SINGAPORE: Grab will expand its support for the drivers who give rides and deliver meals to the superapp’s users, co-founder Tan Hooi Ling said, as governments call for more benefits for these and other gig economy workers.
In Singapore, the government has called on tech companies like Grab to ensure a certain level of security for the workers who deliver the platform’s services. Although drivers and delivery riders can choose how long they want to work and how many tasks they want to complete, they lack the benefits full-time workers enjoy.
In an interview with Nikkei Asia on the sidelines of the Nikkei Global Management Forum, Tan called the city-state’s request an “important opportunity” for Grab to create and tailor frameworks for its drivers as a way “to set up a sustainable economy”.
“We have been working very closely with the government throughout this process, and we actually think it’s necessary and support the review,” she said. “We always care about our partners, and we try to make sure we are effectively creating value for them.
“We need to make sure that whenever they decide to spend time on our platform, it is relatively valuable for them.”
With businesses ranging from ride-hailing to digital banking, from food delivery to advertising, Grab has expanded into eight Southeast Asian markets. Since its inception in 2012, it has signed up 5 million drivers and delivery task handlers.
Platforms like Grab offer some training, benefits and insurance to their gig workers but largely avoid treating them as employees. More protection could potentially result in higher labour costs and further weigh down companies still striving to turn a profit.
According to a recent study by the National University of Singapore’s Institute of Policy Studies, food delivery riders in the city-state reported earning a median monthly income of SG$1,925 (around US$1,370), less than half the country’s median monthly salary last year.
The report, based on a survey of around 1,000 task-takers who obtained at least a quarter of their monthly income from such work, also found that 38% who rode for 51 hours or more in a week were in an accident.
“We want to make sure that you do it in a way that’s sustainable for them,” Tan said. “We also want to do so in a way that helps protect them from unforeseen circumstances, and that’s why we offer like accident insurance.”
According to its own reviews and feedback, Grab has found that flexible hours are the most appealing aspect of the job for 70% of its drivers.
“I think the most important thing on this,” Tan said, “is creating feedback that is safe, inclusive and transparent so that we can ensure fair working conditions.”
Source: https://www.freemalaysiatoday.com/category/business/2022/11/09/grab-to-step-up-support-for-gig-economy-workers/