First of two elements
On a Thursday afternoon, simply after the lunch rush, a pack of bikes pulled right into a slim alleyway in a Metro Manila metropolis. The riders parked their bikes in entrance of a makeshift relaxation space. The house resembled a typical Pinoy “tambayan.” Outfitted with a wall fan, and a water and a charging station, it’s sufficient for the weary riders to relaxation and recharge earlier than the “merienda” and dinner orders trickle in.
A former safety guard, a manufacturing facility employee, and a barangay staffer had been all introduced right here collectively by an app. Each day, they crisscross the bustling metropolis, wait at their designated spots in eating places and cafes, and produce meals to prospects proper at their doorstep.
The safety guard, Rico, not his actual identify, joined GrabFood in 2019. The platform gave him a approach out of his inflexible and gruelling job as a financial institution safety guard. (GrabFood is likely one of the extra well-liked meals supply companies within the Philippines. It’s one of many companies provided by the superapp Seize.)
Melinda, additionally not her actual identify, joined the platform as a result of it gave her the flexibleness she wanted as a mom of two. It promised higher pay, too.
One other rider, Lara, mentioned she was doing OK together with her earlier job in a barangay, however she acquired enticed when Seize got here in. The concept of not having a boss was undeniably interesting to her.
Having no boss, the liberty to decide on their very own working hours, and the promise of a better earnings have develop into a significant draw for Rico, Melinda, Lara, and lots of extra Filipinos to hitch the rising gig financial system.
The time period “gig” used to consult with a band’s efficiency sometimes scheduled after work hours or on a weekend. Now it has expanded to all kinds of duties, typically carried out by way of digital platforms 24/7. Gig work is pushed by a confluence of a number of components.
Prospects — those that can afford — more and more need comfort and companies on-demand.
Staff, in the meantime, are looking for options from the normal 9-to-5 job.
Firms, alternatively, intention to chop prices.
Digital platforms now are available in to bridge all these wants. They capitalize on this development by connecting retailers like eating places and cafés to us, the shoppers, and in between are the so-called gig staff.
Within the gig financial system, staff tackle task-oriented and time-bound service jobs with out signing a long-term contract. This permits staff to decide on when and the place to work, making it a great facet hustle for these with common jobs.
From October 2023 to June 2024, the Philippine Middle for Investigative Journalism (PCIJ) interviewed dozens of staff for this report. The advantages are certainly simple for riders and drivers who deal with this type of work as a sideline to earn additional earnings of their spare time. However for a lot of Filipinos, gig work is just not merely a “raket” — it has develop into their important supply of earnings.
This can be a massive deal particularly when unemployment and underemployment persist. However as a result of tech-driven companies have far outpaced current guidelines and rules, staff are sometimes deprived.
Meals-delivery and ride-hailing staff within the Philippines, whose day by day routine is dictated by an algorithm, battle with unsure pay, indebtedness, and the bodily toll of chasing incentives.
The dangers of gamification
Lara, the previous barangay employee, earned greater than P1,500 the day earlier than she was interviewed by PCIJ. For the 22 deliveries she made that day, she earned P1,372, plus P200 in incentives for making a sure variety of journeys, and a P20 tip, for a complete of P1,592.
The minimal day by day wage in Metro Manila was P610 on the time. At first, it might appear that Lara earns lots, however in spite of everything bills — fuel, meals, upkeep, and many others. — her take-home pay could possibly be decrease.
In instances the place they do earn greater than the minimal wage, the riders complain concerning the gruelling 12-15 hours they needed to hurdle.
For purchasers, it might sound so simple as fascinated about what we would like for lunch, opening the app, trying to find a restaurant, selecting from the menu, and in a couple of minutes, a rider might be assigned to get your meals for you. However there’s much more happening behind the scenes than we notice.
On the coronary heart of those apps are algorithms that counsel retailers to prospects, assign riders and drivers to passengers, and compute fares and incentives. This innovation makes issues environment friendly and handy for everyone. Nevertheless it’s additionally meant to earn a living.
