It is undeniable: the gig economy is on the rise. Through smartphones or computer applications, service providers and seekers of that particular service are connected directly. Whether it is a car ride (Uber and Lyft), a place to stay (Airbnb) or a small task (Amazon Mechanical Turk), more and more people prefer to use these platforms to find a service instead of hiring traditional companies. And, just as importantly, more people prefer to work in this gig economy. What is it that makes this new way of finding and providing services so attractive? In other words – what drives the gig economy?
• The widespread availability of internet and smartphones. During the time before smartphones, communication between gig providers and seekers was difficult and time-consuming, often relying on word-of-mouth. Now, the two can connect through the internet quickly and directly.
• Unemployment and the struggle to find a suitable job. According to set of studies by LinkedIn and Intuit, unemployment is a big influencer for job seekers to try their luck in the freelance market. Especially the ones that have difficulties finding a regular job (e.g. people with a criminal record) see this more independent way of working as a solution to their employment issues.
• Flexibility and control over your own schedule. Most gig workers are independent contractors. While they might find clients on a company’s platform, they work for themselves. This gives them control over when they work and how much they work.
• Extra income in addition to a regular job. The standard nine-to-five job is no longer the norm. LinkedIn has seen a 100% increase of already employed people adding gig work to their resume.
• Social interaction and enjoyment. According to a survey by the Pew Research Center, 42% of people working in the gig economy are casual gig workers. They state that they do not necessarily rely on their gig income as a means to survive. They are less affected by rate cuts and often do it just because they like it.
• Customer benefits. Often, gig workers and their services are cheaper than their traditional counterparts. It can also be a lot quicker and easier. For example, ordering a taxi can be a struggle outside of well-travelled areas. Apps like Uber of or Lyft direct drivers straight to their nearest customer, which can significantly reduce waiting times. And without the need for certification, gig workers can offer lower fares than, for example, regular taxis or hotels.
