Quartz reports: Maybe Uber isn’t that innovative after all.
A new study from the McKinsey Global Institute (MGI), finds that the “gig” economy model popularized by Uber has a lot in common with the economies of poor countries today, as well as the US and Europe before the Industrial Revolution.
Uber and other “gig” companies like Lyft and TaskRabbit hire their workers as independent contractors rather than full employees. These jobs comes with a lot of flexibility — workers can set their own schedules — but they lack the protections afforded full-time employees of larger corporate enterprises, such as health care and a guaranteed minimum wage. Uber and its digital peers are a small if well-known part of the larger independent workforce, which McKinsey estimates at 20% to 30% of the working-age population in the US and the EU-15, or some 160 million people.
While companies like Uber have been hailed as modern conveniences for consumers, they are proving to be just the opposite for workers. App-based services rely on income inequality and may well be perpetuating the divide between capital and labor. They are also reverting economies to pre-industrial ideas about work. [Continue reading…]