The gig economy, as an alternative to the classical employment system, has been a lifesaver for many, especially during the pandemic. It provides flexibility, diversity and the opportunity of setting your own hours and financial goals. Millions of Australians are part of this chain, whether as customers, workers, or investors.
According to Actuaries Institute, the gig economy in Australia grew nine times between 2015 and 2019, with a 32% increase since 2019 alone.
If you’re considering doing something different than the regular 9-5 workday, like becoming an Uber Eats driver or delivering parcels with platforms such as Amazon Flex, or just putting those landscaping skills up for sale, becoming a gig worker may be for you. Here are the most important things you need to know about the gig economy.
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What is the gig economy?
Simply put, it’s a free market system where, instead of having a full-time job, people work as contractors or freelancers for various projects or tasks called “gigs”.
They are individual workers who perform different tasks based on a contract, for a set period of time. The jobs can be literally anything that fits a demand – from rideshare driving and food deliver to dog walking or tutoring.
How does the gig economy work?
The gig economy is based on convenience – timewise, as well as financial convenience. It uses mobile apps and platforms to connect those offering a service to those demanding it and manage both communication and payment.
What is an example of gig economy?
Any job you find and access through online platforms specially dedicated to list these kind of jobs is part of the gig economy. This includes rideshare driving, painting someone’s house, freelance work, coaching and fitness training.
In Australia alone, there are over 100 active platforms used for various services, like Uber, Uber Eats, Amazon Flex, Airtasker, Airbnb, and eBay, to name a few.
Is Uber a gig economy?
Yes. As you’d expect, ridesharing is one of the most popular gigs. Even if you don’t have a car, you can subscribe to drive one and maximize your earnings on any of the several rideshare apps available.
What are the benefits of the gig economy?
The gig economy has many benefits for those who value flexibility and diversity the most.
Pros:
- Flexibility: you make your own schedule and work whenever it suits you
- Diversity: you can sign up to do more than one thing, which makes “workdays” more interesting because you get to do what you like
- Control: you decide what kind of work you take on and you negotiate your pay
- Potential for high income: since you can work as much as you want, when you want, you can also gain more than you’d normally get paid.
Consumers also get instant gratification, while those providing the services get paid on their own terms and are generally more satisfied than working traditional jobs – it’s a win-win.
What are the cons of the gig economy?
As with anything in life, there are pros and cons to being a gig worker. The success of working in this alternative system depends on different factors that you need to consider.
Cons:
- Lack of benefits: some companies don’t offer benefits to freelancers or contractors. This means you may not be entitled to a minimum wage, sick or annual leave, or even medical insurance.
- Paying taxes: you still have to pay taxes for the money you make, so make sure to factor that into your budgeting. It’s a good idea to get yourself an accountant who can advise you on your particular circumstances. There are numerous accounts that specialise in assisting gig economy workers.
- Inconsistent income: compared to a traditional full-time job, your pay depends on how much you work. Depending on what your gig is, you may have periods without work because of personal reasons or simply a decrease in demand.
Just like any form of income, if you’re prepared and well-researched, being a gig worker can be very rewarding and provide a better work-life balance than a traditional job.
How can Splend help?
We’re rideshare specialists and you can start earning even if you don’t have a car. We’ll help you get started with a rideshare-ready car on one of our flexible car subscription plans, with dedicated support all the way.
We have over 10,000 drivers across Australia who are now well on their way to success and car ownership, as rideshare or delivery drivers.
Ridesharing isn’t your thing? We don’t mind. You can use your car for gigs on other platforms, and make the best of your time and skills. Whatever your goals, our plans offer flexible options for those who want to take charge of their careers. We’re not about cars, we’re about people.
About Splend
We enable people to make money by driving for on-demand apps such as Uber.
We’re more than a car subscription provider. In addition to new-model cars and all the essentials to start earning money with Uber as quickly as possible, our customers enjoy driver training and dedicated support, as well as customer benefits such as partner discounts and exclusive events.
For more information about Splend, make an appointment and drop by to your local Splend Hub, email us, or say hello on 1800 775 363.
