In sum, the main challenges are: - Workers becoming dependent on gigs for income - Employers fighting against recognising their employees - Unsustainable business models that struggle to turn profit So can it be fixed? Shepper (@AskShepper) thinks so

Safety issues come to the fore too. The International Labour Organisation draw a direct correlation between growth of the gig economy, and a rise in worker deaths for those working 55+ hours a week

California passes a law forcing employers to afford employee status to part-time contractors: in response, companies including Uber, Lyft, and DoorDash drive forward Proposition 22, which grants them an exemption to this law

Controversies arise around the employment rights of gig workers. Uber and Deliveroo have engaged in lawsuits with employees fighting for employee status and recognition. During COVID, this becomes particularly pressing as many workers fail to qualify for furlough payments

16% of gig workers are financially strapped (they’d prefer full time work but rely on gigs) 13% use gig work to pay all expenses 11% use gig work to pay rent every month

Demand for the gig economy shifts, though. What once was envisioned as a way of topping up disposable income and increasing employment flexibility changes. The stats say it all👇

By this point, the scale of the gig economy has ballooned. In 2019, Uber completed nearly 7 billion rides, and Airbnb received 272 million bookings

Apps like Uber and Airbnb capitalise on the concept, allowing anyone to monetise spare rooms or spare seats in their car. The concept is spun out further by TaskRabbit, which allows users to earn money for errands or simple chores

Early success stories include Craigslist, which allowed you to post gigs and part-time work, and Elance (now Upwork), used to connect freelancers to clients

The internet transforms access to part-time work and odd jobs, as well as facilitating micropayments that make gig work possible. It’s often referred to as the digitalisation of the informal economy

The term ‘gig economy’ was coined by journalist Tina Brown, referring to workers pursuing “free-floating projects, consultancies, and part-time bits and pieces” to make money

The rise and fall of the gig economy A THREAD 🧵

3. Why the gig economy has failed—and how @AskShepper is fixing it

❗The Founders Factory Startup Bulletin October edition is out today on Substack❗Read and subscribe here: bit.ly/2YfU8uH Here’s five things you’ll learn if you read it 👇