguably has the largest fleet of delivery riders in the country.

Once a rider is on-boarded after due diligence, he or she is given comprehensive training in several areas, including use of technology, interaction with customers, personal hygiene and care, road laws and safety and so on.

Training sessions conducted by the traffic police department in different cities are also organized. Riders are covered by health and life insurance and also have access to benefits from other corporate partnerships such as discounted fuel, etc.

These benefits, in conjunction with rider payouts, other rewards, bonuses, and support schemes, mean these riders end up in a much better position compared to the counterfactual.

So the growth of e-commerce has effectively become one way in which unemployment is being reduced and for the youth especially.

Being a delivery rider may not exactly be a long-term career choice for many, but this opportunity that e-commerce has created is certainly making a positive difference in the lives of tens of thousands.