The current pandemic conditions have forced the informal sector workers to be more creative in seizing available opportunities. The informal sector houses various occupations, from online motorcycle taxi drivers (ojek), resellers or dropshippers of online stores, to freelance content creators making their living via YouTube, Instagram, TikTok, and many others. These workers usually work on a freelance basis, with many of them relying on online platform as the main source of income. They are some of the important players of gig economy.
Gig economy is a freelance work market system where corporations are able to contract independent workers for a short period. The word ‘gig’ in this context refers to work being done in a certain time period.
This system reflects the growing number of freelance workers recruited for short-term projects, or even strictly for the time their services are needed. A skilled freelance worker can easily work anywhere, flexible in taking gigs, and should be able to obtain a good income.
There are three players in the gig economy system:
1. Corporations
Corporations take an important role in gig economy. Not any company can be considered as a gig economy player. Corporations in this sector include companies such as Uber, Grab, Gojek, Lyft, Airbnb, Etsy, TaskRabbit, and many others. They all have some things in common:
- Facilitate direct transaction between consumers and producers.
- Offer flexible working hours for their workers.
- Implement online payment using platforms.
- Utilize online profiles and reviews from producers and consumers.
2. Workers
Gig economy workers can be grouped into two categories: those who offer services, and those who offer goods. Service providers include drivers, couriers, handymen, and others. Goods providers include artists, clothing resellers, craftsmen, and others.
3. Consumers
In line with the general definition of consumers, these are the people who enjoy the goods or services offered in the market. They are an important part of gig economy, as no transactions can work without any demand from consumers.
As with any other economic sector, there are challenges that need to be overcome by gig economy workers. However, with help from Bank Raya API, the challenges just become easier to handle. Let’s grow gig economy with Bank Raya!
