As an employer you want to keep costs as low as possible. For this reason many companies have looked into the so-called “gig economy” as a way to eliminate things like payroll taxes, office space, and training costs from the budget. It has paid off in spades for Uber, which has become the fastest growing startup in history by reaching $60 billion in just 5 years.
Classifying employees as independent contractors can be tricky. You have to give up control over things like how, when, and where they work. This can be a challenge delivering your goods or services, especially at peak times. There may also be legal issues surrounding this classification, and there are likely to be more rules coming soon.
Many companies that started off using the gig economy model have transitioned to more traditional business models. Managed by Q, an office cleaning service, as well as Instacart, a grocery delivery service, are two of the most recent converts. Sometimes the old way of doing business works best.
Learn more about the gig economy from this infographic. Whether or not it’s right for your company, this model is experiencing substantial growth and isn’t likely to go anywhere any time soon.