Gig Economy

The gig economy can be characterized by temporary, flexible, and freelance jobs and allows businesses to hire freelancers and independent contractors for short-term “gig” work. For workers who desire flexible schedules, meanwhile, the gig economy provides them with the ability to earn extra income while prioritizing other responsibilities. 

To gain a better understanding of the gig economy, it’s important to learn what it is, how it works, and some of the main types of gig work involved.

The gig economy is characterised by short-term, flexible jobs that businesses offer to freelancers and independent contractors instead of traditional, full-time employees. In the gig economy, businesses can save money on recruiting, benefits, and payroll expenses, while gig workers benefit by being able to earn income from multiple sources and complete projects and tasks with a flexible work schedule. 

Typically in the gig economy, freelancers and independent contractors get individual gigs using an online platform or mobile app to connect with businesses and customers. Companies like Airbnb, TaskRabbit, Uber, Lyft, PostMates, DoorDash, and Instacart have relied and thrived on this process, giving significant rise to the gig economy over the past decade. In fact, a 2020 study from the ADP Research Institute found that gig work in the U.S. grew by 15 per cent from 2010 to 2019. And by 2023, the gig economy is projected to grow to $455 billion in gross volume transactions according to a MasterCard and Kaiser Associates report.

While the gig economy covers many industries, the concept is essentially the same: gig workers will complete small, on-demand assignments for pay. These assignments could include developing a website, delivering food, walking a dog, or transporting a family from their home to the airport. Once the project is completed, the gig worker moves on to the next assignment. 

Workers who are interested in participating in the gig economy typically need to sign up to their platform(s) of choice by completing an application. Once accepted, they can choose work shifts or projects to complete. For instance, a mother working with DoorDash might decide to work for two to three hours while her children are in school, which allows her to keep her nights and weekends free. In contrast, a virtual assistant may choose to perform a traditional 9-to-5 workday for a company to complete a specific project.

There are many types of gig economy jobs offered by companies whose primary goal is to provide a convenient service to their customer base. Here are some examples of the different types of gig work and the companies involved: 

Virtual assistants: Administrative assistants, receptionists, project managers can find convenient, flexible employment through Belay Solutions, VirtualAssistants.com, and Upwork. Ridesharing: Platforms such as Lyft and Uber allow travelers the convenience of using an app to schedule a ride. All it generally takes to drive for these companies is having a smartphone and car. 

thebalance.com