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Which Stocks are Beneficiaries of the Gig-Economy?

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In 2020 we saw monumental shifts to remote-working, which also triggered a surge in gig opportunities, thanks to work schedule flexibility. This is disrupting several industries, with themes like mobility and the connected economy facilitating the change. I take a look at the evolving gig economy, and the stocks set to benefit from its success.

What is a gig economy?

A gig economy is a free market system in which temporary positions are common and organisations hire independent workers for short-term commitments to suit the needs of their business. As its name suggests, it was historically used in the arts industry, with reference to musicians’ gigs, but has now spread across other industries such as Information Technology, Media, Construction, and Transportation.

The gig economy and WFH

The increased popularity of technology platforms has facilitated easier transactions, transparency, and payments in the gig economy. Gig workers tend to be divided into two categories: service providers and goods suppliers. Early in 2020, ADP estimated the share of independent workers in the US stood at 16%, a fifteen percent jump from 2010, with more than six million additional gig workers today than a decade ago. The US Bureau of Labor Statistics (BLS) projects there will be 10.3 million self-employed workers by 2026, growing at a 7.9% CAGR.

The Freelancing in America 2020 report estimates more than 1/3 of the American workforce freelances, contributing $1.2trn to the US economy, a 22% rise from 2019 with an influx of younger, highly skilled professionals seeking flexible alternatives to traditional employment. As remote work gains in popularity, businesses can advertise freelancing gigs as a cost efficient way to find highly skilled workers without the need to provide full employment and the associated benefits. 

 

 

The BLS also shows non-employer business applications are skyrocketing, which points to more freelancing.

 

 

Gig workers

This new era of employment is resulting in substantial growth for several companies. Tim Robbins, VP of staffing and recruiting at Monster, believes that the pandemic-fuelled trend of using temporary workers to handle ebbs and flows in demand will continue well into 2021 — especially in certain industries.

“There’s been a strategic shift happening where employers competing in the war for skilled talent have accelerated their adoption of contingent labor,” he says. Recent research from Intuit forecasts that, by 2021, the gig economy will surge, resulting in 9.2 million Americans joining the gig workforce.

According to The Millennial Economy Report, 44% of Millennials have a side hustle to make extra cash. Intuit laid out the growing trend of self-employment amongst US workers. For 53% of casual workers aged 18-34, their work in the gig economy is their primary source of income.

The gig economy’s primary headwind is legislative, with workers’ rights to healthcare, sick leave and other benefits in focus. Having to provide these by law could increase costs and minimise the incentive for firms to hire freelance workers. McKinsey & Co. estimates that, by 2025, online talent platforms could add $2.7trn to global GDP.

 

 

The gig economy and businesses

Many of the companies seen to benefit from the gig economy are included in my Future of Work, Direct-to-Consumer and FinTech Signature Share Baskets. Freelancing is in the early stages of online penetration, with most activity still happening offline to find gig jobs.

Upwork [UPWK] and Fiverr [FVRR] are the two leading freelance platforms and each is in the nascent stages of opportunity, seeing significant growth.

 

 

Other key stocks that tie into the gig economy theme include Airbnb [ABNB] in hospitality, Etsy [ETSY] and Shopify [SHOP] retail platforms, Uber [UBER], Lyft [LYFT] and Doordash [DASH] for ride-hailing and mobility services, and Angie’s [ANGI] as a platform for providing at-home care services. Direct-selling companies like Nu-Skin [NUS] and Medifast [MED] also create gig jobs.

There are beneficiaries on the financial side, too, with platforms such as Square [SQ], PayPal [PYPL], Visa [V] and Ceridian [CDAY] providing easy modes of payment to gig workers. Intuit [INTU] and Avalara [AVLR], as providers of tax software, also benefit from the rise of the entrepreneurial society. Green Dot [GDOT] recently invested in a fast-growing company Gig Wage, which is focused on creating a better financial ecosystem for the rapidly expanding gig economy. HCM Software names like Workday [WDAY], Paycom [PAYC], Paylocity [PCTY] and Automatic Data [ADP] are also seeing a resultant demand for services. 

At a NASDAQ Conference in December, Intuit discussed the opportunity for QuickBooks Advanced in the gig economy:

“We now can serve service-based businesses, which is the majority of the market, and we serve product-based businesses. We can disrupt from the bottom with QuickBooks Cash, where you don’t really need to worry about accounting at all, and eventually, we do it for you. …  It gives us an opportunity to provide a lot more services that have far higher ARPU, and we actually have a very disruptive price compared to the alternative. And so we’re very well positioned to serve this market.”

At the Citi Financial conference in November, Visa discussed the surging demand for on-demand payroll due to the gig economy and their Visa Direct platform. Visa Direct is designed for B2C, P2P, some small-ticket B2B transactions and even G2C (government to consumer) payments.

