Some people may argue and say we’ve reached the peak of the “sharing” economy.
Average monthly earnings on sharing economy companies such as Lyft, which use technology to match drivers to people who need a ride, peaked earlier this year, according to a report from the JPMorgan Chase Institute. It seems that not everything can be perfect! On other platforms such as Airbnb, which help people rent out their apartment or houses, the share of consumers participating has steadily declined from the previous year.
On both types of online platforms, wages are growing more slowly as is overall participation. However, it appears that retention is awful. Approximately 52% of people working for labor platforms quit within a year, and 50% of those on capital platforms leave within the first 12 months. The real question is why? Why is this happening? How could the sharing economy be bad?
I think a huge issue that people who work for these sharing economy companies have is the lack of job security. Since most are hired as independent contractors rather than employees, many people only work temporarily until they could find a more stable job. The biggest pro of working as an independent contract is you get to make your own schedule, but unfortunately you don’t get benefits such as health care, or guaranteed wages. These are definitely issues that need to be solved in the near future!