20 pc of gig workers fail address verification, raises concern of customer safety: Report

NEW DELHI: Around 20 per cent of gig workers failed address verification checks, raising concerns for customer safety in sectors such as e-commerce, food delivery, and transport, according to a survey report by AuthBridge.

The report revealed that 20 per cent of gig workers failed address verification checks. This has created difficulties in tracking and verifying workers, making it a critical challenge for companies that depend heavily on gig workers like delivery agents and cab drivers.

It stated, “20 per cent of Cases Failed Address Verification Checks Temporary accommodations, frequent relocations, and shared housing were the main causes”. The findings further highlighted that gig workers showed an overall discrepancy rate of 4 per cent. These discrepancies included issues such as court record offences and fake identities.

The report noted that such gaps in background checks pose a serious risk to customers, given the large-scale interaction between gig workers and the public. Among the discrepancies, 3.5 per cent of gig workers were found to have a legal history, with offences ranging from assault and theft to traffic-related violations.

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The most alarming issue, however, is impersonation. The report pointed out that in many cases, the individual who checks in at a warehouse or a dark store is not the same person who completes the delivery. This collusion between two individuals not only violates platform policies but has also resulted in incidents of pilferage, missing cargo, fraud, and ultimately poor customer experiences.

The risks are not limited to gig workers alone. The report found that white-collar employees recorded a 6 per cent discrepancy rate, particularly in sectors like IT, banking, and telecom. Inflated salaries, fake experience, and contract violations emerged as the leading causes.

The study also stated that 1.3 out of 10 employees fail employment checks, while 17 per cent of resumes did not match what candidates claimed. Additionally, 10 per cent of address verification checks failed because locations were untraceable or referees refused to confirm details.

The report highlighted the financial risk of poor hiring practices as well, noting that a bad hire can cost up to one-third, or 30 per cent, of an employee’s first-year salary. With the gig economy continuing to expand, especially in urban centers, the report mentioned the challenges of verification and impersonation are growing.

Companies operating in delivery, transport, and related sectors now face increasing pressure to strengthen their screening and verification processes to ensure both customer safety and service reliability. (ANI)