Delivery Hero, a food delivery company based in Berlin, Germany, is now offering its services in Japan and other parts of Asia under the brand name Food Panda.
Discussion on Gig Economy Workers
The company's CEO, Niklas Östberg, recently pointed out that the debate over the status of gig economy workers lacks the perspective of the riders (delivery people).
There is a growing debate in various markets, especially in Europe, about the employment status of gig economy workers.
In Spain and the U.K., court rulings ordering delivery companies to offer benefits and traditional forms of employment have raised questions about the sustainability of the business model.
The current debate lacks an approach from the riders' perspective. We need to give riders a free choice," said CEO Estberg.
According to Estberg, there is a model in Norway that allows riders to negotiate employment and benefits contracts with companies or choose to remain freelance.
As a result, riders who want a flexible work style often choose the freelance model, she said.
There are a lot of things we can do today, but there are also a lot of things we cannot do legally. There are many things we can do today, but there are also many things we can't do legally: preserve funds for pensions and social security, but we will need the help of legislators to make that happen," Estberg said.
Delivery Hero Sales
Delivery Hero posted sales of 1.4 billion euros in the first three months of the year and expects full-year sales in 2021 to more than double from last year to more than 6.1 billion euros.
Demand for food delivery skyrocketed after the pandemic, and the company's results suggest that this demand will continue.
In addition to its core business of food delivery, Delivery Hero is also expanding its business in quick commerce (Q-commerce), the next generation of e-commerce.
Even as vaccination progresses and daily life returns, Estberg says the demand for delivery, which surged during the pandemic, will not decrease much.
Expansion in Asia
The company has been investing heavily in recent years, particularly in Japan and South Korea, where it launched services last year and completed a $4 billion acquisition of Korean company Woowa, the parent company of Foodcat, in March.
We will provide convenient delivery services to everyone from Laos to Sweden, delivering any item, including fresh food," Estberg said.
He said that since acquiring Ouwa, the company is not looking to make further large acquisitions, but is open to acquiring smaller companies with specific skills.
There are companies in the world that specialize in certain areas and have good solutions," he said. If we can combine our customer base and resources with their skills, we may be able to extend that technology," Estberg said.
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