As we head into a new year, economy experts are speculating about what’s ahead for the gig economy. It’s easy to look at these challenges in light of a global market. But what do the gig economy’s challenges mean for drivers?
Better Options May Cause People to Leave
The gig economy came to the forefront of the American economy during the economic recession of the last few years. Many rideshare and food delivery drivers joined the gig economy because they either lost a job, struggled to find one, or couldn’t make ends meet with the job they had.
While the gig economy presented a beneficial option for many displaced workers, the upswing in the economy may cause them to move back toward more traditional employment. The gig economy does not generally provide the guaranteed hours/salary, benefits, or insurance that more traditional employment does. In addition, while many gig economy workers value the flexibility of the platforms, not all of them appreciate the relative lack of interaction with other employees and/or lack of job training. These missing elements could cause a number of gig economy workers to leave the industry as traditional employment options become more available again.
That said, the gig economy workers who stay part of the industry may see an increase in available work. As many leave the economy, the demand for rideshare, courier and food delivery services is unlikely to decrease. After all, these platforms still tend to be great deals for customers. This may mean the remaining drivers may find more available work.
Work Type Expansion
Currently, most people think of the gig economy as a fairly low-skill job market in that most of its workers didn’t quit a traditionally white-collared field (like, say, engineering or law) to join it. This is, perhaps, why gig economy job reviews often complain of lack of opportunity for upward mobility. One study calls this the “stop gap,” meaning that there is no clear path to move from low skill to high skill work in the gig economy at this point.
There has already been a shift to rectify this situation. Freelance or gig opportunities have opened up for everything from accounting to programming to disability care.
Regulation May (Finally) Change
With the Transport for London ban on Uber earlier this year, the rights of workers in the gig economy is back in the forefront of many lawmakers. While not all gig economy workers want governmental regulation, events like the London ban and other political negotiations, especially surrounding worker classification, could lead to more standardized rights and benefits for workers.
Depending on what governments decide, the gig economy could move toward a more traditional-looking set of worker classifications and protections, including insurance and vacation options for workers. However, it is unclear yet what regulations like these could do to the flexibility that many gig economy workers enjoy.
What About Co-ops?
Many gig economy workers have found themselves working for a platform that doesn’t have their best interests at heart. For most industries, the solution to this kind of managerial shortcoming is a shift toward more employee-owned, cooperative style companies. However, platform-owned (versus employee-owned) platforms have already carved their shares out of the market. Thus, it may prove difficult for a cooperative startup to gain momentum should someone try one.
Gig Economy Job Traps?
The gig economy is a flexible work option that requires a lot of self-motivation and direction. Some argue that these qualities make gig economy work valuable, resume-building experience. Others, however, say that the gig economy looks bad on a resume. This can especially be true when trying to move up in the business world or traditional employment. There is no data at this point to prove one way or another. However, as researchers gather data on this issue, the gig economy may have to adjust to attract and retain workers.
On the flip side, some gig economy workers prefer not to go back to the traditional job market at all. Rather, they value the gig economy’s ability to give them control over their own work and earnings potential. Rather than treating the platforms as an in-between solution to financial difficulty, they approach the gig economy as if they are their own business. Often, this approach pays off.
