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Writer's pictureCorey Portell

The on-demand economy: Workers on tap

The on-demand economy: Workers on tap. (2015, January 3). The Economist. Retrieved

from https://www.economist.com/leaders/2014/12/30/workers-on-tap


The economy is divided into two categories of people, those with time but no money and those with money but no time; the Gig economy allows those two groups of people to exchange. The Gig economy increasingly puts idle resources to work, cars are driven by Uber drivers that would otherwise sit parked, or those with spare time can complete cognitive tasks for Amazon Turk; there is flexibility for workers, but a lack of stability. Individuals can choose to work whenever the like, setting their own hours, but when services are on-demand and provided by contract workers, those workers are at the mercy of individual consumers. Most states and the federal government do not have laws supporting contract workers, they are only employer driven. While low-skilled work is easily found in the Gig economy, so is contract work provided by skilled laborers. Lawyers can be connected with on demand to complete a contract, a doctor can make a house call within two hours; those who want to expand their income or continue practicing are able to make money in this economy alongside Uber drivers and Handy workers. Gig economy work is changing the nature of labor and continues to stratify income; those who already make money, like doctors and lawyers, are able to build their portfolios or earn additional income, those who live paycheck-to-paycheck are required to find enough work to pay their bills at all times. Work may never stop for many. Every component of time and resources is able to be commodified; if you do not own a car but want to drive for Uber, another startup can connect you with a rental owned by someone who does not drive it at night. This process of niche specialization is both for new companies and for individual workers who must navigate new businesses and gain additional skills simply to get a paycheck at all. On-demand companies face challenges, too, like how to train, manage and motivate temporary employees. They often encounter regulatory and political problems as they grow and scaling up is difficult as workers can move from job to job without loyalty. While companies used to outsource routinized work to other companies via a contract, they can now outsource the work to individuals. Globally, this may offer opportunity to those unemployed in countries with lack of opportunity, but it will also offer labor challenges as sick pay disappears and individuals bear the responsibility to themselves that employers used to own.


This article forced me to consider inequity of time in addition to other forms of inequality, and how many companies in the gig economy have seen this as a boon for new businesses. While I recognize that businesses like Uber and Instacart provide financial opportunity that may not have existed before, this article also helps me to articulate the dangers of removing stability in favor of flexibility.


LO2: demonstrate the ability to assess complex organizational environments and achieve communication goals.


LO5: critically analyze messages.



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