Our analysis exhibits that platforms like GrabCar, GrabFood, MoveIT, Joyride, and Angkas implement varied incentive schemes designed to encourage staff to finish extra orders and bookings day-after-day. These incentives are provided on prime of their commonplace pay, functioning as “bonuses” awarded to staff who meet particular supply or trip targets — very similar to a sport.
And since firms can restructure or cut back fares or for instance, extra just lately, deduct the senior citizen and particular person with incapacity reductions from the employees’ pay, many staff actually go for the app’s incentive program.
The implications are probably critical. It may pose well being dangers and occupational hazard to the employees and by extension, prospects.
These incentive applications may additionally discourage staff from “multi-homing” or the apply of engaged on completely different platforms, which additional limits their flexibility and incomes potential.
Out-of-town drivers
Arnold (not his actual identify) spent 20 years as an abroad Filipino employee. Now, he drives a GrabCar. The automobile is owned by his sibling to whom he remits a P1,000 “boundary” (a quota payment) day by day.
Arnold is from Batangas, a province south of Manila. To avoid wasting on prices and full as many journeys as he can, he sleeps in his automobile and goes residence to the province solely throughout Wednesdays, his coding day. There are others like him who by now already know most of Metro Manila by coronary heart and the locations the place they’ll park their automobile and never get towed, take a shower, and relaxation.
Arnold says he’s in search of a spot to hire. The issue nevertheless is discovering parking house too.
“Kasi mahirap naman tutulog ka nang sarap na sarap ‘yung tulog mo. Hindi na sasakyan naman eh, iiwan mo lang kung saan, ah, hindi protected. Para hindi ka rin makatulog ng, ano, hindi kagaya dito, kahit na, dito na, tulog sa kalsada,” he mentioned.
As a result of he virtually lives in his automobile, he will get to drive every time he can. Admittedly, sleep is way from comfy.
Arnold is ready to attain his goal earnings, together with the P1,000 boundary a day. Not all drivers personal their car. Many drive different folks’s automobiles and remit a boundary on the finish of the day. One other setup is named “boundary-hulog” the place a driver pays each boundary and “hulog” for the automobile in order that they get to personal it after just a few years.
Silver, gold, platinum
With GrabCar, drivers can attain increased tiers — silver, gold, or platinum — based mostly on the variety of rides they full. The upper the tier, the decrease the “kaltas” or the fee Seize deducts from their earnings, with the usual fee being 21%.
A driver must make 450 rides a month to achieve platinum, the very best tier; 400 for gold, and 250 for silver.
Meals supply has an identical incentive scheme. In rider parlance, they name it “butas.” On their cellphone screens, there are spherical icons that may be unlocked by incomes gems. One trip earns 10 gems. The extra rides they take, the extra gems, the upper the motivation.
In 2019, the riders interviewed mentioned they might simply earn P800 in incentives a day. However Seize has modified this scheme a number of instances. The identical variety of rides would earn them a decrease quantity now.
Riders additionally attempt to attain the next tier to earn different rewards reminiscent of insurance coverage, which on the time of the interview, was offered to those that have gold and platinum standing. Just like GrabCar, staff first enter as members, and might then transfer as much as the silver, gold, and platinum tier. To achieve platinum, a rider should make 480 rides in a single month.
“Mangyayari hindi ka na matutulog kasi isang buwan, 480 rides,” Rico mentioned.
“Ako po sa private, ilang beses ko po naranasan na tumatakbo po ako, minsan hindi, nakaidlip, nasa gutter na po ako,” Carlos mentioned.
“Saka minsan, minsan nga, pag nagbibiyahe ko, naka-pikit lang ako yun,” Lara mentioned.
“Pinipilit na bumiyahe para mahabol yung… goal na incentives. Yung gems,” Rico mentioned.
Now, the riders mentioned this quantity is tough to achieve particularly in the event that they serve an space exterior essentially the most busy cities like Makati, for example.
Seize: ‘Security first’; Joyride, Angkas: mum on concern
PCIJ reached out to Seize concerning the incentive program. We requested how the corporate ensures that the app’s algorithm doesn’t trigger hurt or encourage conduct that may pose dangers to its staff.
Seize mentioned it has at all times prioritized passenger security.
