The future of the gig economy in Singapore

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Hello readers,

Before joining Tech in Asia full time, I was working as a freelance writer. I wrote about a variety of topics, ranging from the role of AI in security to the Christmas events at Universal Studios Singapore, and I enjoyed the flexibility that being a freelancer afforded me. Eventually, I decided that I needed a more stable source of income and the support and protections that being employed full time would offer, which is how I wound up where I am today.

Indeed, many gig workers have found themselves in the same position I was in a few years ago. Being an independent contractor working for a food delivery company or ride-hailing firm sounds pretty decent, but the lack of protections and opportunities for career progression can make things pretty challenging, especially in the long run.

However, countries around the world are looking closely at gig workers and contemplating whether they ought to be reclassified as employees – and Singapore is no exception.

Today we look at,

• What the Singapore prime minister’s comments about gig workers could mean for online platforms
• Ula’s plans after its latest round of fundraising
• Other newsy highlights such as Indonesia’s newest unicorn and Thrasio’s entry into India

PREMIUM SUMMARY

G is for gig economy

Gig workers in Singapore have come into the spotlight, as Prime Minister Lee Hsien Loong paid tribute to them at his recent National Day Rally speech. Lee declared that “delivery workers are, for all intents and purposes, just like employees” – and his words may kick off some significant change in how gig workers are classified in the city-state.

• Employee or not? Gig workers in Singapore, like elsewhere in the world, are often labeled as “independent contractors.” They often don’t have the basic job protections afforded to employees and face limited career prospects.
• The bottom line: Reclassifying gig workers may significantly stress the bottom lines of online platforms. Recognizing gig workers as employees would mean that these businesses would have to shoulder costs like medical insurance, minimum wage, paid leaves, and payroll tax, adding 20% to 25% more costs to their business model. It could also rattle investor confidence, as seen with Uber and DoorDash in the US.
• For the better: The general consensus in Singapore is that most are on board with enhancing protections for gig workers and providing them with a more secure future. However, only time will tell how exactly things will play out.

Read more: Should gig platforms fear Singapore PM’s remarks?

PREMIUM SUMMARY

Ooh la la, it’s Ula

Indonesian business-to-business marketplace Ula has raised US$87 million in its series B funding round co-led by Tencent, Prosus Ventures, and B Capital. Some other new investors in this round included Bezos Expeditions, the investment firm of Amazon founder Jeff Bezos, as well as Southeast Asian funds Northstar Group, AC Ventures, and Citius.