Page 9 - Voice and representation of platform driver in VietNam

CHAPTER 1: Work platforms - an overview 3

CHAPTER 1: WORK PLATFORMS – AN OVERVIEW

The digital economy is widely touted as a driving force about 40 percent each year and is the second fastest
for growth in upcoming decades. According to a report growing one in the region, behind only Indonesia.
by Google, Temasek and Bain & Company, Southeast Contributing 5 percent of the country’s GDP with a gross
Asia’s digital economy has grown more than three-fold merchandise value of USD12 billion in 2019, Vietnam’s
between 2015 and 2019 to reach USD100 billion. It digital economy is expected to almost quadruple in size
is expected to grow to USD300 billion by 2025 and to reach USD43 billion by 2025 (Google, Temasek and
account for 8.5 percent of the region’s GDP. Vietnam’s Bain 2021).
digital economy is similarly growing at a fast pace of

The growth of the digital economy has created In Vietnam the ride-hailing platforms, as the focus of
opportunities for new business models and services this research, have been expanding at an annual rate
to emerge, most prominent of which are the digital of 40 percent since 2014. The value of this market is
platforms. These platforms are spaces for information expected to reach USD2 billion by 2025. After Uber’s
exchanges that connect supply and demand. They exit from Vietnam in 2018, Grab became the biggest
act as an intermediary between individuals, and make ride-hailing app, accounting for a 73 percent market
it possible to hire workers for specific tasks for fixed share. Be and Go-Viet have 16 and 10 percent of
terms. These platforms change companies by reducing market values, respectively. 8
transaction costs, making unprofitable business
activities viable, challenging the market structure, and Business Model
transforming labour relations. In Vietnam, the growth
of the ‘gig economy’ started in 2014 with the entry Work platforms present themselves as IT enterprises that
of ride-hailing platforms such as Grab and Uber, which act as intermediaries to facilitate the encounter between
operate in several markets across the region. Over the the users and the service providers rather than providing a
past few years, digital platforms have become more specific service, such as transportation or delivery. In case
varied and encompassed many other sectors such as of the ride-hailing apps, the drivers/riders are defined as
e-commerce, food/parcel delivery, freelance tasking, ‘business partners’ not ‘employees’. The business partners
and healthtech/telemedicine. The original ride-hailing are supposed to enjoy optimum flexibility of working (or
platforms like Grab and Gojek (or Go Viet) have also not) with the platform companies by simply turning on
expanded their services to include food/parcel/grocery or off their apps. The apps also claim to provide fair and
delivery, housecleaning, personal beauty and hairstyling unbiased treatment of the drivers/riders as the allocation
services, entertainment ticket-selling, and telemedicine. of work and payment are managed by the algorithms (De
Stefano 2016).

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Voice and representation of platform drivers in Vietnam