Technology car drivers 'fiercely compete for jobs due to rapid increase in workforce'

In Ho Chi Minh City, unemployed workers flock to become technology-based motorbike taxi drivers, causing the number of drivers to increase sharply and competition to become fierce. Many people work hard without taking a break to earn a living.

The content was said by Mr. Pham Mi Sen, a Grab driver and Vice President of the Binh Tan District Technology Motorbike Taxi Union, at the introduction of the report assessing the working conditions of workers of 9 digital platforms conducted by Fairwork (Fair Work Network) Vietnam on the afternoon of October 26.

According to Mr. Sen, factories are reducing labor, workers are losing their jobs and turning to technology-based motorbike taxis, so the number of drivers is increasing rapidly. "So many that companies are delaying accepting new drivers," Mr. Sen said. Many people have registered and waited two months without opening an active account. Because the labor supply is so abundant, companies have tightened regulations, making it easy for drivers to have their accounts locked. Drivers who are complained about by customers twice will be temporarily suspended, and three times will be permanently suspended.

Grab drivers learn skills before driving. Photo: Quynh Tran

"When a person becomes a driver, we lose customers and face competition for rides," said Mr. Sen. According to him, to increase income by 8%, drivers' working hours must increase by 50%. Many people work day and night, not daring to rest, eating and sleeping in the car to ensure a living income.

A previous survey on social security issues of Grab technology drivers conducted by the Vietnam General Confederation of Labor, the Center for Health Counseling and Community Development, and Oxfam, showed that the average monthly income of motorbike drivers was 7 million VND. About 2/3 of the surveyed drivers were married, and 60% of them were supporting two or more people.

The income is not high but the drivers have to work very hard, 95% have to work from 6-12 hours a day, no days off even on holidays, under pressure to deliver early, on time. Most have to work in difficult conditions: bad weather, roads, collisions, traffic accidents; under pressure from customers; lost, damaged goods, even sexual harassment and many other dangerous behaviors.

The vice president of the technology motorbike taxi union in Binh Tan district also pointed out a series of shortcomings that technology motorbike drivers are facing, especially when they are classified as partners.

"The drivers will have to bear any losses," Mr. Sen said. For example, the tax rate, because they are considered partners, equal to the company, the drivers' income is taxed like a business. Meanwhile, the company completely controls the drivers through a code of conduct. The rules are changed by the company at any time without any input from the drivers.

According to Mr. Sen, in theory, drivers can take the initiative in their working hours, but in reality, if they just turn off the app for 1-2 days, the next day when they open it again, they won't be able to "explode" the trip, or it will take a long time for the system to "release" the trip.

"Limiting the driver from exploding if he is lazy is a sanction that forces us to work continuously," said Mr. Sen. Currently, for each trip, the driver must give the company a 20% commission, minus taxes according to regulations.

Dr. Do Hai Ha, a member of the research team of Fairwork Vietnam, said that the number of workers working with platforms is increasing rapidly, with an estimated 600,000 drivers joining the companies in the 2014-2019 period alone. However, the relationship between drivers and these companies is still unclear, making the welfare rights of workers participating in this field not guaranteed.

Fairwork assesses the fair working conditions of ride-hailing companies in Vietnam based on five criteria: income, assessment, management, contract terms, and representative voice. The results show that no platform provides evidence that all of its drivers earn more than the regional minimum wage (currently VND4.68 million per month in Ho Chi Minh City).

Workers have to spend money to buy work equipment such as cars, phones, and health insurance. The job has many potential risks but very few companies buy accident insurance for drivers.

The survey also found that although drivers are considered partners, platforms retain the right to create and modify the terms of their partnership. Contracts allow platforms to suspend, deny, or terminate drivers’ benefits at any time. Contracts explicitly protect platforms from liability for negligence or from liability for unreasonable working conditions.

Le Tuyet

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