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Highlights:

Draft reforms seek recognition, fair wages, insurance, and accountability

Gig economy sustains jobless Bangladeshi youth amid scarce employment

Over one million Bangladeshis work in ride-sharing, delivery, freelancing

Workers lack protections: no insurance, benefits, or income security

Internet shutdowns and unrest expose gig workers’ extreme vulnerability

Financing, remittance restrictions trap drivers, freelancers in precarious conditions

On a humid afternoon in Dhaka’s Mogbazar, university student Arif Hosain weaves through traffic on his motorbike, delivering food orders. Working three to four hours a day, his earnings cover rent and tuition. Like hundreds of thousands of young Bangladeshis, Arif relies on the gig economy as a survival strategy in the absence of secure jobs.

Bangladesh now counts over a million gig workers—from ride-sharing and food delivery to freelancing and e-commerce. The sector has grown rapidly in the past 15 years, with demand surging during the Covid-19 pandemic. Industry insiders estimate 200,000 drivers in ride-sharing, 400,000 in deliveries, and another 500,000 in freelancing. According to e-CAB, more than half a million entrepreneurs are engaged in online trade.

Globally, gig work—short-term, app-based, and flexible—already makes up around 12% of the labour market, with freelancing projected to grow 15% annually. The US has nearly 59 million independent workers, China over 200 million, and India around 10 million. Bangladesh, too, has embraced the trend—but without the protections of formal employment.

A safety valve with hidden costs

For youths, entry barriers are low: a motorbike, a bicycle, or even just a smartphone can be enough. Students deliver food between classes; graduates drive ride-share cars while waiting for stable jobs. Employers benefit from reduced recruitment costs and leaner payrolls. Customers enjoy faster services.

But the apparent win-win hides a precarious reality. Gig workers remain part of the informal economy—unprotected, uninsured, and uncompensated during accidents, illness, or income disruptions.

The fragility was exposed during Bangladesh’s 10-day internet shutdown in July 2024 amid political unrest. Ride-sharing earnings fell to a fifth, while delivery incomes vanished overnight. Globally too, risks are stark: in August, a ride-share biker in Indonesia was killed during protests.

Ironically, Bangladesh’s own protests in 2024—triggered partly by unemployment—ended up toppling Sheikh Hasina’s government.

A trap of capital and policy

Access to finance remains elusive. AKM Fahim Mashroor, founder of bdjobs and AjkerDeal, notes that 90% of ride-sharing drivers use rented cars, giving up nearly half their income to owners. He argues for loan schemes enabling drivers to own vehicles, with banks and Bangladesh Bank designing policy-driven products.

For freelancers, the challenge is foreign earnings. Pathao co-founder Hussain M. Elius criticises restrictions on bringing in dollars: “Freelancers don’t want layers of paperwork or fees. They want a simple, transparent way.” He also said the 2024 internet blackout destroyed a decade of credibility for Bangladesh’s e-commerce industry, warning the country risks falling behind regional peers like Vietnam and the Philippines.

Glimpses of recognition

There are signs of progress. The Oxford Internet Institute’s Fairwork ranking shows Bangladeshi platforms slowly improving worker protections—from zero in 2021 to mid-level scores by 2023.

Bangladesh’s draft labour law now acknowledges gig workers, with proposals to:

• Recognise ride-share drivers as formal workers
• Ensure fair wages and lower commission fees
• Enforce passenger safety and accident insurance
• Hold multinational gig firms accountable

Other Asian economies are moving faster. China plans social security for gig workers. India is encouraging registration for healthcare and insurance. Analysts suggest Asia must reform pensions and benefits before its youthful workforce ages.

Policy crossroads

Bangladesh’s gig economy is both a relief valve and a policy puzzle. It absorbs jobless youths, lowers costs for firms, and offers convenience to millions—but leaves workers vulnerable to shocks.

The challenge now is to design safeguards without undermining the very flexibility that makes gig work attractive. With over a million livelihoods at stake—and youth unemployment rising—the choices made will determine whether gig work becomes a bridge to prosperity or a trap of insecurity.