An article written by Uber Eats Taiwan general manager Chai Lee (李佳穎) published in the Liberty Times (sister paper of the Taipei Times) on Tuesday said that Uber Eats promises to engage in negotiations to create a “win-win” situation. The article asserted that Uber Eats’ acquisition of Foodpanda would bring about better results for Taiwan.
The National Delivery Industrial Union (NDIU), a trade union for food couriers in Taiwan, would like to express its doubts about and dissatisfaction with Lee’s article — if Uber Eats truly has a clear plan, why has this so-called plan not been presented at relevant conferences?
Uber Eats’ past behavior in Taiwan and international markets has deprived the rights and interests of third parties. The situation would only worsen after this merger and could lead to the complete stifling of fair market competition.
Uber Eats has long been known to unilaterally reduce compensation, modify its algorithms and force employees to sign unfair contracts, thereby exploiting the working conditions of frontline couriers. Its practices have led to sharp declines in income, forcing couriers to face increased financial instability.
Uber Eats announced that it would raise courier wages following this merger, but in reality, this “raise” would likely be achieved through short-term promotions resulting in increased order volume. The company’s monopolistic status would ultimately lead to a decrease in employee compensation. Thus, this promise to increase wages is nothing more than an attempt to gloss over its monopolistic behavior.
In the past, Uber Eats has repeatedly used subsidies and hostile price competition to force local small and medium-sized competitors out of the market, leading to a high market concentration in the delivery industry. This upcoming merger would further weaken market competition, forming both a market monopoly and data monopoly.
Consumers would no longer have the opportunity to enjoy the benefits of competitive pricing or a variety of choices, directly leading to data hegemony — Uber Eats would have greater control over methods of monitoring credit card information, purchasing habits, order locations and personal data.
The high commission fees Uber Eats imposes on merchants have already become a severe burden for small and medium-sized businesses. As a result, small businesses find themselves in a difficult position, with no choice but to pass these additional costs onto their customers.
While Uber Eats claims that merchants would benefit from this merger, post-merger data from markets in other countries indicates that the exploitation of merchants and other independent operators only continues, as they are forced to deal with even higher commission fees. Only a few large brands have the right to negotiate commission rates and maintain normal profits — the space for small and medium-sized businesses in Taiwan would only continue to be squeezed until it is nonexistent.
Uber Eats causes close to 1,500 consumer disputes annually over issues such as food safety, order delays, refunds and fraud. This reflects the company’s overall disregard for consumer needs and its lack of any genuine effort to solve these problems. Following the merger, the number of disputes is expected to rise. Furthermore, Uber Eats would continue to impose various fees under a number of new baseless pretexts, leaving consumers’ rights and interests even more vulnerable than before.
Uber Eats has consistently failed to sincerely address public concerns, repeatedly responding with repetitive statements and empty promises. Past experience illustrates that Uber Eats’ previous commitments were all merely made to gain approval and rarely actually implemented.
During a meeting with unions and government representatives, Uber Eats’ senior executives for the Asia-Pacific region said that the company would refuse to make any adjustments to their practices unless someone is able to name the specific Taiwanese law being contravened.
Two years ago, leaked messages between foreign Uber executives revealed that they were aware of the company’s global law-breaking, with one even saying: “We’re just fucking illegal.”
For the above reasons — and the lack of consensus on the seven major concerns raised by the labor side on May 29 — the NDIU urges the Fair Trade Commission to thoroughly review and reject this merger proposal to prevent market monopolization from harming the interests of couriers, merchants and consumers in Taiwan, which would lead to a catastrophic outcome.
We will continue to collaborate with unions, business representatives and stakeholders to safeguard Taiwan’s market equality and protect the rights and interests of frontline workers, partnering businesses and consumers.
Chen Yu-an is chairman of the National Delivery Industrial Union.
Translated by Kyra Gustavsen
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