Number of workers in goods delivery applications grows by almost 1000% in 5 years, Ipea points out | Economy

The number of Brazilians working for merchandise delivery applications grew 979.8% in the last 5 years, according to a study by the Institute for Applied Economic Research (Ipea) based on data from the Brazilian Institute of Geography and Statistics (IBGE).

There are about 1.4 million Brazilians who work in this format and also in passenger transport applications.

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In 2016, 30,000 people worked for apps for delivery. In the second quarter of 2021, that number reached 278,000, according to the study.

In the sector of passenger transport growth among professionals working in this format was 37% in the same period, from 840 thousand in 2016 to 1 million in 2018 and reaching its peak in the third quarter of 2019, with 1.3 million people.

Due to the coronavirus pandemic, there was a reduction throughout 2020, but the number soon stabilized in the first two quarters of 2021 at 1.1 million people employed in passenger transport in the self-employed regime.

These workers work for companies that hire labor to perform sporadic and non-employed services, mainly through applications. Up to 31% of the 4.4 million people who work in the transport, storage and mail sector in the country work in this format of work.

High Fuels Affect Driver Profit by Applications

High Fuels Affect Driver Profit by Applications

According to IPEA, the Covid-19 pandemic has increased the vulnerability of people already working through applications and also of those who started to work in this format during the crisis.

“There is an increase in social vulnerability, characterized by the absence of unemployment insurance, sick pay and social security contributions by the employer. In the long term, the effects can be ambiguous due to the strategic behavior of companies inside and outside the sector. It is possible to observe two mechanisms at work: the demand for these workers may decrease as the general economic situation worsens as a result of the pandemic and companies may resort to cheaper and more flexible forms of work”, explains Ipea in a statement.