What is the Gig Economy: Everything You Need to Know (Part 1)

What Is the Gig Economy Everything You Need to Know

“The Gig Economy”—you may have heard of the term and pondered what it is, and for what reason it is creating so much buzz. Well, don’t get confused. Let us walk you through everything you will need to know about it.

A large number of people around the world are choosing independence in their work lives. They are joining the growing gig economy movement. Thanks to technology, GPS-empowered smartphones and laptops, online freelancer platforms, and time-tracking apps are enabling people who have skills and those who need to use those skills to find one another directly, quickly, and efficiently. To the optimists, it guarantees a future of enabled entrepreneurs and limitless growth.

But, before you dive deeper and plan for gig economy app development with diverse features and functionalities, let’s understand this from ground level to make it a success…

What Is the Gig Economy?

“The gig economy isn’t new People have always worked gigs, but now when most of the people refer to the “gig economy,” they’re discussing new technology-enabled kinds of work.”

–Ms. Molly Turner, Lecturer, Haas School of Business, University of California Berkeley and the former Director of Public Policy for Airbnb

In an easy way, the gig economy is an established ecosystem, offering freelance or contract work for millions of people around the world. It is a free market in which companies sign a contract with an independent worker, or you can say giggers, for short-term engagements that span from a few minutes to multiple months.

The word “gig” is an informal word signifying “a job for a predefined time frame” and is used in reference to musicians. Example of gig employees includes freelancers or giggers, contractors, project-based workers, and temporary or part-time hiring.

The trend towards the gig economy kicked off when a study by Intuit anticipated that by 2020, 40 percent of American workers would be independent contractors.

There are many forces behind the rise in short-term jobs. Yet, freelancers can choose jobs and assignments around the world as per their need and availability. At the same time, employers can choose the best people for specific projects from a larger pool than that available in any given area.

Why is it Called the Gig Economy?

Though it’s a temporary work system which is for short-term, yet it develops a strong bond between workers and companies to create or perform task-based employment. That is why it is known as the gig economy. And, the work performed by workers in this ecosystem is known as a “gig” and they are paid for these “gigs”.

In this online marketplace, companies and freelancers apply to fill the requirement of job and services via advertisements. For instance, Uber and Lyft are two of the biggest transportation organizations around the globe, however, virtually they own no vehicle. Independent drivers offer their vehicles as well as services to the customers in return of payment.

It offers many benefits for freelancers as well as businesses to earn and grow independently.

Benefits of the Gig Economy for Freelancers

Benefits of the Gig Economy for Freelancers

Great Flexibility

Research by the Pew Research Center gives some context for what is drawing people to work as freelancers. Many freelance workers in the gig economy find that this ecosystem offers them great flexibility. There are many options for the gig workers such as working hours, working from a remote office, or from home. A task is assigned to a worker with an end date. Then, it’s up to giggers how they do that task. This is often attractive to people who love to be around family and work as per their flexible schedule.

Americans express mixed views of the benefits of internet-enabled

Source: “Gig Work, Online Selling and Home Sharing” – Pew Research Center

Make More Money

Also, the platform is best when it comes to making more money. As indicated by different data collected by CNBC, the average monthly earnings on this platforms are $924 on Airbnb, $377 on Lyft, $504 on Wonolo, $380 on TaskRabbit, $364 on Uber, and $364 on Doordash.

By merging different work types or using applications like Uber or Wonolo, you can transform the little amount into serious cash-flow. It, thus, helps you to add some more fun to your lifestyle or improve your financial situation.

Freedom to Travel

If you are a travel freak, the gig economy is for you. You can drive any time or any place around the world, and work either from a coffee shop or on the beach as comfortable as you’re in your bedroom. On the other hand, the gig economy platform even adds opportunities for a blogger/vlogger in exploring new cities, streets, or places as a guidebook for other travelers. This helps them earn while traveling wherever and whenever they want.

Greater Independence

Gig economy or contract workers are completely independent to complete their work as per their need keeping the end date in mind. The gig workers can freely perform their tasks without having anyone on their shoulders. This can be a great booster to raise their confidence, and give workers the ability to complete the job in the best possible way as they want and on time.

Myriad Job Options

Gig economy workers may find that they have a wide variety of job options to pick and complete. So, like a permanent worker, giggers don’t have to perform monotonous tasks each day, on each project, and within the same time span. The platform gives a myriad of options to pick a job as per their skill set, passion, or need.

Many websites that offer freelance work opportunities include Freelancer, Fiverr, and Upwork. These websites help giggers find gigs that pay well as per workers’ profile and capabilities. This further enables workers to make them more excited about projects, and more ready to deliver innovative and exceptional work.

Benefits of the Gig Economy for Businesses

Benefits of the Gig Economy for Businesses

Trust at Work

The gig economy builds trust among businesses and workers. Acquiring your workers’ trust is very important to create a win-win gig economy. By understanding their needs and concerns, businesses actually help them to deliver quality products and services.

In this way, businesses can show workers that you respect them enough to gain trust. The more you build trust with your giggers, the better you gain customer engagement. Once you meet them and continue to offer strong service, they become ambassadors for your brand and bring new customers.

Transparent Communication

The gig economy platform is like a boon for all the freelancers as there is no one to mediate. This helps workers perform tasks with clear goals and expectations in mind. It creates a transparent mode of communication with employers and giggers. The good thing is that whatever you communicate, it is documented automatically.

Leverage Outsourcing

It is very helpful for bosses to outsource the work that they otherwise need to pay an in-house team for Visual communication/graphics, content management, copy writing, and social media marketing are a few instances of these jobs. Organizations are now choosing long-term freelance workers than permanent workers.

Since organizations don’t need to pay extra expenses and provide work equipment as a full-time worker, gig workers have a lower cost than permanent workers. This enables them to save on expenses, and pay for the genuine work that a freelancer does.

The Diverse Pool of Flexible Workers

The gig ecosystem provides a pool of experts with diverse skill sets which businesses can leverage by hiring them. These workers include a wide variety of affordable developers, designers, copywriter/content writer, consultants, and what not, which brings a broad spectrum of skills to the table for lesser prices and flexibility of time than you would ever get with an in-house team

The gig economy offers organizations the chance to grow their customer base and acquire markets that they couldn’t reach before. Companies can likewise get freelancers’ real-time updates to remain aware when they should be required and whom they need to deliver things.

It reduces the anxiety and depression levels for businesses which are otherwise high due to large salaries for an in-house team, low-performing employees, office politics, equipment, overhead costs, etc. With these hassles gone, it helps in quickly testing new ideas or transforming the existing ideas.

Conclusion

The gig economy is an awesome opportunity when it comes to getting employed or making extra cash without any long-term commitments. It offers adaptability in working hours, a wide variety of job options, and so on.

Are you a part of the gig ecosystem yet? If not but want to, hurry up and start making the most out of it. If we are missing something that you think one should know as a beginner, do let us know in the comments section below. We have more to tell you about gig economy apps. Stay tuned!

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Satinder Preet

About the Author

Satinder Preet Kaur is working with Netsolutions as a Business Analyst and has an experience of over 3 years. Besides business analysis, she has knowledge in writing codes in Java and Android. Her major interest lies in on-demand services and e-commerce. In the free time, she likes reading and puzzle solving.

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