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DISPATCHES FROM THE NEW ECONOMY:
THE ON-DEMAND
WORKFORCESECOND ANNUAL REPORT, FEBRUARY 21, 2017
$
+
From delivery, transportation and household errands, to professional
services and consulting, the on-demand economy is not only changing
the way people consume goods and services, it’s also changing the way
millions of Americans work. With incredible flexibility and stunning
ease-of-entry, this new economy is empowering a new generation of
entrepreneurs. In an updated forecast by Intuit and Emergent Research,
the number of people working on-demand jobs will grow from
3.9 million Americans to 7.7 million in 2020, and an impressive
9.2 million by 2021.
In 2015, Intuit kicked-off a research project in partnership with Emergent
Research and eleven on-demand economy and online talent marketplace
companies to gain a deep and objective understanding of the motivations,
aspirations and pain points of individuals choosing on-demand jobs. In the
latest study, new findings reveal that the on-demand economy has taken on
a key role in improving the financial stability of people looking for flexible
opportunities to supplement income.
INTRODUCTION
1
METHODOLOGY
For this study we surveyed 6,247 people who find work via an on-demand
platform that connects service providers with customers.
People working via the following platforms
are included in this report:
• Amazon Mechanical Turk, Avvo,
Catalant, Field Nation, Kelly Services,
Lyft, MBO Partners, OnForce,
TaskRabbit, Upwork, Wonolo,
Work Market
Results weighted to reflect the proportion
of providers in each of the following
segments:
• Drivers/Delivery
• Online Talent Marketplaces
• Field Service/Onsite Talent
The overall 2016 results are statistically consistent with the 2015 results.
2
EXECUTIVE SUMMARY
People engaged in on-demand work are looking for flexible opportunities to smooth out
unpredictable income, while also testing ways to build a secure financial future:
• On-Demand Work is Used to Supplement Existing Income: The average person
working an on-demand job spends 11 hours per week, and earns 24 percent of their
household income via on-demand work. Forty-one percent also have a traditional
full-or part-time job.
• On-Demand Work Fills Near-Term Financial Needs: Sixty-six percent of people
working on-demand report having variable monthly income. Forty-one percent say
that a financial hardship – such as a job loss, medical problem, or unexpected major
expense – impacted them during the prior year. By contrast, just 18 percent of all
Americans in a recent U.S. Federal Reserve survey reported encountering a
financial emergency.
• On-Demand Work Is Used To Build A Sustainable Future: Many people are
leaning on on-demand economy work to either develop a new business or
supplement and expand an existing business Thirty-seven percent already own
a business, and 21 percent want to build a business.
• There is General Satisfaction With On-Demand Work: 38 percent of people
working in the on-demand economy say they are better off, while only 14 percent
feel they are worse off. Eighty-one percent plan to continue working an on-demand
job over the next 12 months, and 67 percent of people are satisfied with their
on-demand work.
!
3
REASONS FOR WORKING IN THE
ON-DEMAND ECONOMY
Want to try something new
57%
Want to earn more money/
supplemental income
46%
Want to create
and control my
own schedule
35%
Want greater
work/life
flexibility
32%
Want to
be my
own boss
32%
Want to make up for
a financial hardship
21%
Want another source of income
while looking for work
19%
4
On-demand economy providers report working an average of 37.3 hours per week with
about 11 hours per week working for their primary on-demand economy partner
of on-demand economy
providers have either a
traditional full-time job (27%)
or part-time job (14%) in
addition to their on-demand
economy work
41%
33% Work with another on-demand service provider that connects me with customers
26% Employed in a traditional full-time job (receive a W-2)
26% Run my own business and have no employees
19% Care for my family
14% Employed in one or more traditional part-time jobs (receive a W-2)
13% Sell goods in online marketplaces
11% Run my own business and have at least one employee or partner besides myself
9% Full- or part-time student
5% Work through a temporary or talent agency
5% Retired
5% No other sources of income
Additional Activities Workers Currently Engage In
ON-DEMAND ECONOMY PROVIDER INCOME
5
24%
ON-DEMAND ECONOMY PROVIDER INCOME
The average gross income from an on-demand
economy provider over the past 12 months is $12,100.
