Is change needed for Grab and Gojek drivers?

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Hello readers,

Booking a cab or ordering food delivery within minutes are conveniences I’ve come to expect, but I’d never paid much thought to the fact that Grab and Gojek drivers don’t enjoy the same benefits that full-time employees receive. What does this arrangement mean for them?

Today we look at:

• Whether Grab and Gojek driver-partners should be considered employees
• Some of Southeast Asia’s fastest-growing firms
• Other newsy highlights such as Grab’s impending listing and Travelex’s partnership with Nium

PREMIUM SUMMARY

Is change calling at Grab and Gojek?

Super apps Grab and Gojek have long referred to drivers on their platform as “partners” – a term that defines them as contractors and not employees of these tech giants. Could it be time to rethink the arrangement, though?

• Imbalanced relationship: According to Hendry, a full-time ojek driver, partners who reject orders more than once could face a significant decrease in incoming orders for the next few days. This leaves them little choice but to complete orders even under dangerous conditions – such as in flooded areas – with minimal protection for mishaps while on the job.
• Standstill: In February, a UK court ruled that ride-hailing major Uber must now classify its 70,000 driver-partners as workers instead of self-employed personnel. Indonesia’s authorities similarly discussed the issue at least twice in 2017 and 2018, but talks ultimately went nowhere because Grab and Gojek are classified as ride-hailing and not transportation companies.
• Split camps: Drivers themselves remain divided on the issue, though. While some ojek drivers have independently joined BPJS Kesehatan – the Indonesian government’s national pension system – others want to maintain freedom over their working hours.

Read more: Should Grab and Gojek drivers be considered employees, not contractors?

STARTUP SPOTLIGHT

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