Week of November 25, 2018 — This Week in the Gig Economy
In this publication of This Week in the Gig Economy, we’re covering topics ranging from the large trends in the labour market, the future of work and the latest developments with large gig economy companies. Without further ado:
Gig Economy Developments
An online platform where you can buy and sell your skills
As we progress in the world where technology is developing at such a high pace and, businesses around the world are facing disruption. Traditional business models are adopting innovations to survive and remain competitive. At the same time, the trend has created a large number of skilled, independent contractors and, other people who prefer to work remotely. The primary reason for that is to achieve flexibility and, employees are looking to replace their 9-to-5 office hours for a nomadic, digital lifestyle. Realizing the market needs, Greg Hucker established Maharati(which by the way means “my skills” in Arabic), an online marketplace where micro-freelancers can sell their skills to individuals and businesses looking for those skills, all in a self-contained online ecosystem. Currently, It aims to operate in the MENA region and, slowly expand its operations globally.
Deliveroo in talks with investors on fundraising
The food start-up Deliveroo is in talks to raise hundreds of millions of pounds from investors as part of a deal that could set a valuation floor for a formal takeover bid from Uber. Sources told Sky News that the fundraising was being pitched at a valuation of between $3bn and $4bn, with the gig-economy start-up likely to seek between $350m and $500m of new capital.
“It’s like the gig economy for white collar set” — Mr Biederman(Co-Founder, Catalant)
Rob Biederman and Pat Petitti started Harvard Business School in 2013. After getting $5000 each to launch a business, they both envisioned that the gig economy could work well for skilled office workers as for drivers and couriers. After launching and failing with various different small-scale projects, they finally launched Catalant, a platform that made their vision turn into a reality. Catalant is an online platform that connects job seekers with white collar jobs. It does that by assessing the projects the companies need to be staffed. After the assessment, it shows the best-matched resumes from the 55,000 roster of people on its platform with there feedbacks from earlier jobs. The Boston-based company has signed up thousands of businesses, including more than 30 Fortune 100 companies and household names such as General Electric, Hess, Royal Dutch Shell and Staples. Taking a 20 per cent fee, its revenues have accelerated from $50m in 2017 to a current annual run rate of $100m.
Trends and The Future of Work
Digital Change and the gig economy rewire the world of work — G20 2018 summit
Last week we all saw the G20 summit wrap up in Buenos Aires. It was the first G20 summit to be hosted in South America. Aside from all the other headlines that it created, one of the most important discussions that took place was on the topic of the gig economy. As a G20 president, Argentina made it one of its priorities, and items for the summit agenda — the theme of work.
“When we talk about the future of work, we understand the future of work is already here,” says Jacobo Cohen Imach, head of government relations at Mercado Libre founded in Buenos Aires
As people get used to this new way of lifestyle, in which technology-driven platform companies connect workers and customers, employers hire and monitor there employees or independent contractors digitally, the fear of automation looms.
Academics, businesses and experts say the key is to update welfare and labour laws to reflect the new order. Governments need to ensure workers at platform companies do not fall in the gaps between existing regulation, while education and benefit systems must be updated.
For those who are interested in learning more on what happened in G20 summit and, you don’t have time to read those long boring articles, check this out.
Very very rich people are driving Uber and doing other gigs too
There are some gig economy workers out there who are very wealthy— but, they are taking these jobs for a bigger prize in mind. Their purpose is to understand the nature of the gig economy by going to the trenches and experiencing it. Here some multimillionaires that you might find driving your Uber or delivering your IKEA furniture:
- Paul English, co-founder of travel site Kayak, who drove his Tesla X for Uber while researching customer service,
- Michael Grimes of Morgan Stanley, who drives occasionally for Uber because he hopes to underwrite its initial public offering,
- Sequoia Capital’s Michael Moritz “packed up groceries” at Instacart after his venture capital firm backed the company in 2013, and
- Stacy Brown-Philpot, CEO of TaskRabbit, has signed into the app at least once and cleaned a customer’s apartment.
Your next job interview may be with a robot
The interview begins “Hello, my name is Viera, and I am a robot. What is your name? ” — Vera, a robot that does job interviews. She has already conducted 10,000+of job interviews. Hiring is going through a revolution. From facial expression software to data mining companies that read your tweets and Instagram post to see how successful you will be at work; we are entering a completely different era of hiring. It's not a surprise that most of the Fortune 500 companies are using some form of automation in there hiring process.
It may be fully legal to apply technology and mining people’s personal data but is it ethical and fair? In this episode of Moving Upstream, WSJ’s Jason Bellini investigates.
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