Risk based study on food delivery riders in the gig economy using agent-based models

Abstract

In recent years, food delivery services have gained significant popularity, especially with the onset of the COVID-19 pandemic. This rapid growth has likewise been accompanied by an increasing number of workers turning towards freelance delivery jobs due to the flexibility and high income that such jobs provide. However, accident rates have been increasing year on year and owing to their classification as independent contractors, riders are not compensated for injuries they sustain during the course of their deliveries. This has led to concerns that their relatively high pay is merely an illusion and may not reflect the true risk of the job. Thus, this paper seeks to better understand the risk-taking behaviour of the riders, reliability of gig-based income, as well as the overall impact on the food delivery services if this supposed underpricing were corrected. The study will be conducted using an agent-based model as it allows collection of in-depth data as well as the testing of scenarios which are not possible in real life.