Gig Economy to Hosts Drivers Companies

A worldwide debate is taking place regarding the so-called “gig economy,” or independent labourers. What is it, exactly? And how significant is what is taking place?

Having a regular 9-to-5 job with one company or being on the payroll is no longer an option for millions of people. Instead, they are self-employed, juggling multiple sources of income.

Business

Whether you’ve ever used an app to contact a freelance taxi driver, book a vacation rental, or order meals, you’ve likely participated in this area of the economy.

Digital platforms that actively enable matching between suppliers and clients, on short-term and payment-by-task basis, constitute the “gig economy,” according to the government of the United Kingdom.

Flexibility at Work

According to the OECD research, the most prevalent reasons for working on a gig economy platform are generating additional revenue and gaining greater work flexibility.

According to the research, “Overall, most gig workers are content with their job and working for gig economy platforms appears to represent mostly personal decisions rather than the absence of alternative options.” Many platform workers—about one in five—use the platforms because they can’t find job as salaried staff members.

Four Distinct Groups of Self-Employed Workers

  1. Freelancers, or those who want to work on their own terms and rely only on that revenue.
  2. Those who work from home as a way to supplement their income, rather than as a full-time job.
  3. People who earn their principal income via self-employment, but who would rather have a regular job, are known as “reluctants.”
  4. Financially strapped people who have to augment their income by working on their own as a form of self-employment.

The challenge for public policymakers is to keep all four of these constituencies satisfied, which may include making changes to existing policies in order to prepare for the digital age. The McKinsey Global Institute analysis stated that challenges exist, but they are not insurmountable.

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Last Words

There is space for policymakers, innovators and new intermediaries to create solutions in areas such as benefits, income security and training/credentialing. Individual workers and traditional employees alike will have to take a more active role in managing their careers as the world of work is being transformed by digital technology.