Gig Economy to Reach $455 Billion by 2023
Findings from New MasterCard Study
The gig economy will see double-digit growth every year for the next five years, according to a recent study by MasterCard.
The study measured the size of the global gig economy in 2018 as generating $204 billion in gross volume, with 58 percent of that total coming from transportation services, such as the ride-sharing apps Uber and Lyft. By 2023, the study predicts, the gig economy will reach $455 billion of gross volume.
Companies Must Rethink How to Attract Workers
This expansion is creating increased demand for gig workers, and companies will continue to need to work to attract and retain this new kind of talent.
“Both giants and up-and-coming digital platforms are competing fiercely for Gig workers, particularly when expanding to new markets where a sizeable pool of workers is needed to encourage demand by customers.
And it’s a big problem in the largest gig economy sector, transportation-related services, where attrition rates are notoriously high – as much as 68 percent for new Uber drivers,” Silvio Piserchia, MasterCard’s Global Vice President, Prepaid, wrote in a blog post about the study.
“Just as a quality pool of workers is essential to maintaining the level of customer experience that keeps consumers coming back and the company growing, a platform that supports the needs of Gig workers is critical to keeping those workers from jumping to a competitor.”
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