The emergence and spread of the novel coronavirus has spotlighted the gig economy, showcasing not only the good of it, but also the bad and the ugly.
Alongside reports of heroic efforts of essential workers like shoppers, drivers and service providers, Inc. reports that attention has also been cast onto issues such as lack of hazard pay, sick leave benefits and safety protections.Â
While companies in this space are making topical changes to address the immediate concerns of providing in-person services during the coronavirus, TaskRabbit founder Leah Solivan argues that the pandemic provides a good opportunity for a broader evolution of the independent economy. Specifically:
• Accounting for nuance—While some people may get into gig-based work for extra cash flow, others may get involved to meet people. Many others are solo entrepreneurs, relying solely on the independent economy for work. During and following the financial crisis of 2008, TaskRabbit experienced a surge of new independent workers looking to fill income gaps, replenish savings or gain flexible income, and Solivan expects much of the same following COVID-19.
• Reclassifying freelance work—Many people go into the gig-economy for the flexibility it affords, being able to set their own hours, pay rates and own discretion whether to accept a gig. While workers can’t get that flexibility in a W-2 job, Solivan writes that 1099 status doesn’t offer appropriate protections for these types of workers, which is being illuminated through the COVID-19 crisis.
• Challenging the old models—The 2008 financial crisis shifted consumer and professional behaviors, and it primed the population to seek new and innovative ways to do business. It was those conditions that made the first wave of the independent economy possible, and with similar conditions today, the sector is in a good position to make changes. Read the full story, which includes more detail on each of these areas.
