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GRAB, DELIVEROO AND FOODPANDA JOIN HANDS TO LOOK INTO BEST PRACTICES, WORKERS'
HEALTH AND SAFETY


The three firms are banding together under the Digital Platforms Industry
Association. FILE PHOTO: LIANHE ZAOBAO
Kok Yufeng
Transport Correspondent
Updated
27 Mins Ago
Published
11 Hours Ago
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Purchase Article Copy permalinkCopy to clipboard
https://str.sg/wRFU


SINGAPORE - The three major food delivery companies here – Grab, Deliveroo and
foodpanda – have set up an industry association to represent digital platforms,
ahead of possible changes to the law to give platform workers greater
protection.

In a break from the typically cut-throat competition seen among e-commerce and
online service platforms, the three firms on Thursday (Aug 18) said they are
banding together under the Digital Platforms Industry Association (DPIA) to
strengthen the industry’s practices and raise standards.

In a statement, the association said it plans to identify areas for improvement
and work with the Government and other stakeholders to create solutions that
“reflect the voices of its delivery partners and merchants”.



It also intends to introduce an industry code of practice that will incorporate
best practices relating to the health and safety of food delivery workers.

Observers said the new association may lead to improvements in the welfare of
delivery workers, which could in turn improve service quality for consumers. But
these improvements are likely to be incremental and materialise only in the
longer term, they added.

Singapore Management University’s Assistant Professor Terence Fan, who
specialises in transport issues, said the timing of the move suggests that the
intention is for this dedicated association to act as a larger, more concerted
voice when responding to government policies or initiatives. 




But it is unlikely to herald any drastic changes, he noted.

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This development comes as the Advisory Committee on Platform Workers is expected
to propose ways to improve retirement and housing adequacy, work injury
compensation and bargaining power for cabbies, private-hire car drivers and
freelance delivery workers later this year.

The committee was set up last September by the Manpower Ministry to study how to
better protect workers who rely on digital platforms for income.

It has been discussing the issue with individual platform companies.



Its recommendations, if accepted by the Government, could lead to legislative
changes – for instance amending the Central Provident Fund (CPF) Act to require
platform companies to make CPF contributions, and the Work Injury Compensation
Act to cover platform workers.

In response to queries, the association said its members will still engage
individually with the advisory committee as each company has its own business
model and interests.

There are no plans for wider data sharing between members. Instead, members will
collaborate to “find common ground in the spirit of improving the platform
ecosystem”, said a spokesman, without elaborating.

The association plans to develop initiatives in areas such as education and
awareness, rider matters and merchant development, she added. 

While it will initially focus on food delivery, the association plans to expand
membership to sectors such as ride-hailing or goods delivery.

The association has three office-holders and 12 executive committee members for
now, split evenly between the three founding companies. Its first president is
Mr Jason Parke, general manager and head of operations at Deliveroo Singapore.

More On This Topic
Food delivery war in S'pore hots up even as some players drop out
Delivery set to remain an essential part of business for restaurants even
post-pandemic

Asked if the association could affect competition or create conflicts of
interest among its members, its spokesman said the DPIA will comply with the
rules of the Registry of Societies and the Competition Act.

Prof Fan said with adequate safeguards, such as avoiding discussions on worker
remuneration, the association should not have a negative impact on competition,
and instead foster more dialogue within the sector.

National University of Singapore (NUS) Business School’s Associate Professor
Nitin Pangarkar said the companies appear to be showing a united front in order
to put forward their side of the story. “But the Singapore Government is less
susceptible to lobbying than in other countries, so I don’t know how successful
that representation would be,” he added.

Prof Pangarkar said the association also represents the maturity of the food
delivery industry, which had been focused mainly on growth and gaining market
share.

Mr Li Jianggan, founder of tech investment firm Momentum Works, said the
companies now need to aim for profitability rather than growth, meaning a shift
from customer acquisition and discounts to operational effiency.

More On This Topic
Ride-hailing and delivery jobs are here to stay - let's make them work
Gig workers in S'pore need more structural support: Observers

Mr Li, who was foodpanda Singapore’s managing director for five months in 2015,
said collaboration between the food delivery firms is not unexpected given the
issues that need to be tackled, such as those around worker welfare.

“The best approach to address some of these issues is to form industry and
ecosystem-wide dialogues, and that has been the case in other more established
industries,” he added.

NUS business professor Lawrence Loh said it is good that the companies are
taking the initiative to work together to tackle these issues.

But he flagged that because the three firms make up almost the entire food
delivery sector, consumers and workers may not have a choice should the
association decide to make similar changes to their policies.

“They should strive for the highest possible protections, not the lowest common
denominator,” he said.


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MCI (P) 031/10/2021, MCI (P) 032/10/2021. Published by SPH Media Limited, Co.
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