Mandatory CPF, job stigma keep food delivery riders up at night: study

MANY food delivery riders are satisfied with their work but feel that it is misunderstood, according to a study by Blackbox Research released on Wednesday (Mar 23). There are also concerns about the possibility of Central Provident Fund (CPF) contributions being made mandatory.

Conducted between September and October 2021, the study polled 175 Singapore food delivery riders working for Grab, Deliveroo and foodpanda. Blackbox also conducted 2 focus groups with 16 riders.

Asked what appeals to them about gig work, almost all respondents agreed or strongly agreed with factors such as flexibility to manage their time and being able to earn extra money when needed. Some 99 per cent expressed job satisfaction, with 23 per cent feeling strong satisfaction.

However, many riders also feel a stigma, with three-quarters believing that their work is often misunderstood. About 93 per cent said that the stress and challenges of their work are underestimated by the public.

At the same time, there are concerns over how new regulations for gig work, with Singapore's ongoing review, could impact riders' livelihoods.

Based on the focus groups, Blackbox found that riders are worried about the opportunity costs of mandatory CPF contributions, such as less cash flow for immediate financial needs.

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Out of those surveyed, 45 per cent are currently not contributing to their CPF Medisave account. Of this group, only 22 per cent said they would be compelled to do so if the government made it compulsory.

The main reasons cited for this were not having a fixed monthly income, not having as much savings that they are able to directly manage and a significant reduction in disposable income.

"Already, there are implementation issues with existing non-traditional employees such as self-employed individuals. They are more likely to under-declare earnings currently and delivery riders are likely to be no different," Blackbox said in its report.

On the topic of bargaining power, 44 per cent of riders surveyed said they would consider joining a union or association, if it could provide benefits, assistance and be dedicated to delivery riders. Of the remainder, 37 per cent were neutral on the matter and 19 per cent would not consider it at all.

Among those neutral or opposed to unionisation, about half said that they do not want the associated responsibility, while 30 per cent did not want to pay fees. Under a third were also unsure how a union could help them.

Delivery riders did express the desire for self-improvement, with 56 per cent keen to upskill to pursue more secure work or to improve their adaptability in the job market. Only 7 per cent indicated no interest in upskilling, while the rest were neutral.

But Blackbox's focus group findings show that riders are concerned about any potential costs that could come with compulsory upskilling. Some are also uncertain on the expected career benefits.

Riders similarly indicated a preference for control over their own level of insurance, Blackbox said. While all 3 platforms offer personal accident insurance for their riders, 74 per cent of respondents also had their own plan.

Under-represented

Blackbox's study comes as Singapore studies labour protections for platform-based gig workers, with an advisory committee kicking off deliberations last September. Feedback from the public thus far shows divided opinions on the best way forward.

Amid this debate, the delivery rider perspective has been under-represented, Blackbox said. Meanwhile, views of government officials, academics and platform companies are often more prominent.

"(Delivery) riders are often aghast at what is written and said about them, as it is at odds with their own experiences," said David Black, chief executive of Blackbox. He added that riders value the ability to make their own economic choice to enter and stay in the gig economy.

Furthermore, government communications have not been as effective as they could be in reaching delivery workers, the research company found.

Only 17 per cent of respondents were aware of any government grants and schemes available to delivery riders. The Self-Employed Person Income Relief Scheme was the only initiative with name recognition among the riders.

Just 5 per cent of respondents said that they have been approached to share opinions on future policy formulation around gig work.

"Any welfare initiative that looks to implement benefits for this group needs to be mindful of negatively impacting what they value most, namely earnings, flexibility and control they have over how they work, which can push people away from the gig economy," Black said.

He urged policymakers to involve riders in the co-creation of policies, grants and schemes targeted at them, to boost impact and take-up.

READ MORE: Platform workers caught between autonomy and security in retirement planning