The gig economy of challenger brands like Uber and Airbnb: who wins and who loses

The development of digital platforms, together with their capillary distribution, is giving rise to increasing growth in the phenomenon of “on-demand work”, to use a definition that has been borrowed from the Economist. What apparently seem to be just “odd jobs” or “occasional gigs” have, however, enabled challenger brands like Uber and Airbnb to become world giants.

Let’s clarify matters: the difference between gig and sharing
There is often confusion that surrounds the gig and sharing economy: the latter is well summed up by the example of BlaBlaCar, the car pooling system based on splitting travel costs between the driver and passengers seeking to travel the same route. This is not the same, for example, for Uber: the driver answering a passenger call via app eliminates the concept of sharing in favour of a service provided in exchange for payment.

Some etymology
“Gig” is an American English term used to informally define an odd job or temporary and occasional appointment. Hence the neologism “gig economy”. Thus the legendary permanent position breaks down, clearing the way for work on demand, when there is time and need. Almost one in every four Americans earned their living this way last year. But what exactly is this new form of work?

The new frontier of food
Getting into the gig economy means talking about food. And two names first and foremost: Foodora and Deliveroo. The supply and demand for work meet in digital apps and the “riders” head off on their bicycles, offering you home delivery at truly competitive prices. Perhaps too competitive, in fact, giving rise to protests for greater protection and a dignified minimum salary.

A great many directions but no guidance
And indeed this is the most controversial point of the gig economy: the lack of precise rules by which to manage the dynamics dictated by the progress of technology in a context of maximum working flexibility. Some define all this as the best possible way by which to allow the employment market to move forward, whilst others label it as legalised exploitation. What is certain is that traditional players, accustomed to dominating and not willing to renew themselves are suffering more than ever with the competition from Airbnb and Uber.

There is a fine line between independent and dependent work on which there is still a lack of clarification, but the fallout of these activities will certainly bring about major innovations. In the meantime, why not grant yourself that much-desired sushi sat comfortably on your sofa?