ECONOMY & WORK
MONEY 101
NEWS
PERSONAL FINANCE
NET WORTH
About Us Contact Us Privacy Policy Terms of Use DMCA Opt-out of personalized ads
© Copyright 2023 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.
MARKETREALIST.COM / ECONOMY & WORK

How Gig Work Widens The Gap Between Workers And Customers

In the US alone, about 64 million people are working as freelancers or as gig workers
PUBLISHED APR 4, 2024
Cover Image Source: Unsplash | Photo by Kai Pilger
Cover Image Source: Unsplash | Photo by Kai Pilger

The gig economy has become a hot topic across the globe. Aided by technology, gig workers make up a significant portion of the employment pool. In the US alone, about 64 million people are working as freelancers or as gig workers on various platforms such as Uber, DoorDash, and more, according to a 2023 Upwork report. But despite its benefits, its downsides are hard to ignore.

Image Source: Unsplash | Photo by Luca Campioni
Image Source: Unsplash | Photo by Luca Campioni

A gig economy is a labor market that heavily relies on temporary and part-time workers who are independent contractors or freelancers. As opposed to full-time permanent employees, gig workers have the flexibility and independence to work anywhere anytime. Gig work platforms create substantial value as they allow customers access to convenient food deliveries, rides, and other services at the push of a button.

Image Source: Unsplash | Photo by Jon Tyson
Image Source: Unsplash | Photo by Jon Tyson

Such employees enjoy freedom but have to let go of benefits such as job security, consistent pay, labor protections, health coverage, paid vacation time, and more. Thus, a gig model allows employers to save money as well by saving on the associated costs of such benefits.

Gig workers unlike traditional employees have little to no collective representation. Thus, fighting for rights and benefits can be extremely difficult as they are not yet entirely protected by employment laws and regulations.

Furthermore, as competition has increased, the gig economy trend has made it harder for full-time employees to develop their careers since temporary employees are often cheaper to hire and more flexible.

Image Source: Unsplash | Photo by Faizur Rehman
Image Source: Unsplash | Photo by Faizur Rehman

On the other hand, while flexibility can be beneficial, it can also disrupt work-life balance, sleep patterns, and activities of daily life for workers. Flexibility often leads to workers forcibly making themselves available when the gigs come up, regardless of their other needs. They also miss out on developing professional relationships with both fellow workers and customers.

As per a Harvard Business Review Report, professional conflicts between companies, workers, and customers have been historically resolved when two of the groups allied to force a change.

Sociologist Robin Leidner coined the term “customer service triangle” in this situation where two of the three critical stakeholders shared an interest in putting pressure on the third. Given how often gig workers are exploited by big companies, such an alliance with customers can help them greatly. Customers can side with the workers and retaliate by boycotting platforms to enforce a change.

However, this model of alliance has not happened in the gig economy. Even when boycotts like #DeleteUber were launched, they had minimal long-term effects. According to HBR, this is because the gig economy business model inherently pits customers against workers.



 

Customers are most often not aware of the darker underside of the platforms they use as the interactions between them and gig workers are fleeting and highly transactional. Furthermore, the impermanence of the job doesn’t allow gig workers to develop meaningful relationships with customers.

The barrier grows wider when customers are expected to help companies “manage” gig workers, by rating their performance, or by providing feedback on their work. Thus, the gig model is structured in a way that strengthens the alignment between customers and companies.

According to HBR, platforms, and customers need to step up to achieve a balance among the three sides of the triangle. Platforms need to be more transparent about their treatment of employees and their policies by building better digital infrastructure. As for the gig customers, they can make an effort to learn more about the working conditions of gig workers and treat them kindly.

Furthermore, policymakers also have a big role to play, according to an analysis from University of Melbourne. They can help enhance oversight and regulation of gig platforms, invest in urban centers for gig workers like food delivery riders and rideshare workers, raise awareness around the hardships faced by these workers, and formulate tougher penalties for gig worker abuse.

MORE ON MARKET REALIST
Fans complained that Carey maybe getting too old to take all the physicality during celebrations.
3 hours ago
Everyone has their own preferences but few people ever talk about this stuff on national TV.
5 hours ago
Drew Carey cares about his co-workers but he also doesn't hesitate to laugh at their expense.
8 hours ago
It's a moment of happiness when someone gets a deal on the show but it doesn't always end well.
9 hours ago
The models on "The Price is Right" are usually quite adept at their jobs but mistakes happen.
1 day ago
The models on the show are usually nice to contestants but this was a confrontation.
1 day ago
Steve Harvey really got agitated in this moment and he made no attempt to hide his feelings.
1 day ago
Lancaster did regain her balance but she caused collateral damage to save herself from embarrassment.
1 day ago
The contestant didn't lose her enthusiasm despite the fall which is admirable.
1 day ago
Steve Harvey is a patient host but some things just get on his nerves and he makes it clear.
2 days ago
The veteran host could not control his laughter after realizing the prank his colleagues had pulled.
2 days ago
Few people expected those words to come from the new host of the popular game show.
2 days ago
The Price is Right has always seen emotional contestants but this moment was just epic.
3 days ago
Mark Cuban has a good eye for potentially successful businesses but this one was just special.
3 days ago
The veteran host usually makes fans laugh with his words and not his actions but this was epic.
3 days ago
This contestant sure had a lot of nerve to say what he did about the mother of his child on TV.
3 days ago
The Reddit user wasn't expecting a former contestant to share insights on cracking the puzzles.
4 days ago
It didn't turn out to be something serious but it was still a traumatic experience for the customer.
4 days ago
The veteran host is usually a sympathetic individual but this one was a hilariously freakish moment.
5 days ago
Costco might be one of the biggest supermarket chains but that's not going to save it from criticism.
5 days ago