While the new rules will guarantee more benefits to the workers, for instance in the case of injury, the cost increase for the platform companies will be limited because they won’t need to take them on as full-time employees. Shares of GoTo, the provider of the Gojek ride-hailing service, advanced 1.1% in Jakarta in early Thursday trading. Grab rose 1.4% in New York on Wednesday.
Singapore’s ride-hailing and food-delivery workers are set to gain more benefits like insurance and pensions, but the platform companies using them won’t need to treat them as full-time employees.
In a decision affecting companies such as Grab Holdings Ltd., GoTo Group, Delivery Hero SE’s Foodpanda and Deliveroo Plc, the government said Wednesday it accepted all 12 recommendations from a committee working on new standards for the gig economy. The new rules will require legislative changes and will become effective in the latter half of 2024 at the earliest.
