Assessment of potential for a blue collar employment marketplace

Abstract

About 85% (370 Mn) of India’s workforce work in the unorganized. With increase in app-based services in the market over the last decade, blue collar workforce has seen a major overhaul. Top tier cities including Delhi, Bangalore were one of the major employers of gig economy workers till now but now with more and more companies entering tier-2 cities, requirement of blue-collar workers is seeing high growth in these cities. Most of the blue-collar workers migrate from villages in search for better jobs. Five states (Uttar Pradesh, Andhra Pradesh, Assam, Odisha and Bihar) contribute about 60% of the migration. With lockdown during Covid-19, many of the workers migrated back to their native places. Now, with opening of the economy, companies will need to hire back these workers and an app based marketplaces can help them with this. This report attempts to understand the main pain points and decision-making levers for such customers while switching jobs. The report has also tried to analyze employer’s perspective to create an effective community for the overall functioning of marketplace. We have tried to deep dive on the major gaps that exist in the market by employing various primary and secondary research methods to determine the decision variables. The insights from our research has been used to determine overall market sizes of different segments, based on which the decision of “where to play” has been undertaken. A detailed business model canvas has been created for both sides of the business. We have also attempted to create an operating and business model to tap into the chosen model.