TECH4GOOD
Last week, we talked about how the internet is fast changing how work is done and how it spawned the development of the gig economy. In these trying times, gig work has become a critical survival lifeline for many people by providing livelihood opportunities. Today, we see over a million Filipinos listed as service providers on global work platforms, maybe hundreds of thousands engaged in online selling, and tens of thousands of independent contractors providing services on digital platforms.
Almost everyone benefits from the gig economy. For most of us, getting things done using gig work platforms brings not only convenience but better access, efficiency, affordability, and financial inclusion. Hiring service professionals such as plumbers and caregivers is much easier now using online service platforms. Employers benefit from gig work by gaining access to skilled talent when hiring full-time employees has become more challenging. Gig workers on the other hand benefit from flexibility and access to livelihood opportunities that may have been difficult to find before. MSMEs also benefit because these platforms provide easier access to buyers and wider market reach.
The gig economy is definitely opening up livelihood opportunities for everyone. Many Filipinos have turned to online freelancing or become independent service contractors for ride-hailing and delivery platforms as their main occupation. In fact, based on data provided by Grab, 46 percent of their partners did not have any regular source of income before joining the platform. A significant number of their partners have also signed up to augment their income from their regular work. These opportunities have proliferated today in every corner of the country where there is decent internet connectivity and is probably accelerated by the recent lockdowns.
Today, it is not uncommon to see differently-abled people working as gig workers providing services as basic as virtual assistance to more complex ones like analytics. Gig work has provided them the opportunity to participate in the mainstream economy. They do not have to care about mobility because, most of the time, they will be working from home. That is a major reason why a relatively high proportion of people with disabilities choose to engage in self-contracting as opposed to traditional work.
Gig work platforms also spur innovation and push digitalization leading to a more dynamic Philippine digital economy. It is safe to assume that the use of these digital platforms is contributing significantly to this growth and even driving the digital upskilling of the general population. As more people utilize online apps like Grab and become familiar with using digital technologies in their daily lives, it becomes easier for them to embrace digital as a way of life. Their merchant partners also become comfortable doing business using the platforms resulting in exploring new ways of scaling their business making them active participants in the digital economy.
Most of these platforms provide opportunities designed to better the lives of their partners, customers, and merchants. In a recent conversation with a Grab executive (Grab just celebrated its 10th year in the Philippines last month), I was amazed to hear that the platform has been providing support to its partners despite being independent contractors. These come in forms like providing working capital, free accident insurance coverage, scholarships for their dependents, telemedicine services, health financial assistance, and the recently launched Partner Assistance Fund which is intended to cushion the adverse effects of the current macroeconomic shifts in the country.
They are also committed to helping their partners accomplish their career goals beyond gig work. The Grab Academy platform provides Grab drivers and delivery providers the opportunity to enroll in upskilling classes in customer service, financial literacy, digital literacy, and other related topics designed to enhance their existing skills, pursue non-gig work opportunities and become competitive in a digital-first economy.
Most of these platforms have been collaborating with the government in areas like livelihood opportunities, policy development, and regulations. They all intend to continue these close working relationships. In the case of Grab, they have been collaborating with the government for many years now including their collaboration with the Presidential Commission for the Urban Poor where they joined the caravans of the Commission in different cities across the country to promote partnership opportunities for drivers and delivery partners.
Gig work is here to stay and everyone needs to work together to sustain it and make it work in terms of its potential to improve the lives of Filipinos. I am sure all of these platforms are willing to work with the government and provide new perspectives on the gig economy to make it work better for their partners, consumers, MSMEs, and everyone.
mon.ibrahim@aap.ph
(The author is the lead convenor of the Alliance for Technology Innovators for the Nation (ATIN), vice president of the Analytics Association of the Philippines, and vice president, UP System Information Technology Foundation.)
