Grab, Deliveroo, foodpanda unite to improve practices and standards

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 companies yesterday said they are banding together under the Digital Platforms Industry Association (DPIA) to strengthen the industry's practices and raise standards.

The association 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 said yesterday.

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.

This latest 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 better to 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", a spokesman said, 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 said it plans to expand its 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.

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.

Singapore University of Social Sciences transport economist Walter Theseira noted that industry associations are not new.

"At best, they can help to coordinate industry policies to help markets function better and promote public welfare. They can also be anti-competitive and coordinate policies that promote business interests at the expense of others," Associate Professor Theseira said.

"In reality, they may end up doing a bit of both. It is too early to tell," he added.