Uber Eats Japanese Delivery Staff Value Their Freedom above All
The company allows its growing workforce of 130,000 to be unencumbered by rules, a rarity in “Japan, Inc.”
What’s new: In Japanese there is a rather unfortunate term called karoshi (過労死), which means “death from overwork.” It marks the literal ending for extreme cases of people that become too devoted to their occupation. While, of course, most workers in Japan are able to find at least a semblance of a more healthy work/life balance, the stereotypical worker tends to be either a factory worker or a salariman (サラリーマン), an office worker who toils at the office well into the evening and rarely gets home to eat dinner with his family. For years, however, there has been a subset of workers that disdain such devotion to one’s jobs. They are called freeters (フリーター). Most work just enough to get by and, in general, tend to be young. Lately one well-known global start-up has found success in Japan by growing their pool of freeters to now more than 130,000 laborers. They work for Uber Eats as delivery personnel.
Why do they do it? In Japan, Inc., where one’s very existence is often defined by their association with their employer—at least until retirement at around age 60—freeters are typically looked upon with disdain. Toyo Keizai Online, a popular business publication in Japan, recently interviewed 25 Uber Eats deliverymen to ask why they do what they do.
For most it all boils down to a desire for freedom and independence.
Uber Eats has few rules, and that’s just what their legion of delivery workers like, especially in a society which often seems to have an over-abundance of rigid rules and regulations—including many that are unspoken but have been ingrained in Japanese society for centuries.
What they’re saying: It’s not about the money. "To be honest, I don't care about the remuneration system at all," says Mr. H, who is in his 40s and makes deliveries on a motorcycle.
Mr. H (full name not identified to maintain privacy) added, “I don't have to go to work, and I can start work as soon as I wake up.”
Mr. K, who is in his early 20s, also earns a living only by making deliveries for Uber Eats. He explained, "I can go out and have fun whenever I want.” He cautioned, however, “The freedom to play is only possible if you take your job seriously.” Mr. K commutes from the outskirts of Tokyo to work approximately 9 hours a day in central Tokyo, where there are many orders.
The freedom of the work style also seems to appeal to him. Mr. Z, who is in his 30s, said, “I can listen to music and tweet on my phone while I wait. Earlier I was playing Nintendo DS."
Mr. C, also his 30s, mentioned, "I like the place where I can work as I see fit. I don't want to work for an organization. Even if I don't get any orders, I can listen to the radio.”
Mr. V told us how his job differs from other delivery jobs. In the case of pizza delivery, work is limited to the store's business hours. Shifts are also subject to the availability of other workers, so the deliverymen are not free to work as they please. He said, “It is difficult to find a job where I can work completely at my own convenience. Uber's advantage is that there are fewer rules. It suits me just fine.”
Mr. I, who is in his 40s and specializes in evening and night time deliveries, explained honestly, “I can't get up in the morning...Uber allows me to cancel my order midway through the day, so I'm able to work without any restrictions. I'm satisfied, or maybe I've given up. I'm half a NEET.” The term NEET, meaning “Not in Employment, Education or Training,” was born out of British labor policy in the 1980s to denote people between the ages of 16–18 who are “not in employment, education, or training.” It was adopted in Japan from 2004, and its corollary “half-NEET” symbolizes the essence of Japan’s freeter lifestyle.
Tricks of the Trade: The savviest Uber Eats deliverymen tend to be quite particular about where they work.
Geography plays an important role. Mr. H always plans his routes with an awareness of where to pick up and where to deliver. He says it is important to know the geography well and continue to deliver in the areas where he is knows the area.
Mr. K selects orders so that they do not fall outside of areas where a "boost" is applied, which increases the basic rate by a certain factor (1.1x, 1.4x, etc.) at times and places where there are many orders.
In central Tokyo it is usually more efficient to make deliveries with a bicycle. In highly congested areas such as the underground shopping mall in Yaesu, near Tokyo Station, the delivery staff must be aware of where to park their bicycle to get to the store in the fastest possible time. Mr. K reasoned, “Even if the store or delivery location is close by, if there are many hills, the time lost will be significant and the physical effort will be hard to bear. Therefore, I avoid areas with many hills, such as Roppongi and Bunkyo Ward.”
As Uber Eats has not revealed its dispatch algorithm or a clear compensation structure, it seems that delivery staff have developed their own know-how. Mr. M, a former taxi driver, divulged, “I don't go to the bay area, such as Minato and Koto Wards, because it takes time to get in and out of the sky-scrapers, making deliveries less efficient.”
Weather conditions are an important factor, too. Some said that they target rainy, hot, or cold days when other deliverymen do not want to make deliveries, because the unit price is higher.
There are other ways to boost one’s unit price. If Mr. H refuses an order, he wastes time waiting for the next one. “Some orders are obviously not worth the money," he says, "but if you build up the number of orders, you can accomplish your quest, and the money piles up.” Quests refer to the additional rewards that come from making a certain number of deliveries, for example, how many per week or during busy times of the day.
How much do they make? Income varies depending upon whether deliveries are made on a full- or part-time basis.
Mr. H's average daily income is about 20,000 yen (approximately US $150).
Mr. M, the former cab driver who is in his 50s and makes deliveries by minivan, earns an average of 17,000 yen ($127) per day. He sets his own targets and finishes work when he reaches them. On average, he works 10 hours a day or up to 12 hours when he is busy.
On the day of the interview Mr. T, who is in his 40s and is self-employed, had just started making deliveries the week before, because he had some free time in the evenings after finishing his main job. Mr. T’s goal is to earn just a little extra cash by delivering from Uber Eats. He articulated, “Even if it's only 5,000 yen ($37) a day, if I accumulate it, it will become 100,000 yen ($750) or maybe even 150,000 yen ($1,120) a month. That's a lot of money for a side job."
What’s next: In November 2022, the Tokyo Labor Relations Commission ruled that Uber Eats delivery personnel are, in fact, real workers and ordered the company to accept the collective bargaining agreement of the Uber Eats Union, a union of delivery workers. However, the company filed for a re-examination in December, so the future remains uncertain. Even if their official status is in legal limbo, it is likely that the majority of Uber Eats’ 130,000+ deliverymen are just fine with the status quo, which provides freedom, some extra cash, and keeps them free from virtually any obligations.
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Links to Japanese Sources: https://toyokeizai.net/articles/-/642452?display=b
Some of my friends in Chennai, India are exactly doing the same using apps like Zomato, Swiggy, Dunzo and Uber Eats for freedom and extra cash.