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Gleaming insights on delivery partners through administrative data, Ministry of Manpower, Singapore

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UNECE_Insights on Delvery Partners_updated.pdf (application/pdf, 445.56 KB)

Delivery services have been a pivotal in all sectors as people seek convenience and access to global products. It has transformed the way business works, especially in the food & beverage and retail sector. The first food delivery service is believed to have taken place in Korea for cold noodles in 1768 (Seouland, 2016). With technological advancements like the World Wide Web (WWW) and Global Positioning System (GPS), delivery work can now be calibrated quickly and efficiently. Consumer demand is also spurred by easy access to personal computers, mobile phones and internet access. In today’s fast paced environment, delivery services provide consumers with convenience as the items or meals can be delivered to their doorstep by placing a simple order on their smartphone or computer. This would eliminate the need to travel to a physical location to queue and acquire the desired service or products. Delivery services also solve the accessibility issue for people living in areas with limited transport options or persons with mobility issues or disabilities. People prioritize work-life balance more and are willing to spend on services that will ease their life and reduce stress. COVID-19 has further accelerated the growth of the delivery business as there is a need to ensure access to goods and services while considering public health and safety. The global food delivery market has tripled since 2017 to a market worth of more than $150 billion (Kabir Ahuja, 2021). To prevent further spread of the virus, safety measures such as lockdowns, social distancing and restriction on business operations were implemented by governments around the world. As such, individuals can only rely on delivery services for their meals, groceries, and other essentials. Several brick-and-mortar businesses such as restaurants, supermarkets and retail stores were forced to limit their operations. In order to keep their operations afloat, businesses transformed their operations to be online and delivery focus to continue serving their customers. The increase in demand for delivery services has created a vacuum for delivery workers. This was almost filled by workers whose job were disrupted due to COVID-19. This includes workers working in sectors such as retail, aviation, and arts. The pandemic has led to a fundamental shift in consumer behavior as people are more accustomed to the convenience of delivery services and businesses have invested in assets and training to provide online services. This behavior shift is likely to persist, driving continual demand for delivery services in the long run. This report looks at delivery partners who in Singapore’s context are own account workers which partners with companies (e.g Grab, Deliveroo, FoodPanda) to use their platform to get jobs. Some equivalent global platforms are Uber Eats, DoorDash and Postmates.