Gig Economy Platforms & How They’re Helping Small Businesses

Apr 2, 2020

gig economy platforms

The Gig Economy has given businesses the freedom to hire talent on a per/project or deliverable basis by providing the workforce with the ability to work on a contractual basis for projects or gigs. The reason why the gig economy is continuing to thrive is that people have the freedom to work on their terms (i.e. you can set your own hours) and follow multiple career paths. Hence, giving greater flexibility and job opportunities. According to statistics, around 40% of US workers will be participating in a gig as a primary job in 2020. 

The Importance of Gig Economy Platforms

The advent of the gig economy has spurred a need to earn extra money and maintain a better work/life balance. Thus, more and more people today are becoming a part of the gig culture. Millennials form the largest group of independent workers in this fastest-growing segment of the economy. Moreover, Gen-Z has already started earning through freelance jobs.

Technology has also played a very important role and is one of the main reasons why the gig economy is on the rise. Technology is the enabler of the gig and online freelancing trend, making online marketplaces more accessible than any other time in history. Thanks to gig economy apps and websites, it has become very simple and easy for people to find a gig job just from the comfort of their homes. Both business owners and individuals in search of jobs can easily communicate through a gig platform for contractual, freelance, or part-time job agreements. This is a fruitful arrangement for both the employer and workforce as the employer can remotely hire gig workers while the employee can earn extra money. So it is evident that without online gig economy platforms, this market sector would not be where it is today.

Let us take a look at some different gig economy platforms.

Popular Gig Economy Platforms

  • ShiftPixy 

The evolution of the labor force and workplace today has enabled tens of thousands of employers and employees to adopt on-demand work arrangements as it gives them greater flexibility. You can hire remote workers through ShiftPixy for different types of gig economy jobs and save valuable resources such as time, money, and energy. Meanwhile, contingent workers can find reliable and well-paid temporary job opportunities to make extra income. ShiftPixy will be come one of the top gig economy companies, especially in the restaurant and food industries as the pandemic continues to effect how people have changed buying behavior – especially with the use of a food delivery app.

  • Upwork

Upwork is one of the most popular and largest online marketplaces for freelance workers. It has millions of freelancers earning extra income and contains a wide range of job categories. So, whether you are looking for writing jobs or other online opportunities, you can find anyone on Upwork. You have the option to find both short-term gigs and long-term projects on Upwork. Moreover, it allows users to move funds via PayPal, Payoneer, and direct bank transfer.

  • Toptal

Toptal is a bit different from other freelance platforms. Here’s the kicker: it caters to seasoned professionals only. Thus, you will find the top talent here for a fair price. Every freelancer on Toptal is registered after a thorough background check and analysis. The goal of Toptal is to provide a platform for field experts to earn money and deliver their services to businesses. Hence, by setting your own schedule and work conditions, you can earn extra income here alongside a full-time job.

  • Freelancer

Freelancer is yet another popular online platform for temporary work opportunities. It allows users to compete for different job opportunities by sending proposals and bids. Employers can choose to pay via hourly rates or fixed price set for each project. Whether you are looking for writers, graphic designers, IT specialists, or SEO agents, you can find competent and reliable talent here.

  • Guru

Guru is a very useful platform for workers to display and share their projects with prospective clients. Employers can easily pick the right talent by going through their portfolios. From social media management and business consulting to home rentals and vacation rentals, you can find workers for any job sector.

There are of course plenty of driving gig platforms that are ultimately gig economy companies for food delivery, such as Uber eats or Doordash which helps with online grocery delivery or running errands for customers.

How These Platforms Help Small Businesses

The progression of the gig economy has had a huge impact on small businesses and how they operate – more good than bad. While the gig economy benefits small and medium businesses (or SMEs), it has also created a lot of competition among them within their respective market. With that being said, an increasing number of small business models are capitalizing on the gig culture and revolving around technology to become more lucrative. A freelance gig where gig workers earn money based on their own job search and a flexible schedule (think Shiftpixy, Uber and Lyft to name a few) can ultimately connect people who need an immediate service with a ready worker.

Impacts of these platforms on small businesses:

  • On-Demand Labor Force

More and more small businesses are hiring temporary workers to perform different specialized tasks. Recruiting people on freelance or gig basis allow small businesses to attract a wide range of on-demand workforce without committing themselves to long-term employment agreements. And workers appreciate flexible job hours or requirements.

  • Less Cost More Profit 

Temporary workers are independent contractors and freelancers who only need to be paid as and when a job arises. Small businesses only need to pay for the service provided by a gig worker, hence, significant overhead costs are saved; for example, salary, security, benefits, paid time off, office expenditure, taxes, etc. 

  • 24/7 Operations

Gig platforms allow small businesses to create a digital workspace that is free from time and space limitations. Hence, no matter where you are in the world at what time, you can get the job done and your business’s operations running online. Even Amazon Flex has started offering one who delivers packages a more flexible schedule than that of a traditional job.

To conclude, the gig economy has numerous benefits to offer small businesses as well as workers – flexibility, easy communication, and increased productivity to name a few. The new-age labor market has a huge impact on SMBs and their survival in the sharing economy, but by adopting the changing trends of gig culture they will thrive!

Ready to find out how your business can engage and compete in the new labor era? Learn more here!