The Positives of On-Demand Economy Jobs

It seems like every time I turn on my computer I see another story about how bad on-demand economy jobs are. 

But I think critics are missing two very important points:

1. Research on this sector - ours and the research of others - consistently finds the majority of on-demand workers are satisfied and prefer their on-demand work over a traditional full or part-time job.

2. Most on-demand economy workers are part-time (79% according to recent research we conducted with Intuit) and are doing these jobs because they are very flexible.

These positives have been highlighted in several recent articles:

A new narrative: The real motivations for working in the on-demand economy, by Intuit VP Alex Chriss, highlights 5 types of people who are thriving in their on-demand economy jobs:

1. Those who want to be their own boss
2. Aspiring entrepreneurs
3. Displaced workers
4. Part-timers who need flexibility
5. Side-giggers looking for extra cash

See the article for details and examples.

You Are Missing the Point: On-Demand Economy Debate, by Wonolo founder Yong Kim, stresses the flexibility provided by on-demand economy jobs. Key quote:

Regardless of the concerns of policy-makers, litigators, and lobbyists around worker classification, the On-Demand Economy is here to stay because of its core benefit – people feel empowered and liberated knowing that they can work when they want to.

The New Economy Has 99 Problems and Uber Isn't One, by Hire an Esquire founder Julie Shapiro, also points out flexibility. Key quote:

The other UberX and Lyft drivers had a variety of backgrounds from students, insurance agents and startup employees to former restaurant and retail employees. Their reasons for choosing this on demand career option were similar— the ability to work when and how much they wanted, to not have a boss.

They feared being “Instacarted,” if switched to W-2 employees— referring to Instacart’s recent worker reclassification that resulted in restricted and scheduled hours for a low hourly W-2 wage. If this happened, they would stop driving.

Alert readers probably noticed these articles are written by people with stake in this game.

This is because most reporters don't like the on-demand economy and especially Uber. So it's hard to find articles that aren't negatively biased against on-demand economy jobs, even when the reporter acknowledges the positives. 

For example, the BBC's Will Uber Drivers Turn on Uber makes it clear that majority of drivers the reporter talked to like being independent workers, mostly because of the flexibility. Key quote:

Uber's defence in the employee/contractor debate is that its workforce is pretty diverse. Some want to work part-time, others full-time. Some want to work intensely for a few weeks, then take a few weeks off.

It's on their own terms, and Uber says only a contractor set-up makes this possible.

And the vast majority of drivers I spoke to agreed. Passionately.

But, of course, the article focuses on what the reporter calls the exceptions - the folks who are "keen to be employees" - and their problems, instead of the "vast majority" that prefer being independent. 

To be fair, not all on-demand economy workers are positive about their work.

Our work shows a sizable share - about 30% - aren't satisfied and would prefer a traditional job. This group is larger - around 55% - among those working full-time in the on-demand economy. 

There's also clearly a dark side of independent work and we need better laws and protections to improve the working conditions of those being exploited or treated unfairly. 

So I understand why there is so much negative reporting on this topic. There are problems that need to be fixed. 

But we also need to make sure that the majority of on-demand workers who like and find success working in the on-demand economy have the continued ability to choose this path.  

Comments

[Scott Wilder]

You are right - not all 1099ers are unhappy. But as you point out at the end -- we need better laws to protect them. And they need better guidance to manage their careers.