Japan Gig Work Shaping And Squeezing A New Precariat Class
Date
10/8/2024 6:13:00 AM
(MENAFN- Asia Times)
On September 12, the Japanese gig work platform provider Timee held its first earnings call since being listed on the Tokyo stock exchange in July. CEO Ryo Ogawa lauded the company's growth, headlined by 72.6% and 60.6% YoY rises in sales revenue and gross profit, respectively.
Highlighting the platform's 1.2 million and growing membership, Ogawa touted future partnerships with rural regions and industry associations, ranging from restaurants to security guard providers, as a way to fundamentally solve Japan's growing labor shortage.
Investors, however, are increasingly skeptical. After rising as much as 28% after the IPO, Timee's stock price has since steadily fallen to a level nearly 40% below the IPO price.
Rather than blaming Timee's fundamentals, analysts attributed the decline to the prospects of Timee facing stiff competition in the future from larger, more well-resourced internet giants like Mercuri jumping into the line of business and rapidly poaching Timee's clientele.
In other words, the success of Timee's business model may be its very downfall.
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