Beyond the Productivity Paradox: Algorithmic Management and the Multidimensional Sustainability Crisis of Ride-Hailing Drivers in Indonesia
Keywords:
Algorithmic management ride-hailing gig economy sustainability worker precarity platform governance electric vehicles IndonesiaAbstract
Ride-hailing services have become an integral part of urban transportation in Indonesia. However, this sector faces a critical contradiction: while algorithmic management undeniably enhances operational productivity, it concurrently contributes to a significant, multidimensional sustainability crisis for its millions of workers. This systematic narrative review synthesizes recent empirical and interdisciplinary research (2015-2025) to examine this intricate challenge. By moving beyond purely economic analyses, a comprehensive multidimensional sustainability framework, encompassing economic, social, human, and environmental aspects, is employed to analyze the impacts of algorithmic control on driver welfare. The synthesis indicates that stringent rating systems and opaque order allocation mechanisms can undermine drivers' psychological well-being and financial security. These algorithmic mechanisms can also reinforce existing societal biases, leading to disproportionate impacts on vulnerable driver groups. Inadequate legal classifications for drivers and insufficient regulatory oversight exacerbate existing systemic inequalities, perpetuating a cycle of precarious work. Despite these challenges, the review identifies promising, yet underutilized, technological innovations, including sophisticated non-linear dispatch algorithms, motivation-focused gamification strategies, and electric vehicle integration. This study concludes that addressing this crisis requires a fundamental re-evaluation of platform governance, seamlessly blending human-centered systems design principles with robust, forward-looking policy reforms. Ultimately, this paper aims to provide actionable, evidence-based recommendations for policymakers and platform developers to enhance drivers' quality of life and foster a productive, equitable, and sustainable national transport system.
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