By Jun-Seo Kim
Illustration by Keo Morakod Ung
The gig economy has transformed the modern workforce, offering a new employment model emphasising flexibility and independence. Platforms like Uber, DoorDash, and Fiverr have enabled millions to earn a living on their own terms, choosing when, where, and how much they work. For many, this represents liberation from the rigid schedules of traditional 9-to-5 jobs, providing opportunities for those seeking supplemental income. However, beneath the allure of autonomy lies a darker reality: the gig economy often undermines workers’ rights, leaving many without job security, benefits, or fair wages. This essay explores both sides of the gig economy while arguing that without significant reforms, the gig economy risks prioritizing corporate profits over workers’ well-being.
The primary appeal of the gig economy is its flexibility. For instance, a college student can drive for Lyft during weekends to cover tuition costs, while a stay-at-home parent might use Upwork to freelance as a graphic designer during nap times. According to a 2023 study by the McKinsey Global Institute, approximately 36% of U.S. workers participate in the gig economy, with many citing the ability to control their schedules as a key motivator. This flexibility is particularly valuable in an era where work-life balance is a growing priority. For example, gig work allows individuals to pursue passion projects, care for family members, or even travel while earning an income. Moreover, the gig economy has democratized access to work by lowering barriers to entry; anyone with a smartphone and skill can find gigs on platforms like TaskRabbit or Freelancer.
However, the flexibility of the gig economy often comes at a cost: the erosion of workers’ rights. Gig workers are typically classified as independent contractors, which means they are excluded from many labor protections. They do not receive benefits such as health insurance or paid sick leave, benefits that are standard in traditional employment. A 2020 survey by the Economic Policy Institute found that gig workers earn 29% less per hour than traditional employees when accounting for the lack of benefits and the costs of self-employment, such as vehicle maintenance for rideshare drivers. Additionally, gig workers lack job security; they can be deactivated from platforms with little notice, as seen in numerous accounts of Uber drivers being “deactivated” for low ratings without a clear appeals process. This insecurity is compounded by the absence of minimum wage guarantees, leaving workers vulnerable to exploitation.
Another significant concern is the power imbalance between gig workers and the platforms they depend on. Companies like Uber and DoorDash set the terms of engagement, often using algorithms to control pricing, assign jobs, and monitor performance. Workers have little say in these processes and are subject to unilateral changes in pay structures. Hence, the business model often shifts risks onto workers while platforms reap the profits, raising ethical questions. For example, in 2025, DoorDash faced a backlash after unfairly using customer tips to subsidize the wages of its delivery workers.
On the other hand, the gig economy has spurred innovation and economic growth, benefiting both consumers and businesses. Platforms have created new markets, such as ride-sharing and food delivery, that have become integral to modern life. For small businesses and entrepreneurs, gig platforms provide access to a flexible workforce without the costs of hiring full-time employees. Additionally, some gig workers thrive in this environment, particularly high-skilled freelancers in fields like tech or design, who can command high rates on platforms like Toptal. For these workers, the gig economy offers not just flexibility but also the potential for higher earnings and professional growth.
Despite these benefits, the long-term sustainability of the gig economy hinges on addressing its inequalities. Policymakers must balance the need for flexibility with the protection of workers’ rights. One potential solution is a hybrid model where gig workers receive some employee benefits, like portable health insurance or paid time off, without losing their independent status. The European Union has taken steps in this direction with the 2024 Platform Work Directive, which aims to improve working conditions by ensuring algorithm transparency and providing social protection. Another approach is to strengthen gig workers’ ability to unionize, giving them a collective voice to negotiate with platforms. Governments could also incentivize companies to offer better wages and benefits through tax breaks or subsidies, encouraging a race to the top in labour standards.
In conclusion, the gig economy offers undeniable advantages, particularly in terms of flexibility, but it also poses significant threats to workers’ rights. The lack of benefits, job security, and bargaining power leaves many gig workers vulnerable, while platforms often prioritize profits over fair treatment. While the gig economy has driven innovation, its current trajectory risks exacerbating inequality. By implementing reforms that provide gig workers with basic protection and a stronger voice, society can maintain the benefits of the new labour model without sacrificing the principles of fairness. The gig economy should be a path to opportunity, not a race to the bottom for workers’ rights.
UCL Rethinking Economics 