{"id":7514,"date":"2019-08-04T12:18:26","date_gmt":"2019-08-04T12:18:26","guid":{"rendered":"http:\/\/calamur.org\/gargi\/?p=7514"},"modified":"2019-08-04T12:18:37","modified_gmt":"2019-08-04T12:18:37","slug":"cnbc-tv18-column-drones-flying-away-with-jobs","status":"publish","type":"post","link":"https:\/\/calamur.org\/gargi\/2019\/08\/04\/cnbc-tv18-column-drones-flying-away-with-jobs\/","title":{"rendered":"CNBC TV18 Column: Drones Flying away with Jobs"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">Across cities in India, speciality\nrestaurants are coming up. Many are specific regional cuisine. Others from\nacross the world. And, most survive mainly on home deliveries. The food\nrevolution has come to India via a most unexpected source \u2013 the mobile. The\nsmartphone has put choice in the hands of the customers in terms of food.\nIndians are ordering more food delivered home than ever before. And, it is not\njust a metro phenomenon. Consumers <a href=\"https:\/\/economictimes.indiatimes.com\/small-biz\/startups\/newsbuzz\/zomato-expands-food-delivery-business-to-213-cities-across-india\/articleshow\/68672719.cms\"><strong>in\nover 200 cities and towns across India<\/strong><\/a>, place <a href=\"https:\/\/economictimes.indiatimes.com\/news\/environment\/pollution\/cut-the-cutlery-plastic-with-your-home-delivered-meal-adds-up-to-22000-tonnes-waste-every-month\/articleshow\/65776484.cms?from=mdr\"><strong>35-40\nmillion orders<\/strong><\/a> on food apps each month. And, a key part of this\nordering is the speed at which the food will be delivered. That looks to change\nradically in the near future. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Among the more visible displays of the digital economy at play, in India, is roads jammed with two-wheelers that deliver on the promise made by food delivery apps. Zomato and Swiggy drivers dot our roads, darting about on their motorcycles, rapidly delivering food to us. On-demand. It is estimated that the two major players account for over <a href=\"https:\/\/scroll.in\/article\/903509\/the-popularity-of-indias-food-delivery-apps-is-making-indias-restaurants-think-differently\"><strong>80% of the market for food delivery<\/strong><\/a>. And, delivery is a key part of what they do. Gone are the days when Zomato acted merely as the aggregator, allowing the customer to order food directly from whichever restaurant provided delivery. Today both majors provide a kitchen to the door service. Someone has to pay the cost of delivery, and it is not the customer. With restaurants wary of lowering margins, the bulk of the cost of wages of the delivery boys are picked up by the food delivery app. With a price sensitive customer, a margin protective restaurant segment \u2013 all food delivery apps are reeling under the cost of delivery. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">And, there is one other cost. A hidden cost. A huge externality that has been caused by the success of the food delivery apps as a consumer convenience provider. And, that cost is the environmental damage caused by food delivery apps. First, there is the congestion on the roads. The second is the increased use of fuel in making those deliveries. The third is the <a href=\"https:\/\/www.zomato.com\/blog\/environmental-concerns\"><strong>inordinate mounds of cutlery and plastic<\/strong><\/a> that is used \u2013 estimated at 22,000 metric tons each month. Each of these is a cross mark in a world that is increasingly aware that it is running against rising temperatures. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Essentially what the food delivery apps will try and do Is mitigate these two costs. One to cut their losses, and hopefully inch towards a profit. And, the second is to cut their carbon footprint and earn brownie points to the bargain. And, both objectives are met by the idea of using drones to deliver food. Recent reports suggest that <a href=\"https:\/\/www.cnbctv18.com\/startup\/zomato-tests-drone-technology-for-food-delivery-but-is-it-legal-3689991.htm\"><strong>Zomato is testing drones<\/strong><\/a> to deliver food, and there are two issues on the use of drones to perform jobs that are being done by people now. