That’s a tough question to answer, because frankly, no one knows with absolute certainty what the gig economy will look like, 20 years from now. Policy makers have got themselves tied up in knots trying to figure how to draft legislation, that will bring companies like; Uber, Airbnb and Lyft to name a few, in line with traditional businesses. And, therein-lies the issue, because, these companies, are by nature, not traditional in their business model-they were designed to be disruptive and by gosh, that’s exactly what many of them are doing.
In his article, Is The Gig Economy Sustainable, Phil La Duke, contributor to Entrepreneur writes, in part;
“Gigs offer no benefits- Paid time off? Forget it. Sick pay? No way. Paid vacations? In your dreams. I know many of you are thinking — they chose this life? Maybe they did and maybe they didn’t. It doesn’t really matter because the result is the same. This is an issue that threatens more than just the giggers. Consider dentistry. The increasing loss of dental benefits means that many in the gig economy decide to stop going to the dentist or, at the very least, reduce dental visits. Now consider vision coverage and the implications that holds. Dentistry, optometry, pharmacies, tourism — the list goes on, but you get the point.
Gigs replace full-time jobs- A common practice among many larger companies allows a long-term employee to retire on Friday and start work as a consultant doing a gig on the following Monday. The same person doing the same job with no benefits or overhead costs. Instead of backfilling the position, the company simply moves one of its employees into the gig economy.
Gigs are often the result of larger companies outsourcing the most dangerous jobs to individual-. Most individuals lack the resources to acquire proper regulatory training, and what’s more, many small companies are actually exempt from regulatory protections for workers.”
Bottom-line, while we cannot predict the future of the gig economy, we do know that it has affected many traditional business models in ways, many of us never saw coming.
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