The document discusses the gig economy and its characteristics. It defines the gig economy as online platforms that connect workers and customers for specific tasks, with payment intermediated by the platforms. The gig economy provides benefits like flexibility but also drawbacks like lack of protections. While it empowers some groups, there is an imbalance in distributing its benefits, with workers being more vulnerable. Both incumbents and regulations need to adapt to the changes brought by the new digital economy.

1. THE GIG ECONOMY
AND THE FUTURE OF WORK
NATHALIA MAGANHA

2. THE GIG
ECONOMY WORK TRANSACTED
THROUGH DIGITAL
PLATFORMS
DEFINITION:THE GIG
ECONOMY

3. THE GIG ECONOMY AND THE FUTURE OF WORK
CHARACTERISTICS
Online
platforms
connect
workers and
customers
The payment is
intermediated
by the
platforms
Users work
whenever they
want
A rate is paid
for a specific
task

4. THE GIG ECONOMY AND THE FUTURE OF WORK
WHO CAN BENEFIT FROM IT?
This formula is generating significant benefits for entrepreneurs
from different industries.
Did you know? Uber became the fastest-growing startup in all
history, and today it is already higher valued than Ford or General
Motors.
CONSUMERS
WORKERS
ENTREPRENEURS
The gig economy is democratising the access to many types of
services, making them more affordable and highly efficient.
Workers see the platforms as alternatives to generate income at
convenient and flexible dynamics.

5. DO NOT MIX IT WITH THE SHARING
ECONOMY.
THE GIG ECONOMY AND THE FUTURE OF WORK
▸ Online platforms where work can be
transacted
‣ Examples:
‣ Drivers can connect to Uber to offer rides
‣ People with specific skills can connect to
Fiverr to offer any service in their area of
knowledge
THE GIG ECONOMY VS
▸ Systems that facilitate the sharing of
underused assets
‣ Examples:
‣ Blablacar connects travellers with
drivers with empty seats
‣ Airbnb connects people looking for
accommodation with those with spare
rooms or underused properties
THE SHARING ECONOMY

6. THE GIG ECONOMY AND THE FUTURE OF WORK
BUT THEY DO HAVE THINGS IN COMMON.
✓ TRUST SYSTEMS
Reputation is a fundamental aspect for building relations in a collaborative consumption. In
a recent survey about the sharing economy, 69% of the interviewees said that they would
not believe in sharing economy companies until they were recommended by someone
they trust.
✓ CRITICAL MASS
In order to have that, early adopters have create a critical mass for social proof, enabling
others to overcome psychological barriers related to new behaviours. Also, only with a wide
range of choices consumers will feel satisfied, enabling collaborative consumption to
compete with conventional platforms.
✴ Example: Uber Pool
This specific service from Uber allow passengers to share the rides with others going to the
same direction. It combines the essence of the gig economy (the driver working through
the platform) and the essence of the sharing economy (passengers sharing empty seats).

7. ANALYSIS

8. FREELANCING IS BOOMING
of the
Americans
participated
in some sort
of freelancing
in 2015
of British
freelancers see
their roles as
long-term
34% 40%of the total
American
workforce is
expected to
participate of
some sort of
freelancing as
of 2020
THE GIG ECONOMY AND THE FUTURE OF WORK
3/478%of the
freelancers
would
recommend
it to friends
and family

9. SNAPSHOT OF THE GIG ECONOMY
of the
working-age
population
participates
in the gig
economy
today
>1% 2/3is what Uber
represents in
the Gig
Economy, being
considered a
“quintessential”
employer for
gig work
THE GIG ECONOMY AND THE FUTURE OF WORK
$1.3is what the gig
economy can
inject in the
global economy
as of 2025,
according to
McKinsey and
Company
trillion per year

10. THE GIG ECONOMY AND THE FUTURE OF WORK
THE UPSIDE OF THE GIG ECONOMY
✓ FLEXIBILITY AND FREEDOM
The gig economy allows workers to have their own schedules, work from anywhere
and pick only projects of their interest.
✓ MOBILITY
By spending less time with displacements, people have more time to focus in activities
that really matter, relieving the traffic and polluting less.
✓ GLOBAL PRODUCTIVITY
By putting the right people in the right place, productivity increases along with job
satisfaction.
✓ MINORITIES OVERREPRESENTED
Studies have shown that minorities tend to be overrepresented in the gig economy. In
addition, some issues at work, previously limited by physical barriers, tend to be
solved in the new economy, facilitating the access of those with special needs.

