Look for a New Class of Start-ups to Provide Gig Worker Benefits

by Index Ventures


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.

Read more in Financial Times. 

Published — Feb. 8, 2019