Average percentage of household income
generated by on-demand work
$ $ $ $
Reported hourly earnings ranged from $5 to $61 with an average of
!
6
20%
36%
26%29%
Top Hardships On-demand work has improved the financial position for many
on-demand economy providers
Much better off
Somewhat better off
About the same
Somewhat worse off
Much worse off
9%
29%
48%
10%
4%
1 in 5 turned to on-demand work due to a financial hardship.
• 41% reported experiencing a financial hardship over the past year
• 51% said the financial hardship was the primary reason (19%) they are working
independently or one of the reasons (32%)
31%
Unexpected Major
Expense
Job
Loss
Health
Emergency
Work Hours
Cut
Almost one third of online on-demand economy providers who
also have full-time jobs say they see their on-demand work as a
backup in case something happens to their regular job
Many people are turning to flexible on-demand work to weather financial challenges, such as:
ON-DEMAND ECONOMY IMPROVES
FINANCIAL STABILITY
7
Highly variable income
Income varies quite a bit month to month and is unpredictable
Income varies quite a bit month to month but is predictable
Income roughly the same but some months unusually high or low
Income more or less stable
24%
14%
28%
34%
Limited financial reserves
44%
34%
Said the largest emergency expense they could pay
without borrowing was less than $400
Have No Retirement Savings
Lack of health coverage
24%
26%
Do not have health insurance
Did not get medical treatment during the past year
because they couldn’t afford it
Many people are turning to flexible on-demand work to weather
financial challenges, such as:
ON-DEMAND ECONOMY IMPROVES
FINANCIAL STABILITY
8
BUILDING A BUSINESS IN THE ON-DEMAND ECONOMY
37% own a business
21% want to build a business
!
I always wanted to be my own boss
I do not like having to answer to a boss
I will not go back to relying solely on a traditional job
Previous employers have not recognized the value I offered
I would rather hava a traditional job than be my own boss
Strongly / Somewhat agree Neutral Strongly / Somewhat disagree
20%71% 9%
30%53% 17%
25%50% 25%
24%47% 29%
24%15% 61%
Many have a desire to run their own business or be their own boss, and are leaning on
on-demand economy work to either develop a new business or supplement or expand
an existing business.
9
SATISFACTION AND RELATED ATTITUDES
50%
Highly Satisfied
17%
Satisfied
23%
Dissatisfied
like controlling when, where
and how they work.91%
On-demand economy providers report being happier and enjoying
the flexibility of their on-demand jobs.
10
11
ON-DEMAND ECONOMY PROVIDER CHALLENGES
62%
53%
41%
Getting enough work
Unpredictable income
Unfair pay
The growing number of workers
providing the same service
Lack of job security
Lack of benefits/health insurance
Top Challenges
31%
27%
21%
36%
Probably
3%
Probably Not
45%
Definitely
15%
Might/Might Not
81%
would like to
continue working in the
on-demand economy
47%
would like to
increase their work
34%
would like to keep
their work the same
+
=
FUTURE PLANS
Will on-demand economy providers continue working with their primary
on-demand economy partner 12 months from now?
?
12
ON-DEMAND ECONOMY PROVIDER DEMOGRAPHICS
Men
White African American Hispanic Asian/Pacific Islander /
Indian sub-continent
Other
Women59%
64% 11% 9%7%
41%
Gender
Marital Status
Age
Education
Ethnicity
42 40Average (years)
Children/grandchildren in household
Median (years)
34%
Married
Not married and not living w/partner
Not married, but living w/partner
Divorced
Separated
Widowed
Millennials: Aged 18-34
Gen X: Aged 35-51
Baby Boomers: Aged 52-68
Seniors: Aged 69+
High school or less
High school degree / GED
Some college or 2-year degree
4-year college degree
Graduate or professional degree
Other
47%
24%
12%
9%
2%
1%
35%
41%
24%
1%
1%
7%
30%
31%
28%
2%
10%
13
CONCLUSION
The on-demand economy is accelerating the move toward self-employment and is having a
transformative effect not only on our economy, but also on the way millions of Americans live.
At Intuit, we're committed to empowering people to take advantage of the positive opportunities
the on-demand economy provides. We're also committed to building new tools and supports to
deliver stability for the growing self-employed workforce.
