Timee, Japan’s leading gig work platform, held its first earnings call since its much-anticipated listing on the Tokyo Stock Exchange in July. CEO Ryo Ogawa proudly announced robust financial performance, underlined by a 72.6% increase in sales revenue and a 60.6% rise in gross profit year-over-year (YoY). With over 1.2 million users, Timee has positioned itself as a crucial player in Japan’s evolving labor market, offering on-demand work opportunities for workers in need of immediate income. However, despite these figures and Ogawa’s optimistic outlook, investors and analysts remain cautious about Timee’s long-term viability.
Timee’s IPO initially excited the market, with its stock price surging by as much as 28%. However, the euphoria quickly faded, and its stock has steadily declined to nearly 40% below its IPO price. Investor sentiment shifted, not due to Timee’s financial fundamentals, but rather concerns over the company’s ability to defend its market position against more powerful competitors. Internet giants like Mercuri, with greater resources and infrastructure, are rumored to be eyeing the gig economy space. This has led analysts to predict that Timee may struggle to maintain its user base as larger companies enter the market.
“There is always a risk that a smaller player like Timee will get squeezed out when larger tech giants decide to enter the same industry,” explained one analyst. “While Timee has been successful thus far, they might not be able to fend off competition with their current resources.”
Ogawa, however, remains optimistic, and his vision extends beyond mere financial metrics. He described Timee as a potential solution to Japan’s growing labor shortage, an issue compounded by the country’s rapidly aging population and declining birthrate. Japan’s total workforce is shrinking, and businesses across the country, from urban corporate offices to rural farming communities, are facing critical shortages of workers. Timee hopes to address this gap by forming partnerships with rural regions and various industries, such as restaurants and security services, to provide flexible labor solutions.
“Our platform is well-positioned to address labor shortages in multiple sectors. From restaurants in Tokyo to security providers in smaller towns, Timee has the potential to mobilize workers wherever they are needed,” Ogawa said during the earnings call.
The potential for partnerships with local governments and industry associations could enable Timee to tap into new markets, particularly in rural areas where labor shortages are often most acute. Japan’s government has also expressed interest in exploring innovative solutions to the labor shortage problem, providing Timee with a unique opportunity to expand its services nationwide.
Timee’s emergence and growth highlight broader shifts in Japan’s labor market. Since the 1980s, irregular employment—including part-time, contract, and freelance work—has steadily grown. In 1985, irregular employment represented less than 15% of the Japanese workforce. By 2023, that figure had soared to 37%, or more than 21 million people.
An estimated 7 to 10 million of these workers are classified as gig workers, reliant on temporary and short-term gigs for their livelihood rather than steady employment. Timee’s user base, primarily drawn from this population, often consists of individuals in precarious financial situations, unable to secure regular, full-time jobs.
What sets Timee apart is its streamlined system: no interviews, no background checks, and immediate payment upon the completion of work. This immediacy has proven attractive to workers in need of fast income, especially those who may not be available for long-term, consistent employment. However, it also means that the quality of jobs available on the platform tends to be low. Workers are typically assigned to repetitive, low-paying, and menial tasks that offer little room for skill development or career advancement.
As Japan’s gig economy grows, it has given rise to a new social class: the “precariats.” These individuals are permanently caught in low-quality gig jobs, unable to secure stable, better-paying positions in the traditional workforce. Data from Timee’s user base reflects this stark reality. Over 60% of the platform’s registered users are over the age of 30, and nearly 88% earn less than 5 million Japanese yen (roughly $33,700) per year. For over half of its users, gig work through Timee has become a core part of their livelihood, with many relying on the platform at least eight times a month for consistent work.
Rather than a platform for students seeking part-time work or individuals supplementing their income, Timee has increasingly become a lifeline for aging workers who have, for various reasons, fallen out of the traditional Japanese employment system. Many of these workers struggle to return to full-time employment in corporate Japan, where ageism and rigid hiring practices are prevalent.
“The platform is serving a demographic that wasn’t originally its primary target,” says one labor market analyst. “Many older workers who lost their jobs during the last few economic downturns are now using Timee not as a supplement, but as their main source of income.”
The growth of the gig economy in Japan runs counter to the popular belief that Japan’s labor market is defined by its rigid structure. Traditionally, the concept of lifelong employment, particularly in large corporations, has been a hallmark of Japan’s labor market. This system, often referred to as the “one-company salaryman” culture, discourages job-hopping and promotes long-term loyalty between employees and employers.
However, the emergence of platforms like Timee reveals a new reality for Japan’s workforce. Full-time, formal employment is becoming less accessible, especially for older workers and those without advanced qualifications. As the traditional corporate model of lifelong employment becomes increasingly unattainable for a large portion of the workforce, irregular employment, including gig work, continues to rise.
This trend has sparked debates within Japan’s political circles. During the recent elections for the Liberal Democratic Party (LDP) leadership, several candidates proposed relaxing labor regulations to make it easier for companies to hire and fire regular employees. Proponents argue that this would promote job mobility and reduce the cost of changing jobs, potentially improving overall productivity. Critics, however, worry that such reforms would only exacerbate the rise of irregular employment, leaving more workers vulnerable to the precarious conditions that gig work often entails.
Timee’s success also underscores the growing issue of income inequality in Japan. As the number of gig workers increases, so too does the gap between high and low earners. Japan’s Gini coefficient—a measure of income inequality—rose nearly 60% between 1980 and 2019, and the trend shows no signs of reversing. The growing divide between the securely employed and those dependent on gig work raises concerns about the future of Japan’s social fabric.
Experts warn that the expansion of platforms like Timee may further entrench inequality. The platform’s users, many of whom are already marginalized in the labor market, may find it increasingly difficult to escape the cycle of low-paying gigs. As competition in the gig economy intensifies, and more well-funded companies enter the space, there is a risk that workers will face even harsher conditions and lower wages.
Timee’s future is uncertain. While it has established itself as a leader in the gig economy, the entry of larger competitors could pose significant challenges. Mercuri and other tech giants are well-positioned to offer more comprehensive services, potentially undercutting Timee’s market share. At the same time, Japan’s evolving labor market presents both opportunities and risks for gig work platforms.
Ogawa and his team must navigate these challenges while remaining true to their mission of addressing Japan’s labor shortage. If Timee can successfully expand its partnerships with rural communities and industries, it may be able to carve out a sustainable niche in the market. However, the platform must also address the concerns of its workers, many of whom are trapped in precarious gig work with little hope of advancement.
As Japan’s labor market continues to evolve, Timee’s journey will serve as a bellwether for the future of gig work in the country. Will it become a vital part of Japan’s labor solution, or will it contribute to a growing divide between those who thrive in the new economy and those left behind?
