Examining the challenges of the Russian sharing economy: the institutional and evolutionary approach

Abstract

This study examines the key features of Russian sharing economy business specialized in food delivery using the institutional and evolutionary approach. Existing business models used by Russian food delivery companies are characterized by a high level of information asymmetry in the employee-employer relationship. This has led to a great deal of tension and resulted in the open conflict between food delivery companies and couriers. This study is a qualitative research initiative based on a series of semi-structured in-depth interviews with the employees of delivery companies. The results obtained enabled us to distinguish between two groups of couriers. While most “part-time” couriers, who work no longer than 4 hours per shift, are satisfied with their labor conditions, there is a widespread opinion among “full-time” delivery workers that they are underpaid and overloaded. Popular institutionalized form of employment that Russian food delivery companies offer for couriers is self-employment. This form of employment has low social guarantees however minimize employers’ expenses on personnel and social contributions. Even though digital platforms position themselves as reliable partners providing employees with the opportunities for flexible working hours and decent pay, in reality couriers become a very vulnerable and precariatized social group without proper social guarantees and future prospects.