Essay about Case Study : The Gig Economy

1476 Words Oct 3rd, 2016 6 Pages
Case Study #1: The Gig Economy

The gig economy is a very interesting way to make a living, and it is becoming more wide spread. Musicians have always worked in a gig economy, but there are now far more ways to make money than simply playing in a club on a Friday night. According to Vanessa Page at Investopedia, “in 2014, 91 million people worked in the gig economy” (Page). The IRS records this as nearly 30% of the American economy (Page). That amounts to a relatively large number of people making their living from gigs. The rise of companies with easy to use apps such as Uber, Lyft, and Airbnb suggest that gigs are here to stay.

While gig economy jobs look like they are here to stay, the industry is also facing a degree of uncertainty. The California Labor Commissioner recently ruled that Uber drivers were not independent contractors like the company claimed, but rather employees that deserved the benefits and protections of employment (Scheiber). This could discourage potential companies from using a gig form of business model.

Airbnb is a good example of a company working within the gig economy. The way Airbnb works is anyone can go on the website and make a listing for a room or entire house to rent. The user sets his or her price and availability for the space. Consumers can then find the listing and make a reservation in the same way that a hotel reservation would be made. Airbnb then pays the user through paypal or direct deposit. The service only costs the user…

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