ASEAN's Gig Economy: A Lifeline for Youth and Informal Workers

The gig economy in the Association of Southeast Asian Nations (ASEAN) is more than just about ride-hailing or food delivery drivers. It has become a structural part of the economy, supporting millions of workers and helping cities function more efficiently. In many markets, informal or platform-based work is not just a side hustle but a main source of income. Against the backdrop of one of the highest shares of informal employment in the Asia-Pacific region, the gig economy is evolving beyond an investment story about which platform wins. It is a broader long-term theme tied to urbanization, improving digital infrastructure, and the gradual formalization of these platforms in the region. ASEAN has a unique demographic mix, with nearly half of its population under 30 in 2024, creating a large pool of digitally savvy workers. In key markets such as Vietnam, the Philippines, and Indonesia, young people make up a meaningful share of the population, and many have grown up using smartphones as their main gateway to work, payments, and services. This has made younger workers more open to gig work, more comfortable managing multiple income streams, and more reliant on digital platforms to find jobs. With internet penetration across Southeast Asia already above 80%, the infrastructure to support this shift is largely in place. Formal job creation has not kept pace with ASEAN's large and growing workforce. This has made gig work less a matter of choice and more a necessity for many workers. According to the International Labour Organization, more than 16 percent of youth across Southeast Asia were not in education, employment, or training in 2024. Gig platforms help fill this gap by offering a flexible and accessible way to earn income without requiring formal qualifications, prior work experience, or even a bank account. In countries such as Cambodia, Indonesia, and Thailand, informal work accounts for more than 80 percent of total employment. Gig platforms are increasingly acting as organizers of informal work, going beyond just job-matching apps. Urbanization is also changing where people live and how they earn. More than half of ASEAN’s population lived in cities in 2024, and as more young workers move into urban centers, they enter places where platform-based work is both easier to access and more in demand. In places like Jakarta and Manila, severe traffic congestion has made fast and flexible delivery services essential. This has helped platforms such as GoTo play a bigger role in solving last-mile logistics challenges that existing infrastructure could not fully address. The digital economy supporting gig work has also expanded rapidly. Across Southeast Asia, digital economy Gross Merchandise Value (GMV) exceeded $300 billion in 2025, a sharp increase from about $40 billion a decade earlier. This growth rate, 17% annually, outpaces that of the United States, Europe, and China. This reflects not just stronger online consumption but also the buildout of the digital infrastructure that gig platforms rely on, including payment systems, logistics networks, cloud services, and mobile connectivity. The gig economy plays a crucial role in filling gaps in ASEAN's logistics infrastructure, such as uneven warehousing networks, unreliable last-mile delivery, and traditional courier services not built for the speed and flexibility required by e-commerce. This suggests investment opportunities not only in platform companies but also in supporting ecosystems like fulfillment centers, cold chain networks, and cross-border logistics hubs.