Grab Thailand lost more than US$22 mil in 2018, while rapid growth led to losses nearly doubling in 2019. FMTNews Grab
Gig economy workers see their income slashed by more than half as the pandemic batters Southeast Asia.
But when transportation services halted under a city lockdown, Aji considered it a good day if he got more than two food delivery orders, which pay him US$0.70 each time. On some days, he has had none.“The situation is that there are many drivers but orders are few,” he said, asking to be identified only by his first name.
Unions representing Gojek and larger Singaporean rival Grab, Southeast Asia’s most highly valued startup at US$14 billion, say thousands of drivers are in the same situation, especially in Indonesia, both firms’ largest market.Their plight threatens a core promise of both companies: that they can improve the lives of tens of millions of people across Southeast Asia even as they provide big paydays for their blue-chip corporate and financial investors.
Each has avoided major layoffs so far, though Grab is implementing voluntary unpaid leave for staff and Gojek is reviewing its services. Executives and investors at both firms point to the resurgence of orders at Chinese ride-hailing company Didi Chuxing as cause for optimism. But with platforms taking only a 20%-30% commission that is shared with drivers, margins are slim. And growth did not materialise in every market during the lockdowns.
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