How The Gig Economy Is Transforming Cities

The gig economy has undoubtedly been one of the most profound changes in the labor market in recent years. A new project from the University of Melbourne highlights how it has affected cities as well.

The five-year study examines the gig economy from the perspective of not only workers but also consumers and industry more broadly. It makes a number of recommendations to help manage the transformation. The research included detailed interviews with 90 participants and revealed complex and often unaddressed issues, with clear dissatisfaction with the gig economy from consumers and workers alike.

“Many workers and consumers are growing tired of the gig economy and are not passively accepting how things are,” the researchers explain. “Our interviewees showcase a range of complex emotions, but many have become profoundly disaffected.”

Transforming cities

The researchers wanted to fully understand both the positive and negative aspects of gig work platforms from as many perspectives as they could.

“Though some workers appreciate the flexibility to earn some top-up income, many are looking for ways out owing to dissatisfaction with low pay, fears for their personal safety and well-being, feelings of isolation, and a lack of viable career pathway,” they explain.

“On the other hand, although consumers have at times enjoyed the convenience of these on-demand platforms, our findings show that consumers actively grapple with the tricky and inequitable politics of the gig economy when making decisions about using these services.”

They recommend that governments do more to regulate gig platforms so that the pay and conditions of workers are improved. Ideally, they believe that workers should be recognized as full employees.

The highly entrenched nature of many of the gig platforms prompts us to pause to think about the kinds of cities we really want to live in, whether from an urban planning and infrastructure perspective or the rights of workers and equity access to services.

“If we’re genuinely committed to cities that are socially just, it might be that these kinds of platforms have finally had their day,” the authors conclude.

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