Grab vows ‘inclusive growth’ for Asean’s gig economy

Grab vows ‘inclusive growth’ for Asean’s gig economy

US$1 million in initiatives aimed at improving the well-being of drivers, riders, and merchants.

Business partners can get consulting and operational support to expand online, from food deliveries to advertising.
SINGAPORE:
Southeast Asian superapp Grab will continue investing in the region’s talent pool through training and support programmes, CEO Anthony Tan said at an event on Thursday, vowing to ensure the ecosystem becomes sustainable for its partners and workers.

As part of these measures, the Singapore-based tech company said it will set up a merchant centre at its headquarters where Grab’s small business partners can receive consultations and operational support to expand their businesses online – from food and grocery deliveries to advertising.

Speaking at an event to mark the company’s 10th anniversary and the opening of its new headquarters located in the city-state’s high-tech cluster, Tan said the efforts are part of the company’s “long-term commitment towards inclusive growth and innovation in the digital economy”.

Besides the consultation services, the tech company also announced it will provide US$1 million worth of scholarships and bursaries annually to students across its markets. The programme comes under its fund to support initiatives aimed at improving the welfare of its drivers, delivery riders and merchants.

“We are investing in and creating equal opportunities for Southeast Asian tech and talent development,” Tan added.

Grab’s pledges come as platforms in the “gig economy” face calls from governments to better support their workers, who enjoy flexible working conditions but often lack the benefits that full-time workers enjoy.

In his annual address to the nation last year, Singapore’s prime minister Lee Hsien Loong said he was “especially concerned” about delivery workers and called for measures to ensure more security for them.

Online platforms like Grab and its rival Foodpanda largely avoid treating their gig workers as employees. They offer some training and welfare programmes, including insurance, but more protection would entail higher labour costs for these companies, which are still striving to become profitable.

Grab’s event on Thursday offered a chance for the company to showcase its efforts on this front to the government, as it was attended by Singapore’s deputy prime minister Lawrence Wong, the new heir apparent to Prime Minister Lee.

Tan and co-founder Tang Hooi Ling sat next to Wong during the ceremony and walked him through a series of booths where Grab merchants and staff members explained the company’s efforts over the years in person. One panel was titled “Building a Sustainable Gig Economy in Southeast Asia,” explaining the company’s welfare and safety track records.

Other gig economy companies have also been making efforts to ensure sustainability for their workers. In July, Foodpanda opened an academy offering its delivery drivers free or discounted access to over 200 courses covering areas such as finance and digital skills.

At the launch of the academy, CEO Jakob Angele said the business model is very reliant on riders, and it is “very important” to attract and maintain them.

“We naturally have a strong incentive to support and empower our riders as much as we can,” he said.

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