What Is Gig Economy
The gig economy is a free market system where companies appoint temporary contractors, part-time employees and independent workers instead of permanent employees in the sharing economy. The term “gig” means a job that lasts for a certain period, typically used by musicians. It is a specific trade of short-term services, and payment is made per task. It mainly encompasses flexible and freelance or project-based jobs which often completed via an online platform. This allows businesses and workers to work together at a lower commitment and higher freedom.
Gig Economy Companies
TaskRabbit was among the first gig economy platforms in the world, established in 2008. It is an online marketplace that matches freelance labour with local demand, allowing consumers to find immediate help with everyday tasks. In Malaysia, the top platforms are e-hailing, food delivery and freelancing. These platforms have created countless job opportunities. E-hailing services are common for people who do not drive, do not own a vehicle, or occasionally need a ride. GrabFood, foodpanda, galaEATS and Hungry are some of the most popular food delivery app available in Johor. These platforms are helping consumers like you to save time and money every day. Freelancing or crowdsourcing platforms connect businesses and freelancers such as digital marketer, designer and copywriter. Freelancer, Upwork, and the Malaysian-based eUsahawan are some of the examples.While some gig economy companies are rising, some companies are negatively impacted by the pandemic. One of the best examples is Airbnb. Airbnb is an online marketplace for lodging and tourism activities. The restriction of travel has frozen the marketplace. Its 2020 revenue reduced by over 50% compared to 2019.
Gig Economy Trends In Malaysia
Because of the pandemic, people reduce their movement. Besides that, companies are transforming their business models and digitalization to keep up with technological advancement. These have caused a surge in demand for food and grocery deliveries and online shopping. You can tell the difference between before the pandemic and now. People who have been retrenched since 2020 are supplying the workforce to the gig economy. According to the New Straits Times, the Malaysian government provides incentives involving the welfare of gig workers in Pelan Jana Semula Ekonomi Negara (Penjana), with a package of RM75 million. This measure incorporates a coordinating award of up to RM50 million for Gig Economic stages that add to the employees through Socso and EPF’s I-Saraan and RM25 million for Malaysia Digital Economy Corporation (MDEC) Global Online Workforce (GLOW) programs.
There are several reasons why the gig economy is the future as compared to the traditional economy. First, the internet allows people to study and hired without having to travel physically. Brain science is the second reason. Numerous studies have confirmed that working in short bursts instead of 8.8 hours a day sitting in chairs makes us more productive and efficient workers. The third and last reason is cost-effectiveness. Companies are paying a lower rate with no benefits (such as EPF and Socso) to freelancers and hence reduces the business’s cost. On the other hand, many tech companies names have been adopted as verbs. You no longer say “I am taking a ride to the mall” but say “I am grabbing to the mall “ instead, or “Let me photoshop the photo for you” instead of “Let me edit the photo for you”.
In summary, the gig economy is growing and here to stay. Take this opportunity to be part of the gig economy community as a freelancer, business owner or both.