11. THE GIG ECONOMY AND THE FUTURE OF WORK
THE DOWNSIDE OF THE GIG ECONOMY
✓ ALMIGHTY COMPANIES
Workers rely on the platforms for work, but platforms can take extraordinary measures without their
consent.
✓ WHO IS RESPONSIBLE?
In the case of negative experiences, companies tend to avoid responsibility alleging that they are simply
intermediators between parties.
✓ LACK OF TRANSPARENCY
The lack of transparency is not only felt by consumers, but also by workers that are not aware of certain
algorithmic decisions.
✓ INCUMBENT´S LACK OF COMPETITIVENESS
In certain industries, specific regulations are necessary, and if the new entrants are not subject to
equivalent regulations, the competition becomes unfair.
✓ INDEPENDENT CONTRACTORS OR “EMPLOYEES”?
Some workers are working full time through the platforms, but their classification as independent
contractors would be depriving them of protections guaranteed by law, such as the minimum wage.
✓ WAGE DEGRADATION
The gig economy is making services more affordable, but also raising questions about the real cost of that.

12. CONCLUSIONS

13. THE GIG ECONOMY AND THE FUTURE OF WORK
GIG ECONOMY COMPANIES TEND TO FOLLOW
THE SAME PATTERN.
✓ Their main asset
is the SOFTWARE
INTERFACE
✓ They match
CONTINGENT
WORKERS with
those looking for
a specific service
✓ The platforms
receives a FEE
relative to the task
✓ INFORMATION is
being generated
and kept

14. THE GIG ECONOMY AND THE FUTURE OF WORK
MILLENNIALS ARE DRIVING THE GIG ECONOMY,
BUT THERE IS A SPECIAL POTENTIAL FOR
BOOMERS TOO.
MILLENNIALS BOOMERS
✓ First digital natives
✓ Largest generation of the global
workforce
✓ The most optimistic group about
freelancing
✓ Interested in new projects
✓ Willing to work if they could have
flexible schedules
✓ 54% are far beyond ideal retirement
savings

15. THE GIG ECONOMY AND THE FUTURE OF WORK
THE IDEAS BROUGHT THE PLATFORMS ARE
NOT NECESSARILY NEW, BUT INTERNET
IMPROVED THEIR REACH AND EFFICIENCY.
There have always been people willing to
drive others to the airport in exchange of
a payment, regardless of regulations.
The difference is that internet has put all
of those drivers and passengers together,
and through reviews and rating systems,
created a network of trust, making it
easier to rely on.
IN THE NEW ECONOMY, INFORMAL
SERVICES ARE GETTING ORGANISED.

16. THE GIG ECONOMY AND THE FUTURE OF WORK
THERE IS AN IMBALANCE REGARDING THE
DISTRIBUTION OF ITS BENEFITS.
Deprived from the securities that traditional forms of employment would provide and powerless
towards the rules imposed by the platforms, workers are the most fragile point of this chain.
At the present moment, earnings derived from the platforms represent a relevant supplemental
income for those who already enjoy the benefits of a traditional job, but far from being an ideal
choice for those who are working full time through them.

17. THE GIG ECONOMY AND THE FUTURE OF WORK
SERVICES OFFERED BY THE GIG ECONOMY
ARE LIKELY TO BE DISRUPTIVE.
Those who tried them tend to
consider them:
✓ MORE CONVENIENT
✓ MORE EFFICIENT
✓ WITH BETTER FACILITIES
✓ WITH BETTER PAYMENT METHOD
✓ BETTER GENERAL EXPERIENCE
when compared to traditional
platforms.
In addition, those who never tried
them are likely to try them soon,
and only a few minority reject them
in this first moment.

