Uber, Eternal, Porter Exit Karnataka Gig Workers Board

Several platform economy companies, including Uber, Eternal, and Porter, have withdrawn from the Karnataka Platform-Based Gig Workers Welfare Board. The companies stated they do not wish to participate in a statutory body whose foundational law has been challenged in the Karnataka High Court.

The withdrawals stem from a dispute over a new welfare levy intended to fund social security measures for gig workers. The companies have deposited approximately INR 4 crore with the High Court, pending the outcome of the legal proceedings. Amazon India remains on the board as it is not involved in the litigation. The state government is seeking other platforms to fill the vacant seats.

Platform representatives have raised concerns about the levy's prematurity, citing the lack of notification for the social security schemes it is meant to finance. They have also expressed apprehension about the levy's impact on their cash flows. The Internet and Mobile Association of India (IAMAI) has previously stated that its member companies independently fund welfare initiatives for over six million active platform workers.

The Karnataka law mandates a fee ranging from 1% to 5% of the payout a platform makes to a gig worker per transaction. The state has set the fee at 1%, with caps for different delivery categories. Some companies, like Eternal, have increased their charges to consumers significantly, nearly five times the new gig worker welfare fee.

The High Court has noted that depositing the levies with the court balances the interests of the parties, ensuring gig workers may eventually benefit from the proposed social security measures. State authorities have urged platforms to pay the fees to either the board or the court, emphasizing that statutory obligations for worker data provision and the establishment of internal dispute resolution committees remain in effect.