Will Gig economy affect your business?

Economy, Industry News
gig economy

A gig worker, also known as an independent contractor who takes a single specific part or whole business requirement and executes alone or in a small team at a comparatively much lower cost than professional established businesses.

It’s a very exciting job among youngsters but a big pain for established businesses and they lose a big chunk.

If we look at the history of the gig economy, It’s not something new in the market, in fact, the gig economy or contractor economy has been existing for centuries. But, in 2020 the gig revolution is going beyond limits.

Professional companies are reporting having less business flow and the labor union having less influence over the market pricing.

From a new low budget business point of view, the gig economy is good as it gets the job done at a lower cost, but from a high GDP country economic point of view, it’s a big pain.

What services are being offered in the gig economy?

 

 

Till 2010, the digital gig economy was majorly done by small companies and independent freelancers. Services like web design, website development, server management, social media marketing, content curation, product design were executed.

Popular Industries in Gig Economy

 

Every industry has almost 13+ subcategories that filter gig workers who specialize in specific jobs.

Being specific to the growth, the major big market share has started changing in the 2nd decade of the 21st century. In this, a lot of freelance aggregator companies like freelancer.com and fiverr.com became popular.

Initially, it was quite helpful to both parties, freelancers and independent contractors as both parties met in a single umbrella and fulfilled their needs. But then, market leaders like freeleancer.com started charging hefty in commission from freelancers and started forcing freelancers to pay for every proposal submission.

2nd generation cheap gig marketplaces

Fiverr.com, which has been popular among youngsters to start their 1st freelance career and among businesses to get the job done for $5, took a new leap and added almost every service available from the general service industry.

Some of the surprising business categories like legal writing, Product photography, flyer distribution which are usually done offline were also added.

fiverr

 

After becoming popular to $5, Fiverr changed its definition by adding high price services available on its platform to compete directly with freelancer.com and gain a big chunk of the industry.

In the 4rth quarter of 2019, they added 200+ services which included services like business card design to legal consulting which is quite shocking.

What about local businesses that do this as real service?

Are, Fiverr and freelancer like companies going to rule service providers as amazon do its sellers? How high GDP countries will survive if all the services get outsourced from lower GDP countries?

Should the government look at the issue before it becomes a big pain for the people and the economy?

Will the gig economy affect your business?

 

Other Resources:

  1. Harvard business review
  2. https://www.youtube.com/watch?v=o1FZ-DXb4Ts