Our partner Sarah Cannon explores the gig economy and the rise of a new generation of startups that will offer benefits to gig workers. These new firms will enable workers to achieve the right balance of flexibility and economic stability.
App-based marketplaces like Uber and Lyft have revolutionised the way people find work and earn income. Workers today can choose many kinds of short-term and flexible jobs, whenever they want or need.
Yet, this flexibility comes at a cost. Most of these “gig workers”, while they earn income, do not receive benefits, including healthcare, life insurance, disability insurance and pensions. For this new way of working to be a net positive for workers, the ensuing and emerging gap for traditional employment benefits will need to be filled. There are three potential options for filling this gap.
A public solution would see governments step in to provide these benefits. That seems unlikely in the current climate, particularly in countries such as the US.