It’s time to look ahead with an informed and productive discussion about the future of work.

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Dispatches From the New Economy: The On-Demand Workforce

  • 1. DISPATCHES FROM THE NEW ECONOMY: THE ON-DEMAND WORKFORCESECOND ANNUAL REPORT, FEBRUARY 21, 2017 $ +
  • 2. From delivery, transportation and household errands, to professional services and consulting, the on-demand economy is not only changing the way people consume goods and services, it’s also changing the way millions of Americans work. With incredible flexibility and stunning ease-of-entry, this new economy is empowering a new generation of entrepreneurs. In an updated forecast by Intuit and Emergent Research, the number of people working on-demand jobs will grow from 3.9 million Americans to 7.7 million in 2020, and an impressive 9.2 million by 2021. In 2015, Intuit kicked-off a research project in partnership with Emergent Research and eleven on-demand economy and online talent marketplace companies to gain a deep and objective understanding of the motivations, aspirations and pain points of individuals choosing on-demand jobs. In the latest study, new findings reveal that the on-demand economy has taken on a key role in improving the financial stability of people looking for flexible opportunities to supplement income. INTRODUCTION 1
  • 3. METHODOLOGY For this study we surveyed 6,247 people who find work via an on-demand platform that connects service providers with customers. People working via the following platforms are included in this report: • Amazon Mechanical Turk, Avvo, Catalant, Field Nation, Kelly Services, Lyft, MBO Partners, OnForce, TaskRabbit, Upwork, Wonolo, Work Market Results weighted to reflect the proportion of providers in each of the following segments: • Drivers/Delivery • Online Talent Marketplaces • Field Service/Onsite Talent The overall 2016 results are statistically consistent with the 2015 results. 2
  • 4. EXECUTIVE SUMMARY People engaged in on-demand work are looking for flexible opportunities to smooth out unpredictable income, while also testing ways to build a secure financial future: • On-Demand Work is Used to Supplement Existing Income: The average person working an on-demand job spends 11 hours per week, and earns 24 percent of their household income via on-demand work. Forty-one percent also have a traditional full-or part-time job. • On-Demand Work Fills Near-Term Financial Needs: Sixty-six percent of people working on-demand report having variable monthly income. Forty-one percent say that a financial hardship – such as a job loss, medical problem, or unexpected major expense – impacted them during the prior year. By contrast, just 18 percent of all Americans in a recent U.S. Federal Reserve survey reported encountering a financial emergency. • On-Demand Work Is Used To Build A Sustainable Future: Many people are leaning on on-demand economy work to either develop a new business or supplement and expand an existing business Thirty-seven percent already own a business, and 21 percent want to build a business. • There is General Satisfaction With On-Demand Work: 38 percent of people working in the on-demand economy say they are better off, while only 14 percent feel they are worse off. Eighty-one percent plan to continue working an on-demand job over the next 12 months, and 67 percent of people are satisfied with their on-demand work. ! 3
  • 5. REASONS FOR WORKING IN THE ON-DEMAND ECONOMY Want to try something new 57% Want to earn more money/ supplemental income 46% Want to create and control my own schedule 35% Want greater work/life flexibility 32% Want to be my own boss 32% Want to make up for a financial hardship 21% Want another source of income while looking for work 19% 4
  • 6. On-demand economy providers report working an average of 37.3 hours per week with about 11 hours per week working for their primary on-demand economy partner of on-demand economy providers have either a traditional full-time job (27%) or part-time job (14%) in addition to their on-demand economy work 41% 33% Work with another on-demand service provider that connects me with customers 26% Employed in a traditional full-time job (receive a W-2) 26% Run my own business and have no employees 19% Care for my family 14% Employed in one or more traditional part-time jobs (receive a W-2) 13% Sell goods in online marketplaces 11% Run my own business and have at least one employee or partner besides myself 9% Full- or part-time student 5% Work through a temporary or talent agency 5% Retired 5% No other sources of income Additional Activities Workers Currently Engage In ON-DEMAND ECONOMY PROVIDER INCOME 5
