As part of its $1.1 billion initial public offering, Indonesia’s GoTo will be giving away shares to its 600,000 drivers, becoming the first major sharing-economy giant in SE Asia to include part-time gig workers in its IPO shares.
So what?
Mobile app-based gig-economy companies have grown and profited massively over the years, with the pandemic further contributing to their recent growth. This growth has also shed light on the difficult working conditions of long hours and low wages faced by contract workers – primarily drivers – who form the bulk of these companies.
The provision of IPO shares serves as an acknowledgment of the role that gig workers play in the success of these companies. Recent years have also seen greater public and regulatory interest and concern for gig workers. This announcement is a sign of how businesses might respond (or might be expected to respond) to their full-time as well as contracted employees, especially when it comes to sharing benefits.
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