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The Gig Economy Is Failing. Say Hello to the Hustle Economy. | by Caitlin Dewey | Jul, 2020

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TThe Covid-19 pandemic crushed vast swaths of the economy, slashing consumer demand, closing businesses, and vaporizing millions of jobs. But it’s been good to the nascent sliver of the digital economy that helps people channel their existing skills into sellable services and products.

Such products range from ebooks and meal plan templates to online classes, podcasts, membership clubs, newsletters, and porn. They proliferate on platforms including Patreon, Twitch, Substack, Etsy, Teachable, Knowable, Podia, Thinkific, Supercast, Lulu, Smashwords, Outschool, OnlyFans, and Gumroad.

These platforms generally take a cut of each sale made, ranging from 5% to 50%, or charge a recurring fee to sellers for accessing their market. Tech investors have dubbed this the “passion economy,” a place where anyone can profit doing what she loves. But because that term risks both exaggerating the payoffs of this work and obscuring its ties to the gig economy, the last great labor “disruption,” we might better call it the “hustle economy:” an online labor market in which platform-dependent workers create and monetize their own digital products. Like Uber drivers or Instacart shoppers, workers in the hustle economy need a platform to succeed. But their work is individualized, self-directed, and on their own schedule — one “creator” can’t substitute for another.

The hustle economy is also not new. Since the late 1990s, tech futurists like the former Wired editor Kevin Kelly have predicted that social networking and online payment platforms would open up a range of new, and newly fulfilling, career choices. Writing in the Harvard Business Review in 1998, the organizational theorist Thomas W. Malone claimed “electronic networks” would dissolve the corporation as the main unit of the economy, and replace it with “flexible, temporary networks of individuals” who self-select their work. The next decade saw dozens of platforms launch with some version of that goal, from Upwork to Etsy and Kickstarter.

In 2017, the economic advisory firm Sonecon estimated that nearly 17 million Americans made some money off digital platforms. And since then, argues Li Jin, a former analyst at the venture capital firm Andreessen Horowitz, a wave of new startups has launched to capitalize on this “model of internet-powered entrepreneurship.”

To Jin, hustle economy platforms represent an opportunity to commoditize a once-worthless or near-worthless resource — think bottled water. Every person on earth has some deep knowledge or experience or skill in something, she argues. If platforms can funnel that into a product that consumers want, then the value of the hustle economy balloons into the hundreds of billions of dollars.

“Anyone with noncommoditized skills can do this,” Jin told OneZero.

For workers, the premise of hustle economy work is equally seductive. Just like gig work, you can choose your own hours. But with the hustle economy, you can really be your own boss, and spend time only on projects you like and feel proud of. While both the gig economy and conventional employment “stripped workers of their autonomy and agency,” Jin said, hustle economy platforms “empower” them. The movement’s rhetoric often, and ironically, echoes Karl Marx: Only liberated workers with control of production can soak up the full spiritual and financial benefits of their labor.

Better yet, in the midst of a protracted economic crisis, hustle economy work offers a safety net — a second income independent of a corporate employer, or even the physical environment. If Patreon and its ilk once promised flexibility or the chance to “do what you love,” they now also promise workers like Amit Levit a paycheck the next crisis can’t interrupt.

Levit, an instructor at Boston’s 305 Fitness, a cardio-dance studio, launched a Patreon in March on the advice of her employer, who couldn’t pay salaries during the shutdown. Though she loves the studio, Levit now plans to keep teaching on Patreon: “I am looking to move toward having two strings of income,” she said, “rather than just the one I had before.”

“People see how fragile their connection to the economy is. Their job could go at any second,” said Len Markidan, the chief marketing officer at Podia, a hustle economy platform that helps its workers set up classes, newsletters, storefronts, and other products. One of its marquee names, the physical therapist Emma Shapiro, has built an empire teaching other health care workers how to create hustles of their own.

In the past three months, Markidan added, “the baseline for this industry accelerated by 10 years.” His company hit benchmarks it didn’t expect to meet until 2026 or 2027. Economists say they’re not surprised by those figures: Workers often flock to “alternative” work during economic downturns.

