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The growing Gig Economy & Its impact on the Automotive Industry

Great catastrophes and tough times bring both misery and opportunities to individuals and the economy. Industries across the world have been looking at ways to spur the demand for their products and services. The last decade fuelled the majority of the SAARC nations’ economic growth as countries across the world found out that the white-collared workers available in India, Indonesia, Bangladesh, and others were not only affordable compared to the workers in their respective countries but were also more productive and helped create better ROI for the organizations that had hired them.

Though India has made its mark in the last decade by being the best outsourcing option for countries across the world, the effect is ebbing off as we’re facing competition from countries like Bangladesh, Indonesia, and China and also the phenomenal development that has happened in the field of AI leading to reduced need to hire for mundane requirements. 

But, not all is gloomy at this moment, there is one industry rather one part of the economy, which seems to be flourishing which has helped companies and individuals across the world to reach out to their customers without having to be present in front of them. The blue-collar workers involved in the gig economy in the last half-decade with the help of great tech unicorns like Amazon, DoorDash, Uber, Zomato, Swiggy, Ola, Flipkart and many others have made the professional services industry across the country realize that delivery/movement of goods and services is not just about convenience and it can be the biggest value differentiator and will soon be one of the best channels for explosive revenue creation for companies.

With greater advancements seen in the fields of AI and IoT, people who have earned their living by partaking in humble jobs are now at cross-roads, but this can be a reckoning for the industries and governments to create jobs to generate more employment and provide an opportunity to earn a dignified living. It’s a fight for skills and talent that will drive the business and talent models, gig workers will certainly assume a strong place in the future workforce.

Fortunately, the answer is yes. The development in tech and connectivity has enabled companies to build products and services which helps professional service providers to not only track the movement of goods, but also help to monitor the experience the customer feels when he receives your company’s product/service.

The automobile after-sales industry has had a major shift in the last decade as the customers are pressed for time, acquiring business from customers by picking-up and dropping off of vehicles for customers.  Also, the longer call-time that the Customer Service Executive (CSE) with the customer gives more up-sell and cross-sell opportunities for the CSE.

21North conducted a case study and discovered that through their services, businesses have been able to drive upto 50% growth by bringing in more vehicles and managing their resources better. Through this, 21North has not only successfully revolutionized the automotive after space market but has become a pioneer through their exemplary vehicle movement management services and have scaled up their presence from one city in 2015 to 22 cities across India in 2021 and have also successfully expanded to South-East Asian and European Markets.

For car sellers, resellers and service centres, it becomes crucial to pick-up and deliver as many vehicles as possible without getting entangled with the responsibility of handling a humongous driver workforce.

It is therefore imperative for auto retailers, dealerships and service centres to acquire more business through pickup and drop-off of vehicles. Despite engaging drivers for a fixed payroll, auto retailers need to acknowledge that more drivers will be required to drive in more business, deliver successfully and earn their customer’s trust. Auto retailers now have the opportunity to avail digitally powered on-demand doorstep vehicle pickup and drop-off by partnering with 21North Europ Assistance. Professional and trained 21North ambassadors execute on-time pickup and drop-off while adhering to all safety measures. The bygone era focused on a trickle-down economy, but the new age that is to dawn will mean the value gets built up from the bottom of the value chain. The players of the auto industry need to step up and harness the potential brought on by digitization and the evolution of the gig economy. 

Author: Govind B V 

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