The recent exit of Deliveroo from Hong Kong has reignited a critical conversation about the rights and protections of platform workers. These workers — ranging from food delivery riders and rideshare drivers to domestic cleaners and freelance creatives — are the backbone of the city’s growing gig economy. Yet, they remain vulnerable, often classified as self-employed independent contractors. This classification leaves them without the basic protections afforded to traditional employees, such as minimum wage, mandatory provident fund (MPF) contributions, and work injury compensation.
The gig economy is no longer a niche phenomenon; it is a defining feature of modern employment. However, because of the lack of a universally agreed definition of “gig worker”, the exact number of people engaged in Hong Kong’s gig economy remains unclear. For instance, 114,000 delivery couriers and ride-hailing drivers make up approximately 3 percent of local employment, while a broader estimate from the Hong Kong Law Reform Commission suggests there may be as many as 700,000 gig workers in the city. This larger figure includes roles such as private tutors, photographers, web developers, and massage therapists. A recent study by local think tank MWYO also found that 15 percent of young people (aged 18-34) held part-time or freelance jobs, highlighting the disproportionate reliance of young people on gig work. The flexibility and variety offered by platform work have driven its popularity, allowing individuals to balance multiple income streams or pursue entrepreneurial ventures.
The COVID-19 pandemic accelerated this shift, as lockdowns and social distancing measures pushed many toward gig work for survival. Delivery couriers, in particular, became essential to sustaining daily life during the pandemic, while other freelancers turned to digital platforms to make ends meet. However, even two years after the lifting of restrictions and the reopening of borders, the gig economy continues to grow, underscoring its enduring appeal. This is not just a Hong Kong-specific trend; it is a phenomenon that stretches right around the world.
Globally, gig workers face similar challenges. According to a report by the International Labour Organization, young people worldwide, including those in low- and middle-income countries, are increasingly engaged in precarious gig work with limited access to social protections and career advancement opportunities. In seven European countries surveyed, 29.1 percent of workers aged 16-24 were engaged in gig work, with 38.7 percent of young gig workers relying on it as their primary source of income. However, gig work often fails to provide adequate pay or formal recognition. For instance, full-time gig workers earned, on average, only 35.2 percent of median monthly earnings, and their pay often fell below minimum wage. These trends speak to the precarious nature of gig work, where workers often lack bargaining power and are left to navigate an unpredictable and unsustainable employment model.
In Hong Kong, the challenges are no less acute. Many gig workers, particularly those in food delivery and ride-hailing services, face erratic incomes, long working hours, and significant occupational risks, such as traffic accidents. Despite playing an integral role in the city’s economy, these workers fall outside the protections of labor laws. Unlike traditional employees, gig workers lack access to MPF contributions, sick leave, or compensation for workplace injuries. With no guaranteed minimum wage or income security, gig workers are often at the mercy of the platforms they work for, which can unilaterally alter pay structures or impose penalties. The lack of formal recognition of their employment status further exacerbates these vulnerabilities, leaving gig workers without a safety net in times of crisis.
The Hong Kong Special Administrative Region government is taking some steps to address these issues. For example, the proposed changes to labor laws will improve protections for part-time workers. Previously, employers were not required to provide benefits such as medical or annual leave to part-timers if they worked fewer than 18 hours a week for four consecutive weeks. Under the new rules, part-time workers are classified as employees in continuous employment if they work at least 68 hours a month for the same company. This change will offer better protection to those who rely on gig work as their primary source of income.
Governments around the world are beginning to address these issues, enacting legislation to protect platform workers and rethinking the traditional boundaries between employees and contractors. In the United Kingdom, the Supreme Court ruled that Uber drivers should be classified as “workers” rather than self-employed, entitling them to minimum wage and paid leave. Similarly, in California, the Assembly Bill 5 requires companies to reclassify gig workers as employees, granting them access to healthcare and unemployment insurance. Meanwhile, on the Chinese mainland, food delivery giant Meituan was ordered to provide social security benefits for its 7.45 million riders. Of these, 820,000 riders work at least 260 days a year, highlighting the full-time nature of their roles.
The Meituan ruling is particularly relevant for Hong Kong. While it does not explicitly reclassify riders as employees, it blurs the line between independent contractors and employees by mandating social security benefits — a step traditionally reserved for employees. This precedent acknowledges that many gig workers, despite being classified as independent contractors, engage in full-time work. It challenges the notion that gig work is inherently casual or supplementary, reinforcing the need for stronger protections. Hong Kong cannot afford to ignore this development on the mainland, with which the city maintains close economic ties. The Meituan case demonstrates that even in a highly competitive and fast-growing market, governments can take steps to address the vulnerabilities of gig workers.
Deliveroo’s exit from Hong Kong may be a blessing in disguise. It has created an opportunity for the city to address the systemic vulnerabilities in this growing sector. The transfer of Deliveroo riders, customers, and assets to Foodpanda is a real-world example of the challenges involved in ensuring fair treatment for gig workers during such transitions. The upcoming Legislative Council manpower panel meeting will include an agenda on “protection for digital platform workers”, and Deliveroo’s withdrawal has provided a timely backdrop for LegCo members to grasp the real issues facing the city’s gig workers.
Google Trends data shows that “Deliveroo” was the most-searched keyword under the business and finance category, reflecting significant public interest in the issue. This is a clear sign that platform workers and their challenges have captured the attention of Hong Kong society. Platform workers are not just a transient workforce; they are an integral part of Hong Kong’s economic fabric. Ensuring their well-being is not only a matter of social justice but also a prerequisite to ensure a sustainable and healthy workforce as foundation for the city’s long-term prosperity.
The author is a senior lecturer, the Hang Seng University of Hong Kong; and co-chair of the Advocacy and Policy Research Committee, the Hong Kong Institute of Human Resources Management.
The views do not necessarily reflect those of China Daily.
