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Why Now May be the Best Time to Not Leave the Gig Economy

As the economy continues to improve, gig economy workers – specifically those working in food delivery – are starting to leave their on-demand positions in favor of more traditional employment. However, now may be the perfect time to stick around, as companies such as Instacart and Postmates make changes aimed at making working for them more attractive.

Many of the on-demand platforms emerged during the recession, catering to displaced workers who were desperate for any kind of income, even the potentially up-and-down income offered by the gig economy. However, national unemployment is back around “normal” (around 4 percent, according to economists), and many people are finding it easier to get back into the more traditional job market, with the steady paychecks and benefits it offers.

Currently, the gig economy loses half its workers each year, according to a recent study from JPMorgan Chase & Co. Institute. Although high turnovers are expected in the gig economy due to many different factors, companies like Instacart, Postmates, and Shipt are making efforts to update and implement policies that will retain workers (and maybe avoid lawsuits).

Instacart efforts to retain workers

Instacart has been trying to create community among their employees through efforts like regular meetings, contact with company leadership, and regular updates. They also offer an annual retreat for their employees.

Instacart also recently updated its tipping policy as part of an effort to be more transparent, presumably as a result of the recent $4.6 million lawsuit settlement, in which employees claimed the company was improperly handling tips.

DoorDash provides benefits and perks

While Instacart works on community, DoorDash is working on perks. In a partnership with Stride Health, beginning at the end of 2016, DoorDash began offering health and vision insurance options to its Dashers. Stride Health is an insurance brokerage company that aims to help people find the best coverage plan for the lowest price.

This trend toward health insurance for gig economy workers also includes Uber and Lyft, who are also Stride Health partners.

As the gig economy works to meet the challenges of a growing economy, they seem likely to roll out more perks and benefits for their workers as they aim at employee retention. Those who stick around may well reap the benefits.

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