  • 7. 24% ON-DEMAND ECONOMY PROVIDER INCOME The average gross income from an on-demand economy provider over the past 12 months is $12,100. Average percentage of household income generated by on-demand work $ $ $ $ Reported hourly earnings ranged from $5 to $61 with an average of ! 6
  • 8. 20% 36% 26%29% Top Hardships On-demand work has improved the financial position for many on-demand economy providers Much better off Somewhat better off About the same Somewhat worse off Much worse off 9% 29% 48% 10% 4% 1 in 5 turned to on-demand work due to a financial hardship. • 41% reported experiencing a financial hardship over the past year • 51% said the financial hardship was the primary reason (19%) they are working independently or one of the reasons (32%) 31% Unexpected Major Expense Job Loss Health Emergency Work Hours Cut Almost one third of online on-demand economy providers who also have full-time jobs say they see their on-demand work as a backup in case something happens to their regular job Many people are turning to flexible on-demand work to weather financial challenges, such as: ON-DEMAND ECONOMY IMPROVES FINANCIAL STABILITY 7
  • 9. Highly variable income Income varies quite a bit month to month and is unpredictable Income varies quite a bit month to month but is predictable Income roughly the same but some months unusually high or low Income more or less stable 24% 14% 28% 34% Limited financial reserves 44% 34% Said the largest emergency expense they could pay without borrowing was less than $400 Have No Retirement Savings Lack of health coverage 24% 26% Do not have health insurance Did not get medical treatment during the past year because they couldn’t afford it Many people are turning to flexible on-demand work to weather financial challenges, such as: ON-DEMAND ECONOMY IMPROVES FINANCIAL STABILITY 8
  • 10. BUILDING A BUSINESS IN THE ON-DEMAND ECONOMY 37% own a business 21% want to build a business ! I always wanted to be my own boss I do not like having to answer to a boss I will not go back to relying solely on a traditional job Previous employers have not recognized the value I offered I would rather hava a traditional job than be my own boss Strongly / Somewhat agree Neutral Strongly / Somewhat disagree 20%71% 9% 30%53% 17% 25%50% 25% 24%47% 29% 24%15% 61% Many have a desire to run their own business or be their own boss, and are leaning on on-demand economy work to either develop a new business or supplement or expand an existing business. 9
  • 11. SATISFACTION AND RELATED ATTITUDES 50% Highly Satisfied 17% Satisfied 23% Dissatisfied like controlling when, where and how they work.91% On-demand economy providers report being happier and enjoying the flexibility of their on-demand jobs. 10
  • 12. 11 ON-DEMAND ECONOMY PROVIDER CHALLENGES 62% 53% 41% Getting enough work Unpredictable income Unfair pay The growing number of workers providing the same service Lack of job security Lack of benefits/health insurance Top Challenges 31% 27% 21%
  • 13. 36% Probably 3% Probably Not 45% Definitely 15% Might/Might Not 81% would like to continue working in the on-demand economy 47% would like to increase their work 34% would like to keep their work the same + = FUTURE PLANS Will on-demand economy providers continue working with their primary on-demand economy partner 12 months from now? ? 12
  • 14. ON-DEMAND ECONOMY PROVIDER DEMOGRAPHICS Men White African American Hispanic Asian/Pacific Islander / Indian sub-continent Other Women59% 64% 11% 9%7% 41% Gender Marital Status Age Education Ethnicity 42 40Average (years) Children/grandchildren in household Median (years) 34% Married Not married and not living w/partner Not married, but living w/partner Divorced Separated Widowed Millennials: Aged 18-34 Gen X: Aged 35-51 Baby Boomers: Aged 52-68 Seniors: Aged 69+ High school or less High school degree / GED Some college or 2-year degree 4-year college degree Graduate or professional degree Other 47% 24% 12% 9% 2% 1% 35% 41% 24% 1% 1% 7% 30% 31% 28% 2% 10% 13
  • 15. CONCLUSION The on-demand economy is accelerating the move toward self-employment and is having a transformative effect not only on our economy, but also on the way millions of Americans live. At Intuit, we're committed to empowering people to take advantage of the positive opportunities the on-demand economy provides. We're also committed to building new tools and supports to deliver stability for the growing self-employed workforce. It’s time to look ahead with an informed and productive discussion about the future of work.