1 hour ago
Summary:
- New research shows that platform work provides essential financial support during periods of hardship and helps workers weather economic uncertainty and rising costs.
- Flexible work with platforms like Uber is a temporary solution for many — over half of those who started working with Uber during the pandemic or the years of high inflation immediately following are no longer working on platforms. Still, over 90% of those workers who have moved on would consider returning to platform work.
- Workers who joined up to tackle the high cost of living were more likely to have other jobs and value flexibility highly.
- Most of those who started working with platforms after being laid off have since found new jobs (69%) or now own a business (11%), with 21% reporting that platforms gave them more time to find work they want to do.
- Over 80% valued the unique flexibility of work with a platform, and 88% said immediate income access was key to their decision to join.
New research by Mandala Partners offers insights into how Americans are responding to different kinds of economic strain. It shows that access to flexible work on platforms like Uber — such as rideshare and food delivery — helps American workers weather uncertain economic times. The report uses a survey of two groups of people: those who started platform work during the COVID pandemic and others who joined during the inflation surge that followed. Those periods were marked by very different economic challenges: mass layoffs in 2020 and declining real incomes due to high inflation in 2022 (down 4.5% from 2019 levels). But in both cases, platform work put extra cash in people’s pockets exactly when they needed it.
This wasn’t a permanent job change, but it also wasn’t intended to be. Platform work was a temporary source of support for many — 55% of the surveyed are no longer actively working with platforms. Those who remained active worked less and relied less on their platform earnings.
So why did people move on? For some, platform work served its purpose. When asked about the impact platform work had on workers’ lives, the top cited reasons were that it helped them increase income (33%), maintain their lifestyle while they were looking for other work (33%), and cover gaps or changes in their income from other sources (31%). Moreover, 92% of inactive drivers and couriers say that they would consider doing platform work again, especially if they needed additional income to supplement their other work (50%) or faced another increase in the cost of living (33%).
What makes platform work so appealing during periods of hardship is how accessible and flexible it is. This combination is rare in the traditional labor market. The overwhelming majority — over 80% — said that flexibility of driving or delivering was appealing to them. On top of that, people can get access to income almost instantly — there’s no interview process, no language requirements, and only a quick onboarding process. In fact, 88% said that the ability to start earning immediately was an important factor in their decision to start platform work.
These features are especially important to those who face barriers in the traditional labor market. Among those who joined platforms during the pandemic, 5% were entering the workforce for the first time or after a long break. For inflation-period joiners, it was 8%. This is much higher than the share of new hires in the broader labor market who were not previously in the labor force (2.8%). The flexibility of platform work, ease of starting it, and lack of an interview process was especially attractive for this group relative to other respondents. Many of those who used platforms to enter the workforce had a health problem or disability that limits their day-to-day activities (29%).
The report also highlights how the different nature of economic shocks shaped platform work participation. Those who started working during the inflation period were more likely to use platforms to manage the high cost of living and worked fewer hours, while those who started working during the pandemic were more likely to be seeking additional income after being laid off and worked more hours on platforms.
Respondents who said they used platforms as a source of additional income to combat the high cost of living were more likely to be employed at other jobs (70% vs 53% of other respondents) and value flexibility more highly (91% vs 79%).
Many of those who started platform work after being laid off are back on their feet again: 69% are now employed and 11% own a business. Only about 5% are currently unemployed, looking for work, and not working on platforms. A sizable share of previously laid off workers (21%) said that platforms gave them more time to find work that fits their preferences. And it’s not only about recovering from a layoff: 6% reported they deliberately used platforms to support a transition between jobs or businesses.
The new Mandala research brings new insights into how platform work can be a real option for many Americans, bringing flexible earning opportunities when they need them most.