Paper Type
Short
Paper Number
PACIS2025-1172
Description
This study explores the unintended cross-platform spillover effects of governmental actions to protect platform workers. We analyze how implementing minimum hourly wages, shifting from per-task pay to hourly wages, for app-based food delivery workers influences ride-sharing usage. As location-based gig work becomes increasingly interconnected, regulatory interventions may disrupt labor distribution across sectors, impacting the matching of clients and labor in adjacent sectors. We employ a counterfactual estimator approach to provide empirical evidence that establishing hourly pay standards for app-based food delivery can reduce ride-sharing driver availability, resulting in higher fares and lower utilization. This study contributes to research on platform governance and labor market dynamics in multi-sided platforms. This study provides significant policy implications for municipal lawmakers and business implications for on-location platforms facing pressure to improve working conditions.
Recommended Citation
Choi, Yunmin; Min, Kyeongsu; and Baek, Jiye, "Does Helping Hurt? How Food Delivery Wage Protections Disrupt Ride-sharing" (2025). PACIS 2025 Proceedings. 2.
https://aisel.aisnet.org/pacis2025/dig_plat/di/2
Does Helping Hurt? How Food Delivery Wage Protections Disrupt Ride-sharing
This study explores the unintended cross-platform spillover effects of governmental actions to protect platform workers. We analyze how implementing minimum hourly wages, shifting from per-task pay to hourly wages, for app-based food delivery workers influences ride-sharing usage. As location-based gig work becomes increasingly interconnected, regulatory interventions may disrupt labor distribution across sectors, impacting the matching of clients and labor in adjacent sectors. We employ a counterfactual estimator approach to provide empirical evidence that establishing hourly pay standards for app-based food delivery can reduce ride-sharing driver availability, resulting in higher fares and lower utilization. This study contributes to research on platform governance and labor market dynamics in multi-sided platforms. This study provides significant policy implications for municipal lawmakers and business implications for on-location platforms facing pressure to improve working conditions.
Comments
Platform