Gig Economy – The Future of Work
Instead of a more traditional system, where an employee works full-time for only one employer, some are choose to enter the gig economy for the flexibility, freedom and personal fulfillment.
What is a 'Gig Economy?'
Gig economy means temporary and flexible
jobs are commonplace and companies tend toward hiring independent contractors
and freelancers instead of full-time employees. A gig economy undermines the
traditional economy of full-time employees who rarely change positions and
instead focus on a lifetime career
There are people in high number who
are willing to work part-time, the result of a gig economy is cheaper, more
efficient service, such as OLA or Swiggy.
Example 1: OLA
As mentioned in OLA website
Ola is one of the world’s largest
ride-sharing companies. Ola integrates city transportation for customers and
driver-partners onto a mobile technology platform ensuring convenient,
transparent, and quick service fulfillment. Ola is focused on leveraging the
best of technology and building innovative solutions ground-up that are
relevant at global scale.
It is with a revenue of approx. 758
crores (US$110 million) (FY2016) only with 6000+ employees but employment
provided is for 10, 00,000 driver-partners across cabs, auto-rickshaws, and
taxis.
Example 2: Swiggy
As per Swiggy website and internet
sources, Swiggy was inspired by the thought of providing a complete food
ordering and delivery solution from the best neighborhood restaurants to the
urban foodie.
Major Sources of income in Gig Economy
is commission based, certain % of amount taken from drivers by OLA and Swiggy
commission charges are pegged between 15-30% across different restaurants and
value of orders on the platform, but include delivery and payment charges.
Swiggy also pay commission to the partnered delivery executive.
Few more examples are Uber, Airbnb
etc.
Conclusion:
Gig economy creates a win-win
situation to the agent and company.
Gig economy is creating more dynamism
in the job markets by connecting talent with opportunity through digital.
It is more of creating employment in high numbers with flexibility of workers in on-demand services/products. Gig economy is dealing with high numbers of contractors which is with high risk and obligations who are employed. Because it is dependent on external factors like government compliance and competition raise etc.
-Siva
