The Rise of the Gig Economy: Job Creation and the Paradox of Working Relationship on the Digital Transportation Platform

Abstract

Digital economy has played a huge role worldwide, including in Indonesia. One of the fast- growing gig economies in Indonesia is that of digital transportation platforms namely Gojek and Grab. This type of gig economy offers appealing benefits, such as job opportunities for the public, simple requirements to become affiliated driver, flexible working hours, partnership-based working relationship, multiple ways to earn additional income for the drivers, and many more. However, therein lies a paradox behind these attractive offers given in the context of working relationship, where the partnership model between the drivers and the platform company over the time does not deliver a reciprocal benefit for the drivers. Examining the practice from the perspective of the partners, this research attempts to analyze the partnership model applied by the platform company. Using data gathered from in-depth interviews with representatives of the online driver community and legal scholars, this research employed notions of partnership and mystifying power asymmetry to examine the partnership practices on this digital transportation platform. Data and analysis were strengthened with literature study, sourced from journal articles, web-based materials, and official government documents. The findings revealed an unequal working relationship within the partnership, where drivers are not deeply involved in the rule-of-the-game-making process and that it lacks workers’ voices channeling their aspirations to the platform company. This is deemed a disproportionate partnership, considering the initial capital and the business risks the drivers must bear. This study proposes a recommendation to establish a set of specific governing regulations on the partnership relationship, supervision, and evaluation in practice.