What Will Happen To Care Platforms In Australia?

Concept of The Gig Economy written in a book with related keywords, isolated on a wooden table, symbolising the evolving nature of work and its challenges, especially in sectors like digital care.

The gig economy has transformed the way we work, and Australia’s digital care sector - led by platforms like Mable, Hireup, and Like Family - is at the forefront of this change. These companies have reshaped personal care by directly connecting caregivers with clients through digital platforms. But as with Uber, Foodora, and Deliveroo, this new way of working brings its own set of challenges, including regulatory crackdowns and operational risks.

Lessons from the Giants: What Can Care Platforms Learn?

Gig economy heavyweights have faced major hurdles. Uber’s recent $270 million legal settlement, along with the retreat of Foodora and Deliveroo from multiple markets, shows how relying on gig workers without keeping up with labor laws can backfire. The takeaway? Compliance is king. Balancing worker rights with cost efficiencies is the only way to keep your business model sustainable in the long run.

The Pressure’s On: Why Care Platforms Need to Pay Attention

In the care sector, stakes are even higher - human well-being is on the line. With regulatory scrutiny ramping up, digital care platforms could face tighter margins and higher operational costs. To thrive in this environment, scaling up - through mergers and acquisitions - may be the key to surviving and growing.

Mergers & Acquisitions: The Path to Growth and Stability

M&A offers care platforms a way to bulk up customer bases and gain the operational scale needed to absorb compliance costs and boost service delivery. Acquiring specialized services or integrating new technologies can streamline operations and enhance the care experience. Bigger players also have the advantage of stronger legal and compliance teams, making it easier to navigate complex healthcare regulations and stay ahead of the curve.

Conclusion

Australia's digital care platforms need to learn from the challenges faced by gig economy giants like Uber, Foodora, and Deliveroo. As regulatory scrutiny increases, care platforms will likely face rising operational costs and tighter margins. To navigate these pressures, mergers and acquisitions (M&A) could be the key strategy to scale operations, improve compliance, and enhance service offerings. By growing through acquisitions, care platforms can ensure sustainability, manage regulatory hurdles more effectively, and continue to innovate in delivering quality care.

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About Zenify Investments

Zenify Investments is a boutique buy-side M&A advisory firm specialising in the $1M–$50M SME acquisition market. Based in Sydney, we advise CEOs, boards, investors, and growth-focused owners who use acquisitions not just to grow - but to build businesses that are stronger, more defensible, and more valuable over time. Our work spans the full M&A lifecycle - from target sourcing and market intelligence to valuation, risk assessment, and deal completion.

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