Dispossession by platformization: The rise of on-demand recycling in urban India

Over the past decade, urban India has seen the emergence and proliferation of startups that are offering on-demand recycling services using web- and mobile-based platforms. These firms replicate the services of informal workers known as kabadiwalas who have historically made their livelihoods through trade in recyclable materials. Existing analyses of platformization in developed world contexts fail to explain the rise of platformization in India because of the particularity of the relationship between platform firms and the informal economy. This paper contextualizes the rise of platform recycling startups within a generally conducive policy environment focused on improving sanitation, encouraging entrepreneurship, and expanding the use of information technology in India. An examination of business models deployed by these firms reveals how and why the structure of recycling markets does not allow for a ‘lean’ model typically adopted by platform firms in other sectors. Rather than merely connecting service providers to consumers, these startups rely on aggregating recyclable materials and dispossessing intermediaries such as kabadiwalas in order to generate surplus value in an otherwise saturated market. Relying on an analysis of online content about these new firms, this paper examines the strategies that firms use to legitimize themselves and delegitimize kabadiwalas in an attempt to displace and dispossess them from the market space.