“… we have now carried out a number of measures to safeguard our drivers and passengers. Our platform consists of options that monitor driver exercise and immediate breaks if extended driving hours are detected. Security options are a part of our dedication to stopping fatigue-related incidents,” Seize mentioned in writing.
Seize additionally mentioned that it “repeatedly assesses and evaluates the protection information of our drivers to make sure that solely drivers with wonderful driver security information are allowed to service commuters.”
PCIJ additionally requested the corporate if it has examined these sorts of incentive applications and their potential influence on staff earlier than implementing them. For example, does the corporate monitor the variety of hours staff spend on the highway?
In accordance with the response: “Our incentive applications are designed with the well-being of our driver-partners in thoughts. We repeatedly overview and refine these applications to make sure they promote protected and sustainable driving practices. Whereas particular operational particulars are confidential, we guarantee you that our insurance policies are aligned with the business’s greatest practices and regulatory necessities.”
Angkas had initially entertained our request for an interview however didn’t grant one finally.
Joyride has not responded to an identical request as of press time.
Fairwork Philippines findings
A 2023 examine revealed by Fairwork Philippines, a challenge led by the De La Salle College with the Ateneo de Manila College, College of the Philippines Diliman, and companions from the College of Oxford, displays PCIJ’s findings.
The report evaluated Angkas, Borzo, GrabCar, Seize Meals and Seize Categorical, FoodPanda, Joyride, Joyride Automobile, Lalamove, Maxim, and TokTok, and the way these platforms meet the 5 ideas of “honest work.”
The 5 ideas of “honest work,” composed of honest pay, honest circumstances, honest contracts, honest administration and honest illustration, had been developed by way of an intensive literature overview of revealed analysis on job high quality and conferences at UN Commerce and Growth (UNCTAD) and the Worldwide Labor Group and in-country conferences with native stakeholders.
The desk beneath exhibits what every precept corresponds to. A platform is awarded a primary level if proof means that it does meet the situation. The second level below every precept can solely be awarded if the primary level for that precept has been awarded. If there isn’t any verifiable proof out there that meets a given threshold, the platform is just not awarded that time. A platform can rating a most of 10 factors.
Solely GrabCar, Seize Categorical, GrabFood, Lalamove, and Angkas managed to earn factors however even these are too few for the employees in these firms to be thought of as receiving honest work.
Whereas these platforms provide staff the chance to safe their households’ wants within the context of poor employment options within the nation, they face “a number of occupational well being and security dangers” day by day on the highway, together with shortcomings by way of fundamental security protections from accidents, sicknesses and dying, the report discovered.
Just like our analysis, Fairwork Philippines discovered that “(g)ig staff are likely to stretch their working hours to safe extra gigs to earn what they should stay afloat amid fluctuant charges, opaque pay constructions, inflexible rankings, and rising competitors.”
As well as, the report emphasised that staff are compelled to do that not solely as a “free” selection, but in addition as a consequence of unfair or predatory pay and incentive constructions. “The dearth of measures to guard staff’ security heightens their vulnerability, and the absence of security nets implies that any sudden lack of ability to work redounds to livelihood insecurity,” the report mentioned.
Inherent ‘asymmetries’
In accordance with a Philippine Institute for Growth Research (PIDS) analysis, the issues encountered by the riders and drivers are attributable to “asymmetries” inherent in lots of apps or platforms.
These asymmetries give rise to “structural inequalities,” the place firms — like Seize, Angkas, Joyride, and FoodPanda — profit essentially the most. They’re adopted by retailers — like our go-to eating places and cafés — after which, us, the shoppers.
On the backside can be staff, who additionally grapple with having the least info and understanding about how issues work on the platform reminiscent of how fares are calculated, why they’re getting pick-ups which might be too far, find out how to contest low rankings, resolve disputes, deal with account suspension and termination.
For example, Seize driver Rolly, not his actual identify, acquired quickly blocked from the app as a result of he supposedly obtained unhealthy rankings from a buyer. A passenger complained that he nonetheless collected cash from him even when he was paying by way of GrabPay.
“So, ang ginawa ko, nagreklamo ako kay Seize. ‘Sir, wala akong, ginanon ko sa ano, Sir, Ma’am, sabi ko sa Seize, wala po akong siningil sa kanya.’ Naka-cash… alam ko po ang obligasyon ko bilang driver. Hindi po ako, ano, maging patas naman po tayo. Ba’t ganun, sila lang pwede magreklamo? Paano kami?” mentioned Rolly.
