Demand for E-Commerce Deliveries and On-Demand Car Hailing Services Spurs Gig Economy Worker Demand

One of the perks for independent workers is choosing when and where to work. Uber reported that as of late 2019, 92% of its drivers worked less than 40 hours per week, and 45% work fewer than 10 hours per week. RBC Capital Markets conducted a survey of Uber and Lyft drivers in 2019 which found that 70% of respondents being “extremely” or “very” satisfied with their job experience.

There is a significant debate underway in many nations as to whether or not people working as Uber drivers, Instacart shoppers and similar agents are actually employees, rather than contract workers. Legislative reform may well be attempted on large scale in this regard. In some cases, class action lawsuits have been filed by the contract workers. If governments rule that such workers are employees, it would have a massive effect on the business models of sharing economy firms. In the U.S., for example, it would mean that firms were subject to paying payroll taxes such as Social Security, and were subject to very high levels of labor, safety, health and anti-discrimination laws. This debate will likely continue for many years to come, and may well lead to legal reform in some nations. Another outcome may be the formation of contractor workers’ unions or union-like organizations that might demand better pay or working conditions. The “Independent Drivers Guild” now exists in New York City, representing tens of thousands of local Uber drivers, but not quite acting as a true labor union.

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Demand for E-Commerce Deliveries and On-Demand Car Hailing Services Spurs Gig Economy Worker Demand, Business and Industry Trends Analysis

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