Association could give food delivery players bigger voice

While an industry association set up by the three major food delivery companies here is ostensibly aimed at developing best practices for the sector, the timing of the move suggests that it could act as a louder, more concerted voice for these firms when responding to government policies or initiatives.

This was the view taken by Singapore Management University's Assistant Professor Terence Fan, who noted that the launch of the Digital Platforms Industry Association yesterday comes on the heels of increased scrutiny over the welfare of workers who rely on online platforms for income.

The Manpower Ministry had set up the Advisory Committee on Platform Workers last year to study how to better protect such workers. Its recommendations are due later this year.

In a Facebook post yesterday, labour MP Yeo Wan Ling, who is on the advisory committee, said the new association will add to the diversity of views and help shape the recommendations.

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 Fan said the new industry association could improve the lot of platform workers, but it is unlikely to herald any drastic changes.

The association should not have a negative impact on competition with adequate safeguards, such as avoiding discussions on worker remuneration, he added.

Mr Li Jianggan, founder of tech investment firm Momentum Works, said collaboration between the food delivery firms is not unexpected given the issues that need to be tackled. He noted that the companies are now aiming for profitability rather than growth, which means a shift from customer acquisition to operational efficiency.

Mr Li, who was foodpanda Singapore's managing director for five months in 2015, said: "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."

NUS business professor Law-rence Loh said it is good that the companies are taking the initiative to work together.

But he flagged that because the three companies make up almost the entire food delivery sector, consumers and workers may not have a choice should collective changes be made.

"The firms should strive for the highest possible protections, not the lowest common denominator," Prof Loh added.