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The first part of the issue is the\nlegality of using drones to do anything. There is a no-fly policy in place\nright now, while the Director General of Civil Aviation (DGCA) waits for the\ngovernment to put a policy in place. After all, if one company uses drones to\ndeliver food, it is likely others will use it to deliver other things. And,\nsooner or later, drones will run into each other. While the idea of your Paneer\nMakhani crashing into someone Pizza Napolitana might seem the stuff comedies\nare made of, it really won\u2019t be that funny if it happens in real life. At the\nmost basic level, traffic rules for drones will need to be established, pretty\nmuch the way airlines follow routes. And it is likely, that sooner rather than\nlater there will be a policy on using drones, traffic control, and even\npenalties for drone misuse. It is just a matter of time. Unless the Government\nsees security concerns in using drones, it is unlikely that they will be\nbanned. It maybe heavily regulated, but a ban would go against the image of a\nGovernment out to improve the \u2018ease of doing business\u2019. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The second part of the problem is\neven more serious \u2013 and that is the impact this will have on jobs. It isn\u2019t\nlike India is flush in jobs or managing to create new ones that will employ\nlarge swathes of unemployed youth. It is estimated that the average delivery\nboy earns between <a href=\"https:\/\/www.livemint.com\/Companies\/cYbdfsYk93HFhMuC0XgaNN\/Swiggy-Zomato-hike-delivery-boy-salaries-as-competition-gro.html\"><strong>25,000\nand 50,000<\/strong><\/a> per month by just ferrying our food from the restaurant to\nour house. What would happen to these jobs and incomes? The standard free\nmarketeer response to this would be \u2018there will be new jobs.\u2019 However, right\nnow no one has seen those jobs or has any information on what shape or form\nthose jobs will take.&nbsp;&nbsp;&nbsp; <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">And, therein lies the dilemma. Do\nyou ban all drones that will reduce congestion, improve the environment, and move\ncompanies towards profitability? Or do you protect jobs? Both are important\npolicy considerations. Can you really stem the rush of the future? And, if the\nfuture says drones, do you push it away? Can India really be left behind in the\ndevelopment and use of drones? And, herein comes Government policy on how, if\nat all, drones will be allowed in commercial space, and how will they put in\nplace policies to mitigate the loss of jobs. One of the things that the\nGovernment could look at is the <a href=\"https:\/\/www.ft.com\/content\/d04a89c2-f6c8-11e6-9516-2d969e0d3b65\"><strong>Robot\nTax,<\/strong><\/a> suggested by Bill Gates. As per Gates, the loss in jobs is\naccompanied by a loss in the tax revenues earned by the Government, and the tax\nshould be aimed at redressing this. He suggests that the monies collected from\nthe \u201cRobot Tax\u201d go towards retraining people for the jobs of the new economy. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">There are many solutions that need\nto be found, as the digital economy moves on from disrupting traditional\nbusiness models to disrupting itself. But for that policy makers need to have a\nconversation with the industry, workers groups, and academia. There can be no\nknee jerk response to this issue. It is about the future, and has to be handled\ncarefully. <\/p>\n","protected":false},"excerpt":{"rendered":"<p>Across cities in India, speciality restaurants are coming up. Many are specific regional cuisine. Others from across the world. And, most survive mainly on home deliveries. The food revolution has come to India via a most unexpected source \u2013 the mobile. The&#8230;<\/p>\n","protected":false},"author":1,"featured_media":7515,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[10,15,20,23],"tags":[1755,527,615],"class_list":["post-7514","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-articles-in-msm","category-economics","category-future-of-work","category-india","tag-drones","tag-employment","tag-future-of-work"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>CNBC TV18 Column: Drones Flying away with Jobs - A PoV<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/calamur.org\/gargi\/2019\/08\/04\/cnbc-tv18-column-drones-flying-away-with-jobs\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"CNBC TV18 Column: Drones Flying away with Jobs - A PoV\" \/>\n<meta property=\"og:description\" content=\"Across cities in India, speciality restaurants are coming up. Many are specific regional cuisine. Others from across the world. And, most survive mainly on home deliveries. The food revolution has come to India via a most unexpected source \u2013 the mobile. 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Many are specific regional cuisine. Others from across the world. And, most survive mainly on home deliveries. The food revolution has come to India via a most unexpected source \u2013 the mobile. 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