18. THE GIG ECONOMY AND THE FUTURE OF WORK
DISRUPTION IS A POSITIVE FORCE; AND
INCUMBENTS CANNOT CLOSE THEIR EYES FOR
INNOVATIONS.
They have to keep
innovating to avoid being
surprised by disruptions.
The innovation must be
for:
✓ PRODUCTS
✓ SERVICES
✓ PROCESSES
✓ ORGANIZATIONAL
STRUCTURE

19. THE GIG ECONOMY AND THE FUTURE OF WORK
IT CHANGES THE DYNAMICS OF COMPETITION.
IT EMPOWERS THE SMALL TO
COMPETE WITH THE GIANTS
IT MAKES THE COMPETITION
GLOBAL
What can result in downward
pressure in wages, especially in the
developed countries.
Collaborative economies give
ordinary people the chance to
compete with big chains.

20. THE GIG ECONOMY AND THE FUTURE OF WORK
THE NEW ENTRANTS NOT ONLY TAKE INCUMBENT´S
MARKET SHARE, BUT THEY ALSO INCREASE THE
SIZE OF THE MARKETS.
SAN FRANCISCO, UNITED STATES
2012.
Annual earnings in the taxi industry
BEFORE Uber:
2014.
Uber´s annual earnings
in the city:
million$120 million$500

21. THE GIG ECONOMY AND THE FUTURE OF WORK
Workers current
expectations
towards workplace:
✓ Freedom
✓ Flexibility
✓ Autonomy
✓ Purpose
THE GIG ECONOMY
THE GIG ECONOMY IS A MATCH WITHIN
THE WORKER´S NEW EXPECTATIONS.
HIERARCHICAL
BUREAUCRATIC
JOBS

22. RECOMMENDATIONS

23. THE GIG ECONOMY AND THE FUTURE OF WORK
WHAT TO DEMAND FROM GOVERNMENTS
AND COMPANIES
✓ UPDATED LABOR LAWS
They have to be revised in order to better fit this new world of contingent
workers, guaranteeing fair practices for all parties.
✓ REGULATION OF THE SERVICES
In most of the industries, the services have to be regulated in order to guarantee
a fair level of competitiveness. Governments have the challenge to do that
without discouraging innovation.
✓ BETTER TRANSPARENCY RULES
Companies have to be more transparent and ethical with consumers and
workers.

24. THE GIG ECONOMY AND THE FUTURE OF WORK
REFERENCES
✓ Botsman, R., & Rogers, R. (2010). What’s Mine Is Yours: The Rise of Collaborative Consumption. New York, NY:
HarperCollins Publishers.
✓ Christensen, C. M., Raynor, M. E., & McDonald, R. (2015). What Is Disruptive Innovation? Harvard Business Review.
Retrieved from https://hbr.org/2015/12/what-is-disruptive- innovation#
✓ Horowitz, S., & Rosati, F. (2014). 53 Million Americans are freelancing, new survey finds. Freelancers Union.
Retrieved from https://blog.freelancersunion.org/ 2014/09/04/53million/
✓ JPMorgan Chase & CO Institute. (2016). Paychecks, Paydays and The Online Platform Economy. Retrieved from
https://www.jpmorganchase.com/corporate/institute/document/ jpmc-institute-volatility-2-report.pdf
✓ Katz, L. F., & Krueger, A. B. (2016). The Rise and Nature of Alternative Work Arrangements in the United States,
1995-2015. Scholars at Harvard. Retrieved from http://scholar.harvard.edu/files/lkatz/files/
katz_krueger_cws_v3.pdf?m=1459369766
✓ McKinsey & Company. (2015). A labor market that works: connecting talents with opportunity in the digital age.
Retrieved from http://www.mckinsey.com/global-themes/employment- and-growth/connecting-talent-with-
opportunity-in-the-digital-age
✓ Uber is higher valued than GM, Ford and most of the S&P 500. Nasdaq.
Retrieved from http://www.nasdaq.com/article/uber-is-higher-valued-than-gm-ford-and- most-of-the-sp-500-
cm551162#ixzz49QhVcRkh

25. THE GIG
ECONOMY
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