“So, fundamentally, it’s a vast expansion of what we as a business can do.  We are going into more and more use cases. So just to give you an idea of some of the big use cases. … We’re seeing significant growth in on-demand payroll as well as payments to gig economy workers. So, while payments to Uber drivers may have gone down, we’re seeing a big increase in delivery drivers right now in terms of disbursements. … These are early days in Visa Direct. I mean the opportunity is vast.”

 

“We’re seeing significant growth in on-demand payroll as well as payments to gig economy workers” – Visa

 

ANGI HomeServices’ special call in July also discussed the gig economy: “There’s a lot of opportunities for the on-demand economy, the gig economy for us to be able to do gigs and other opportunities for just the instant payments of that. … And we have seen a seismic shift happening, really accelerated by the COVID environment from [finding] off-line recommendations for childcare and senior care into online, and we are the de facto platform to come and make those matches.

“So we see that the 2 core tenet verticals, so to speak, childcare and senior care, are rich of opportunity, but there’s also opportunities to go into adjacencies such as pet care, as you mentioned. And the technology is built in a way in order to service that. We’re in pet care today, but we can continue to tackle that market and go deeper there. And on the first question, what I’d say is when we look at the overall landscape, there’s a real opportunity for us to continue to grow and go into the penetration of that TAM. And so we’re barely scratching the surface. I like to say to a lot of people we haven’t even left the dugout yet. We’re not even in the bottom of the first, so we’ve got a ton of room for us to scale and to grow.”

In closing, the longer-term trend towards a more flexible labour market will continue to drive excellent growth across gig economy platform providers, as well as payment and HCM software providers. This theme is a massive opportunity in the early stages digitalisation, much like ecommerce over five years ago. I expect that these stocks will continue to perform well given the positive backdrop. 

Disclaimer Past performance is not a reliable indicator of future results.

CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.

The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although we are not specifically prevented from dealing before providing this material, we do not seek to take advantage of the material prior to its dissemination.

CMC Markets does not endorse or offer opinion on the trading strategies used by the author. Their trading strategies do not guarantee any return and CMC Markets shall not be held responsible for any loss that you may incur, either directly or indirectly, arising from any investment based on any information contained herein.

*Tax treatment depends on individual circumstances and can change or may differ in a jurisdiction other than the UK.

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Postmates the latest gig company to add Prop. 22 fees

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Postmates is the latest gig company to slap customers with fees to pay for Proposition 22, the measure that keeps gig workers as independent contractors.

Gig companies including Postmates, Uber, Lyft, DoorDash and Instacart ponied up $220 million to push Prop. 22, which allows them to circumvent a California law that could turn their workers into employees. Prop. 22, which voters passed by 58% to 42% in November, includes some health care benefits for drivers and couriers who put in enough hours, provides accident insurance, and guarantees 120% of minimum wage plus 30 cents a mile while workers are going to or fulfilling a ride or delivery request.

The gig companies told voters that prices would rise if Prop. 22 did not pass. But all of Prop. 22’s backers except for Instacart have now hiked prices to help pay for Prop. 22’s new promises.

Postmates said its fees vary by market and range from 50 cents to $2.50 throughout the state, “averaging around $2 in the Bay Area.” By placing orders in various cities, The Chronicle could see that Postmates is charging a “CA Driver Benefits” fee of $2 in San Francisco and $2.50 in both San Jose and Oakland.

Postmates’ website explains that the fee helps fund the Prop. 22 benefits. Postmates is now owned by Uber, which runs the new acquisition as a separate service.



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The Sweetest Gig is Hiring Mitzvah Team ‘Kids Write Chocolate Reviews in Hebrew’

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Join The Mitzvah Team to Taste World's Best Chocolate and Write Creative Reviews in Hebrew at The Sweetest Gig #thesweetestgig #mitzvahteam #hebrew www.TheMitzvahTeam.com

Join The Mitzvah Team to Taste World’s Best Chocolate and Write Creative Reviews in Hebrew at The Sweetest Gig #thesweetestgig #mitzvahteam #hebrew www.TheMitzvahTeam.com

Our High Purpose Kid Love Work Program is a Rewarding Experience Specially Suited for Grateful Professional Working Families that Love Preparing Their Kids to Succeed in Life #thesweetestgig www.TheSweetestGig.com

Our High Purpose Kid Love Work Program is a Rewarding Experience Specially Suited for Grateful Professional Working Families that Love Preparing Their Kids to Succeed in Life #thesweetestgig www.TheSweetestGig.com

The Sweetest Gig Preparing Kids for Life #thesweetestgig #kidslovework #kidsearnperks www.TheSweetestPerk.com

The Sweetest Gig Preparing Kids for Life #thesweetestgig #kidslovework #kidsearnperks www.TheSweetestPerk.com

The Sweetest Gig is a fun meaningful weekend work program teaching kids skills. Kids are hired to taste the world’s best Chocolate and write creative reviews.

Inspire Your Kids to Join The Mitzvah Team…We’re Making Learning Hebrew Fun, and Sweet.”

