Gig economy - The good times are over
The dream of making thousands of ringgit a month as a gig driver or food delivery rider is over.
Higher competition, the end of Covid-19 pandemic movement restrictions as well as changes in fee structures mean that gig drivers and riders are now earning less than what they used to make during the pandemic.
“The time for that is over, especially for delivery riders who used to make thousands of ringgit a month just because eating out was not allowed then during the pandemic (lockdowns),” said sociologist Prof Chin Yee Whah of Universiti Sains Malaysia.
“Taking up gigs is worse than being in a middle-income trap because as more people join, the income for a driver or delivery rider becomes much lower,” he added.
Prof Chin said it was understandable for youth today to be caught up in materialism and the desire for instant gratification, which has resulted in them – especially the recent post-SPM cohort – leaning towards gig jobs that offered what would seem like a handsome income in the beginning.
In May, a survey by a private university reportedly found that 49% of SPM school leavers did not plan on furthering their studies, and 26% of them said they planned to be ehailing drivers or delivery riders.
“It won’t work. Even if you spend over 10 hours a day on that kind of work and earn as much as RM4,000 a month, when you fall in love and get married and try to raise a family, you will find yourself stuck in a circle with no chance for growth,” he warned.
Prof Chin said it was now time for teachers and community leaders to mentor youths on the need to seek out careers and skills, and to patiently enhance these skills to get a proud footing on life.
He urged youth who were not academically inclined to take up skills training.
“If you are a plumber, electrician or air-conditioning repairman, you earn RM50 upon arrival at any home and after you do your work, you are making upwards of RM150.
“As you keep up with technology, you earn more and you can someday own your own company.
“If you are a driver or delivery rider, this would be impossible,” he added.
Civil servant Hisyam Yusuf, 35, who works part-time as an ehailing driver, admitted that it has been difficult to compete with other drivers during peak hours.
“So many drivers would be out on the streets to reap the peak-hour rates.
“Add traffic congestion and passengers who cancel their requests while we are on our way there, and it becomes difficult to earn a stable income from ehailing,” he said, urging youths not to opt for low-skilled jobs in the gig economy in search of quick money.
“This will hamper your long-term career prospects,” he said.
Another gig driver, Moses Chin, 29, said when ehailing started several years ago, the income was lucrative, even for part-timers.
“When I started five years ago, I could earn about RM1,000 per week if I drove consistently during weekends and nights,” he said.
However, he said the different pricing structures used by ride-sharing companies, including rates during rush hour and weekends, currently do not favour drivers.
“Sometimes, when I wait in Komtar during peak hours, I can only get one or two trips per hour because there are so many other drivers available in the same area,” said Chin, who drives part-time at night and during weekends to supplement his income as a technician.
“For school leavers who want to take this up full-time, think twice. You’ll regret your decision,” said Chin, urging them to instead find high-value and high-skilled jobs.
Newly married Iqbal Syamil Hamdan, 24, became an ehailing driver after he was retrenched last year.
“I was clueless when I got retrenched last year. Looking for a new job is so difficult.
“I knew I had to do something, and working as an ehailing driver gave me the best option to continue earning an income.
“But I know I can’t do this forever,” said Iqbal, who now earns about RM1,500 per month as a full-time ehailing driver after deducting all expenses.
https://www.thestar.com.my/news/nation/2023...-times-are-over
The dream of making thousands of ringgit a month as a gig driver or food delivery rider is over.
Higher competition, the end of Covid-19 pandemic movement restrictions as well as changes in fee structures mean that gig drivers and riders are now earning less than what they used to make during the pandemic.
“The time for that is over, especially for delivery riders who used to make thousands of ringgit a month just because eating out was not allowed then during the pandemic (lockdowns),” said sociologist Prof Chin Yee Whah of Universiti Sains Malaysia.
“Taking up gigs is worse than being in a middle-income trap because as more people join, the income for a driver or delivery rider becomes much lower,” he added.
Prof Chin said it was understandable for youth today to be caught up in materialism and the desire for instant gratification, which has resulted in them – especially the recent post-SPM cohort – leaning towards gig jobs that offered what would seem like a handsome income in the beginning.
In May, a survey by a private university reportedly found that 49% of SPM school leavers did not plan on furthering their studies, and 26% of them said they planned to be ehailing drivers or delivery riders.
“It won’t work. Even if you spend over 10 hours a day on that kind of work and earn as much as RM4,000 a month, when you fall in love and get married and try to raise a family, you will find yourself stuck in a circle with no chance for growth,” he warned.
Prof Chin said it was now time for teachers and community leaders to mentor youths on the need to seek out careers and skills, and to patiently enhance these skills to get a proud footing on life.
He urged youth who were not academically inclined to take up skills training.
“If you are a plumber, electrician or air-conditioning repairman, you earn RM50 upon arrival at any home and after you do your work, you are making upwards of RM150.
“As you keep up with technology, you earn more and you can someday own your own company.
“If you are a driver or delivery rider, this would be impossible,” he added.
Civil servant Hisyam Yusuf, 35, who works part-time as an ehailing driver, admitted that it has been difficult to compete with other drivers during peak hours.
“So many drivers would be out on the streets to reap the peak-hour rates.
“Add traffic congestion and passengers who cancel their requests while we are on our way there, and it becomes difficult to earn a stable income from ehailing,” he said, urging youths not to opt for low-skilled jobs in the gig economy in search of quick money.
“This will hamper your long-term career prospects,” he said.
Another gig driver, Moses Chin, 29, said when ehailing started several years ago, the income was lucrative, even for part-timers.
“When I started five years ago, I could earn about RM1,000 per week if I drove consistently during weekends and nights,” he said.
However, he said the different pricing structures used by ride-sharing companies, including rates during rush hour and weekends, currently do not favour drivers.
“Sometimes, when I wait in Komtar during peak hours, I can only get one or two trips per hour because there are so many other drivers available in the same area,” said Chin, who drives part-time at night and during weekends to supplement his income as a technician.
“For school leavers who want to take this up full-time, think twice. You’ll regret your decision,” said Chin, urging them to instead find high-value and high-skilled jobs.
Newly married Iqbal Syamil Hamdan, 24, became an ehailing driver after he was retrenched last year.
“I was clueless when I got retrenched last year. Looking for a new job is so difficult.
“I knew I had to do something, and working as an ehailing driver gave me the best option to continue earning an income.
“But I know I can’t do this forever,” said Iqbal, who now earns about RM1,500 per month as a full-time ehailing driver after deducting all expenses.
https://www.thestar.com.my/news/nation/2023...-times-are-over