Rolly mentioned a Seize consultant responded to him in English, promising to look into the matter. The staffer mentioned they’d relay the knowledge to the client and anticipate his suggestions.
“Hihintayin natin yung suggestions niya? Eh, kung hindi mag-feedback yan, eh di wala din. O, kung mag-feedback man yan, anong sasabihin niya? Hindi, nagbayad kami. Siningil pa rin kami. Naka-cashless kami. O, sino bang papaboran nila? Hindi naman kaming driver, sila pa rin. Kaya, totoo yun, Ma’am. Totoo nangyari sa akin yung dalawang beses,” Rolly mentioned.
“Ganun kasi si Seize. Naka, mayroon talaga kaagad silang hatol. Kahit na, basta yung pasahero ang nagreklamo, could hatol kaagad sila sa driver. Wala silang, ano, wala silang, yun nga, wala silang equality. Kasi, yun naman po talaga, at sa totoo lang, ang platform nila, Ma’am, gumagana as ma-boost. Para maboost po yung dami ng pasahero,” he added.
Fairwork: Seize fares higher than others however nonetheless not sufficient
GrabCar, the two-wheel automobile service, truly has a greater report of managing these sorts of disputes, in response to the 2023 report of Fairwork Philippines. Within the analysis, GrabCar and Seize Categorical every scored some extent for having communication channels that had been accessible to staff reminiscent of help chat and Security Middle inside the app.
On their web site, there’s a step-by-step information on find out how to resolve a wide range of considerations with directions written in Filipino. Ought to the employee nonetheless need assistance, a type is offered for additional help.
The researchers realized from staff that the remainder of the platforms are unresponsive to such considerations. If platforms do reply, they reply slowly and inconsistently, rendering any help unreliable for them.
The report additionally discovered that help communication is usually quick for considerations associated to buyer points whereas response takes days or is tough to get for staff’ points like unfair deactivations, penalties, and others.
The app making government choices like it is a frequent ache level amongst drivers.
One other frequent concern is the app’s instructed route. That is used to compute and present fares upfront. Nevertheless it doesn’t at all times replicate the precise route taken by the driving force.
For instance, when the app suggests a route that goes by way of roads with tolls, prospects can direct drivers to go elsewhere to save lots of on toll charges. This implies the calculated fare, which might be paid by the client, is not going to match the precise distance and length of the trip.
One driver instructed that maybe the app may give prospects route choices with or with out toll.
Customers additionally must be higher knowledgeable about how the app works.
Platforms bear dangers, too
To make certain, the PIDS examine additionally highlighted that platforms bear numerous dangers too and that not all startups are profitable.
“Upfront investments are made in constructing the platform and losses are incurred in scaling up earlier than community results are achieved,” the researchers wrote.
For example, Seize’s native subsidiary, MyTaxi PH, has incurred recurring losses prior to now, leading to a capital deficiency of P8.2 billion in 2021 and P7.7 billion in 2020.
Its 2021 monetary assertion obtained from the Securities and Trade Fee famous that “these circumstances, amongst others, point out a cloth uncertainty which can forged vital doubt concerning the Firm’s skill to proceed as a going concern and due to this fact, that it might be unable to understand its belongings and discharge its liabilities within the regular course of enterprise.”
These losses, in response to the SEC report, had been incurred whereas the corporate was within the stage of aggressively rising its enterprise by way of “market penetration and constructing model loyalty from drivers and passengers.”
“Seize Holdings Inc., the mom firm, gives monetary and operational help to MyTaxi PH and is dedicated to proceed offering such help to allow the corporate to proceed as a going concern,” the auditors famous. – With further analysis by Jabes Florian Lazaro and Rosemarie Corpin, PCIJ, December 2024
Subsequent: Amid authorized gaps, riders and drivers push for rights in courts, on streets
This Philippine Middle for Investigative Journalism report was produced in partnership with the Pulitzer Middle’s AI Accountability Community.
This text was republished with permission from the Philippine Middle for Investigative Journalism.