— Carlos Cymerman, Fun Advocate+Founder, The Sweetest Gig

SANTA MONICA, CA, UNITED STATES, January 19, 2021 /EINPresswire.com/ — Recruiting for Good (R4G) is a staffing agency helping companies find talented professionals and generating proceeds to fund The Sweetest Gig (preparing kids for life).

On The Sweetest Gig, Middle School kids are hired to taste The World’s Best Chocolate, write creative reviews, and earn fun perks. Kids who join The Mitzvah Team write reviews in Hebrew.

Kids that complete 3 successful reviews between February and April, 2021; earn mom gift (a box of fine chocolate, home delivered for Mother’s Day).

According to Recruiting for Good and The Sweetest Gig, Founder, Carlos Cymerman, “The Sweetest Gig is a mitzvah. We’re preparing kids for life by teaching that anything meaningful, rewarding, and worthwhile; takes time and effort.”

How Parents Help Their Kids Land The Gig

The Sweetest Gig is a high purpose work program for grateful working professional families that make a difference in LA.

One parent needs to be fluent in English; email Sara(at)TheSweetestGig(dot)com to make an appointment and speak with Carlos, the Founder.

Kids attend Middle School in LA and learned Hebrew in the US (Hebrew School or Jewish Day School).

Kids that desire to earn Mother’s Day gift; need to land gig by February 9th, 2021 (hiring just 25 kids).

Carlos Cymerman, adds, “Parents contact me today to help your kids land The Gig….We’re making learning Hebrew; fun, and sweet.”

About

Before launching staffing agency, Recruiting for Good, Founder, Carlos Cymerman worked as a teacher for 10 years during and after college. And Recruiting for Good has been sponsoring creative writing contests for the last 10 years (for adults and kids). In 2014, he created and sponsored a creative writing program at Olympic High School in Santa Monica.

The Sweetest Gig is a rewarding ‘Kid Love Work’ program; especially suited for ‘Grateful Working Professional Families’ that love preparing their kids to succeed in life. Sweet Creative Middle School Kids are hired on weekends to taste The World’s Best Chocolate, write creative reviews, and earn fun perks. The Sweetest Gig is created by Carlos Cymerman, and sponsored by Recruiting for Good. “Kids learn that anything meaningful, rewarding, and worthwhile; takes time, and effort.” www.TheSweetestGig.com

Summer Camp May Not Be Back…The Sweetest Gig Will Be… “Sweet Love Festival.” Fun Creative Summer 2021!

Since 1998, Recruiting for Good has been a purpose driven staffing company. Companies retain our recruiting agency to find talented and value driven professionals who love to use their talent for good in Accounting/Finance, Engineering, Information Technology, Marketing, Operations, and Sales. www.RecruitingforGood.com. R4G is on a fun mission; preparing kids for life to succeed thru ‘The Sweetest Gig,’ fun love work program.

Recruiting for Good Created The Goodie Foodie Club whose purpose is to help fund ‘The Sweetest Gig’ so more kids can learn to love work and prepare for life. Participate in our meaningful Referral Reward Program today to Enjoy The Sweetest Rewards (12 Months of Sushi, or 12 Months The Finest Chocolate Delivered to Mom). www.TheGoodieFoodieClub.com

Carlos Cymerman
Recruiting for Good
+1 310-720-8324
email us here
Visit us on social media:
Facebook
Twitter
LinkedIn



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Fugro wins Suedlink Section 2 gig – reNews

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Fugro has won a multidisciplinary contract on Germany’s SuedLink renewables powerline, which will transport electricity generated by offshore wind in the north of Germany to the south.

Vossing Engineers awarded Fugro a geotechnical and water consulting contract to support the route planning, permitting and installation of 106 km of underground power cables on Section 2 of Germany’s new Suedlink powerline.

The entire 700 km cable is due to be completed by 2028 and will be the country’s largest energy infrastructure project when completed.

Fugro‘s multidisciplinary consultancy services on the project include site investigation supervision, hydrogeological expertise and environmental support.

Vossing Engineers will then use Fugro’s geo-data acquisition, and ground and environmental risk mitigation advice, to optimise the cable route layout to “reduce costs, accelerate the schedule and ensure the successful implementation” of Section 2.

Vossing project director Wido Schmidt-Heck said: “Vossing’s challenge on Section 2 of the Suedlink project is to combine approximately 150 staff from different companies into one exploration, design and permitting team.

“This consultancy contract with Fugro facilitates that strategic cooperation and we look forward to a successful delivery.”

Fugro project manager Dirk Brinschwitz said: “I am proud to be managing this important energy transition project.

“At Fugro, our knowledge and services are the foundation of the carbon-neutral and safe energy supplies contributing to a safe and liveable world. Our comprehensive consulting package, which allowed Vossing to form a single multidisciplinary team, was a major factor in Fugro winning this contract award.”

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