TAIPEI – Delivery workers and unions in Taiwan have voiced strong opposition to Uber Eats’ proposed acquisition of foodpanda, with concerns over market monopoly and the protection of workers’ rights. Over 200 local delivery drivers gathered in a demonstration outside the Fair Trade Commission (FTC) on Wednesday, urging regulators to scrutinize the deal thoroughly.
Union’s Stand: Opposition to Potential Monopoly
The National Delivery Industrial Union led the protest, arguing that if Uber Eats successfully acquires foodpanda, the delivery platform would control 80-90% of Taiwan’s food delivery market. According to union representatives, this could lead to a monopoly, granting Uber Eats disproportionate power over pricing and working conditions for Taiwan’s delivery workers.
Union members carried signs and raised their voices in front of the Fair Trade Commission, calling for a rigorous and transparent review of the acquisition. They emphasized that they would not accept any decision unless it ensured fair competition within the industry.
Concerns Over Data Privacy and Worker Protections
The union further raised alarm over the personal and financial data Uber Eats would obtain through the deal. They highlighted reports that, if the acquisition goes ahead, the company would gain access to GPS location, spending habits, and financial data of over 15 million consumers in Taiwan. They argued that this data concentration poses significant privacy risks for the public.
In addition, the union noted that Uber Eats would control more than 160,000 delivery drivers and 100,000 partner restaurants across Taiwan if the deal proceeds. The union claims this concentration of power would allow Uber Eats to impose unfair conditions on both the workers and the sellers.
Calls for Policy Changes to Protect Delivery Workers
The protest also highlighted the lack of protections for delivery drivers. Despite the Ministry of Labor declaring that the relationship between Uber Eats and its delivery partners is one of employer and employee, the union claims the company has failed to provide workers with basic labor rights. Delivery drivers have reported that wages have been slashed, and it has become increasingly difficult to earn bonuses or other financial incentives.
The union’s leaders are calling on the government to implement official policies regulating the delivery industry and ensuring that delivery drivers receive fair wages and job security.
Uber Eats Responds: The Benefits of the Acquisition
In response to the protests, Uber Eats Taiwan General Manager Chai Lee (李佳穎) defended the acquisition, stating that the deal would be beneficial to consumers, retail partners, and delivery drivers. Lee emphasized that the acquisition would allow Uber Eats to improve the efficiency and quality of its services.
Lee also assured that Uber Eats would engage in discussions with the delivery service unions and work closely with the Fair Trade Commission to address the concerns raised during the protests.
Potential Impact of the Acquisition on Taiwan’s Delivery Market
| Aspect | Current Status | Post-Acquisition Impact |
|---|---|---|
| Market Share | Uber Eats: ~50%, foodpanda: ~30% | Uber Eats will dominate 80-90% of market |
| Delivery Drivers | 160,000 drivers in Taiwan | Uber Eats will control drivers’ wages, bonuses, and working conditions |
| Consumer Data | Minimal data sharing | Access to personal data of 15 million consumers |
| Regulation of Workers | Limited protections | Increased call for policy changes to protect rights |
Frequently Asked Questions (FAQs)
Q: Why are delivery drivers protesting Uber Eats’ acquisition of foodpanda?
A: The protest is centered around concerns of a potential monopoly if Uber Eats acquires foodpanda. The union believes this would give Uber Eats excessive control over the market, leading to worsened working conditions and reduced protections for delivery drivers.
Q: What are the privacy concerns regarding the acquisition?
A: The union raised concerns that Uber Eats would gain access to sensitive consumer data, including spending habits, GPS locations, and financial information of around 15 million people in Taiwan, leading to privacy risks.
Q: How does the union view the current relationship between Uber Eats and its delivery partners?
A: Despite government recognition of an employer-employee relationship, the union claims that Uber Eats has not provided adequate labor protections for drivers, citing issues such as reduced wages and difficulty obtaining bonuses.
Q: What is Uber Eats’ stance on the acquisition?
A: Uber Eats argues that the acquisition will benefit consumers, retail partners, and delivery drivers, and they are committed to engaging with unions and regulators to address concerns.
Q: What is the next step in the acquisition process?
A: The Fair Trade Commission is currently reviewing the acquisition, and it will make a final decision based on the impact on market competition, consumer protection, and workers’ rights.
