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NextGen Magazine

 
 

Gig Economy Changing Amid Economic Changes, Increased Competition

By:
Chris Gaetano
Published Date:
Aug 14, 2017
By Yinxinybyq - Own work, CC BY-SA 4.0

On-demand service companies like Uber are facing changing economic conditions that are challenging their staffing model of maintaining an army of surplus labor, as many are leaving the gig economy for better opportunities in more consistent workplaces, according to the Wall Street Journal. Many companies are adjusting by adding in perks like tax, health and car maintenance services, signing and referral bonuses, or simply hiring people full time. The Journal also noted that such perks can help insulate a company from lawsuits stemming from treating independent contractors (which most gig economy workers are) like full time employees, a hazard of the industry. Of course, this brings to mind the question of how these companies can stay competitive when much of their business model is premised on having ready access to cheap labor. Only time will tell.