Gig economy, also referred to as ‘crowdsourcing’ sharing economy is a place where individuals can market their skill sets. Both skilled and unskilled professionals can sell their skills on a different platform or companies. With downsizing trend of talented professionals, the rise of the digital age where the workforce is increasingly becoming mobile and can work from anywhere and the different effect of globalization to create more opportunities, the gig economy is gaining attention in the current generation of the professionals. Today’s economy has created opportunities in the global marketplace for contractors working independently to expand their business both in Nationally and Internationally & to capture the global market beyond professional service. With the gig economy more efficient services are provided at a cheaper rate For instance; Uber, HopSkipDrive, parking panda etc.
Some great example of gig economy-
UBER- It is the most successful example of gig economy here anyone can according to their own availability, route and convenience may choose to start by connecting their own personal vehicle.
HOPSKIPDRIVE- A Great start-up idea that provides an easy commute for those children whose parents are busy and may not have time to drop them to their coaching and schools. They hire drivers of age 23 and above.
PARKING PANDA- In these crunch times with traffic at all time high, ever increasing parking space is a good thing. This app brings space seekers and space providers together. Anyone can post online if they have space for parking and according to the convenience of customers they may take it.
AMAZON FLEX- This is also a good platform for earning. Through this app one can earn by delivering goods according to their own convenience.
HOW DOES THE WHOLE PROCESS OF GIG ECONOMY WORKS?
It consists of tasks (anything like delivering lectures, delivery of goods, providing services, working on software development). Person can opt to work for specified hours on project once the former work is completed the person moves on to the next project. In the gig economy the company is not an employer of workers rather than a connector between the contractor and clients. The gig economy mostly operates on technology platforms that aim to connect the workers working for the flexible work arrangements with the company.WHY GIG ECONOMY IS FLOURISHING?
There are a number of causes that help in growing the gig economy. First one is that the workers seem to have preferred freelancing over full time employment due to its flexibility and independence. It has created better work opportunities for finding more different work across the globe and made work more adoptable & flexible. The working professional can choose the type of work & working hours according to their convenience that other types of job will not allow. Companies are benefiting from having a flexible workforce. They are spending less money on training and recruitment and need not to pay many types of other allowances and can easily replace their workforce if needed.
CONDITION OF GIG ECONOMY IN US AND INDIA-
• 36% of the entire workforce in US is a contribution based on primary and secondary jobs.
• 29% of the US workers have an alternate work arrangement thus contributing towards the size of the gig economy.
• 63% of full time US workers have expressed their desire to start working independently if given the opportunity.
• Close to 37% of the full time freelancers independents gig workers are relatively young between 21 to 38 years.
• India has emerged the 5th largest country for flexible staffing after the US, China, Japan and Brazil. Furthermore, India is witnessing a rise in the need for supplemental income due to high unemployment among the rural and urban areas.
IMPACT OF ‘COVID 19’ ON GIG ECONOMY
The whole world is ambushed into a virus named Coronavirus. It has left a long lasting impact on the whole world. It has left the whole world into a deep recession. Covid 19 has greatly hit the job market. However, in case of gig economy some are struggling to find work, while other has shown increase in job opportunities like delivery drivers or those who pick up food orders from online platform such as Big basket and Zomato which have seen demand skyrocketing as consumers are facing lockdown across the globe.
A challenge that gig economy workers may face is that they are typically not organised with government and any regulatory authorities making it difficult to ensure that government helps will reach to them.