Question

1. Define the term gig economy and give some company examples. (Answer based article information and by doing a web search on the topic…)

2. Choose any one of the companies you listed in Question 1 and describe the business model of this member of the gig economy.


3. Explain why consumers, companies and policymakers might at the same time be interested in and also concerned about the gig economy.
4. Despite the effect on employment, a company in the gig economy can disrupt its industry. Describe an example of this disruption?

Answer 1

Answer 1:

An economy in which temporary positions in the job market are common and organizations contract with independent employees on short term contracts. This leads to an environment of flexible jobs rather than traditional economy of full time workers who do not change their jobs and prefer a lifetime career. In the growing age of digitization and automation, the phenomenon of gig economy will become common.

Some of the companies that have been successful in employing workers on short term contracts are Amazon, Uber and Deliveroo. Workers are also employed for few hours which prevents the company to pay employers national insurance, sickness and holiday pay.