The recent ban on social media platforms in Nepal has highlighted the vulnerabilities of the gig economy, which plays a crucial role in the country’s economic landscape.
The global gig economy employs nearly 200 million people through digital platform-based companies such as Uber, Food Panda, Zomato, and Oyo. A significant portion of gig work also occurs on social media platforms like WhatsApp, WeChat, and Facebook. This connection between the gig economy and social media becomes particularly evident during instances of public unrest triggered by social media bans.
On September 4, Nepal implemented a ban on 26 social media platforms after issuing a week-long ultimatum. This decision was not only about curtailing freedom of speech but also about the potential loss of livelihoods in a nation where tourism contributes 6.7 percent to the national GDP, amounting to over two billion USD. The protests that followed underscored the growing importance of the gig economy in Nepal.
The tourism sector in Nepal was among the first to leverage the expansive reach of social media, as noted by the Nepal Economic Forum. Jiban Ghimire, managing director of Shangri-La Nepal Trek, expressed the gravity of the situation, stating, “For us, social media used to be a very popular tool for communication. That’s now gone, and it’s a nightmare-like situation. No communication, no business.”
While the social media ban is often cited as the catalyst for the protests, there has been a noticeable lack of analysis regarding the role of the social media-driven gig economy in these events. This oversight may hinder lawmakers’ ability to craft effective policies that address the realities of the gig economy in developing countries like Nepal. Understanding the burgeoning gig economy in South Asia, particularly in relation to social media, is essential for future policymaking.
The gig economy, also referred to as the sharing economy or collaborative consumption, is characterized by non-permanent and flexible freelancing jobs facilitated by online platforms that connect service providers with consumers. This sector can be considered a “third front” in the workforce, transforming not only how people work but also how they live globally.
In Nepal, the gig economy is primarily unorganized or semi-organized, with many workers relying on digital platforms to find jobs or offer services. Many gig workers operate from home-based enterprises and lack employer-provided social security. This is particularly true for small-time tour operators and individual tourist guides who depend on social media for their livelihoods.
When the social media ban was enacted, the tourism industry in Nepal was hit hardest. The ripple effects extended to related unorganized jobs in cafes, eateries, and transportation services. While the immediate impact on tourism has been widely reported, many associated effects remain overlooked.
Nata Travel and Adventures Pvt. Ltd, a travel agency based in Kathmandu, highlighted the ban’s immediate and profound consequences in a blog post on September 6. A representative from a trekking company in Thamel, a commercial neighborhood in Kathmandu, noted that “Eighty percent of our bookings used to come from Instagram DMs or TikTok videos.”
As Nepali policymakers reflect on the protests and the implications of the social media ban, they must recognize that their focus cannot solely be on policy innovation or control over platforms like Facebook, Instagram, WeChat, and TikTok. They need to grasp how social media is propelling the gig economy within families and communities across Nepal. A holistic approach is necessary, one that encompasses not just tourism but also the broader implications for the gig economy.
In an article for the Nepal Economic Forum, Sara Pradhan emphasized the need for the government to adapt its laws to foster employment opportunities and innovation in light of emerging jobs. She pointed out that Nepal could learn from its neighbors, India and Bangladesh, regarding legal classifications of workers, job benefits, and protections against exploitation.
Venus Upadhayaya, a MOFA 2025 Taiwan Fellow and Visiting Scholar at National Chung Hsing University in Central Taiwan, is conducting doctoral research on perspectives regarding the unorganized sector. Her insights contribute to understanding the complexities of the gig economy in Nepal and the challenges it faces.
As the situation unfolds, it is clear that the intersection of social media and the gig economy in Nepal is a critical area for policymakers to address. The future of many livelihoods hangs in the balance, underscoring the need for thoughtful and informed legislation that supports this evolving economic landscape.
Source: Original article