But if the pandemic also acclimates consumers to new digital products — and new relationships with the workers who make them — then the shift could prove more permanent, said Susan Houseman, a labor economist at the Upjohn Institute for Employment Research.

“This time could be different,” Houseman said. “It’s a temporary crisis, at least until we have herd immunity or a vaccine or some kind of treatment… but the way people do business is going to change. We’re already seeing that.”

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Collaboration in the Gig Economy

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September 18, 2020

Utmost Software Inc. was the judges’ pick among four workforce ecosystem technology startups presenting in a competition styled after the television show Shark Tank on Thursday. The event was part of the Collaboration in the Gig Economy virtual conference bringing together staffing firms, buyers and HR tech.

All four finalists were chosen from a number of firms to present before a panel of four judges, who picked their top startup.

Utmost provides software that enables enterprise firms to track their extended workforces, which include contingent workers, consultants, contractors and freelancers, among others. Unlike VMS providers, which are typically supplier-paid, the company has a set pricing model that is paid by enterprise firms themselves.

Utmost is also native to Workday and focuses exclusively on Workday customers. In addition, Workday is an investor in the company and Utmost co-founder and COO Dan Beck himself comes from Workday.

That relationship was one thing that caught judges’ attention.

“I like the business, it’s got a built-in customer base,” said Jai Shekhawat, one of the Shark judges. Shekhawat is also founder and former CEO of SAP Fieldglass. However, he did question why Utmost chose its pricing model when enterprise firms are more accustomed to the VMS supplier-paid model.

“I think he has a bright future ahead of him; not easy, but I wish him all the best,” Shekhawat said.

Timing, thoughtfulness and focus were also cited by the other three judges:

  • “Although there was something timely in everything we saw today, Utmost, in particular, I think is really timely to what enterprise customers, HR executives, hiring managers are trying to solve right now,” said Rebecca Henderson, CEO and executive board member at Randstad nv.
  • “All of the startups were really interesting,” said Pete Flint, managing partner of NFX, a venture capital firm. “Utmost stood out, just their thoughtfulness, their experience, their distribution; I think that really stood out. This is a terrific opportunity; it’s a burning need for many enterprises.”
  • “The criteria of innovation, market opportunity and the quality of the presentations made it really tough because some may be more innovative than others and some might have a bigger market opportunity,” said Gary Swart, partner at Polaris Partners, an investment firm. “I think Dan’s focus was a differentiator. The fact that there is not only an innovative solution but a focused go-to-market, not trying to boil the ocean and tackle too much.”

The other finalists presenting to the Shark Tank panel were:

  • Emma El-Karout, founder and CEO of One Circle, a digital community of on-demand HR freelancers.
  • Matthew Mottola, co-founder and CEO of Venture L. The company is described as a Shopify for running freelance businesses that enables freelancers to scale their operations.
  • Alexander Torrenegra, CEO of Torre, a professional network that is friendly for both knowledge workers and blue-collar workers that uses programmatic automatic matching for jobs.

The Collaboration in the Gig Economy Conference ends today.

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Despite economic slowdown, Pakistan’s gig economy continues to shine – Business Recorder

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Gig economy saves Australia’s jobs market, but at what cost?

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Don’t be surprised if employers use the recession to employ more casuals and outsource more work.

(Image: Adobe)

There were three messages in the confusing jobs data for August that emerged yesterday from the Australian Bureau of Statistics. The headline number was dramatically better than any economist, or even the Reserve Bank or Treasury, had predicted.

The first is, despite the claims from the media and the Morrison government that the Andrews government’s lockdown was some profound act of economic vandalism, Victoria’s jobless rate only moved up to 7.1% from 6.8%, with 42,000 jobs lost in that state last month. Hours fell by 4.8% in Victoria, compared with a 1.8% rise across the rest of Australia.

Now there may well be another big fall in Victoria in the September data as the numbers catch up. There will be a clue in the ABS’s next payroll jobs and wages data next week.



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