India’s gig economy is reshaping urban labor markets, offering young workers aged 18–30 a lifeline of flexible, accessible jobs through platforms like Uber, Zomato, and Upwork. With 15 million gig workers, 60% under 30 (NITI Aayog, 2023), and urban smartphone penetration at 78% (Statista, 2023), this sector thrives in cities like Bangalore, Delhi, and Mumbai, driven by demand for ride-sharing, food delivery, and freelancing. For young urbanites like Amit, a Swiggy delivery rider, or Priya, an Upwork freelancer, gig work provides quick income and skill-building opportunities without requiring formal qualifications. Yet, challenges like income instability, lack of benefits, and long hours threaten sustainability, particularly for low-skill workers. This study explores the opportunities and challenges of the gig economy for urban India’s youth, using a quantitative approach with data from a sample of 395 gig workers across major cities. The objectives are to evaluate economic and social benefits, identify challenges like income volatility and health risks, analyze socio-economic impacts, and propose policy solutions. Findings show 41.0% of workers value flexibility, with 41.8% earning ₹15,000–₹25,000 monthly, but 37.0% face income instability and 27.8% lack benefits. The gig economy boosts urban economies, contributing 1.25% to GDP (NITI Aayog, 2023), but risks widening inequality, especially for women (14.9% of workers) and low-educated youth (40.0% high school). With India’s urban population set to reach 600 million by 2030, the gig economy could employ 25 million by 2028, demanding reforms. The paper recommends minimum wage guarantees, skill development programs, and expanded social security to balance opportunity with stability, ensuring the gig economy empowers India’s urban youth while addressing its pitfalls.