Busted: 3 big myths of the gig economy

By admin / May 29, 2018

It’s a term that’s on a lot of tongues, with the gig economy constantly grabbing the headlines all over the world. Some of the biggest companies on the planet are based on this model, which means that it’s hardly surprising so many people are talking about it.

One only has to take a look at ShiftPixy, and see how easy it has become for businesses to use this model, to see how open and popular the gig economy has come.

At the same time, a lot of this talk isn’t accurate. As is the case with anything that soars in popularity, misinformation can spread. This is the reason we have penned today’s article, and we will now take a look at three myths that are really blighting this form of business.

Myth #1 – The gig economy isn’t here to stay

When the first companies based on the gig economy came to light, this is what everyone said. Considering the fact that Uber has now been around for nine years, it goes without saying that we are still waiting for this industry to apparently implode.

So, let’s stop waiting, and instead look at some hard and fast statistics. This is an industry which has grown, year on year, since its formation. Not only that, but experts believe that by 2020 more than half of workers in the United States will be making a living under this way of working. Suffice to say, the gig economy isn’t going anywhere.

Myth #2 – Most companies are web-only, and don’t make any money

There’s just one answer to this next myth; Uber. As we have already alluded to, it’s now been in business for nigh-on a decade. Time isn’t the only thing that is on its side though. As well as this, one only has to look at the numbers. It is officially the fastest growing startup of all time and within five years of being formed, it had a whopping $60 billion valuation placed on its head.

The success stories don’t just end there either. For example, Airbnb is now turning a profit and is another one of the biggest gig economy companies on the planet.

Following on from the above, it’s safe to say that a lot of companies oprating under the gig economy model are coining huge amounts of money. Again, trends suggest that this isn’t going to change anytime soon.

Myth #3 – It’s all about avoiding extra costs for companies

A lot of people think that companies are only interested in the gig economy because they will avoid the various taxes, pensions and other extra costs that are associated with full-time employees.

Well, while the above is all true, there are further reasons. The gig economy allows companies to really tap into specialist markets. For example, one survey has found that over half of employers typically turn to independent contractors simply due to their enhanced expertise. In other words, they can employee people who are exactly suited to a project, and don’t have to fit in square pegs in round holes, so to speak.

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