The year 2024 has been a tumultuous period for gig workers using platforms like Uber, Instacart, and similar apps. These workers have faced a range of new challenges, from tip baiting and hacking to evolving laws that reshape their earning potential.
Amidst these shifts, gig workers have reported earning less on platforms such as Uber Eats and DoorDash compared to previous years. According to a February study by Gridwise, there was a significant drop in earnings, with Uber Eats drivers experiencing a 15.4% decrease on average. Representatives from DoorDash, Uber Eats, and Instacart have contested this study, citing incomplete data. Moreover, research from the UC Berkeley Labor Center suggests that after expenses, many gig workers do not even earn the equivalent of their local minimum wage. Additionally, the issue of tip baiting, where customers revoke tips promised during delivery acceptance, persists for services like Walmart’s Spark.
The threat of hackers has also been a significant concern in 2024. According to Sift, about 20% of accounts on food delivery apps have been targeted by hackers. These attacks affect both customers and delivery workers, often leading to unauthorized usage of accounts. Workers on Walmart’s Spark platform have reported suspicious activities under their accounts, with some facing account deactivation due to these issues. Walmart, relying on facial recognition technology to secure driver accounts, has maintained that its system functions correctly, though some workers have faced deactivation without clear explanations.
On the brighter side, some gig workers have ventured into entrepreneurship. By developing their own businesses, they have bypassed app-based platforms and gained more control over their earnings. Drivers leveraging their experience with companies like Uber and Lyft have started black-car services, often retaining clients they initially met through these apps. This shift not only allows them to build direct relationships with clients but also offers them the flexible work schedules that gig platforms advertise. Tony Illes, a delivery driver in Seattle, exemplifies this trend by creating his own food delivery service, promoted locally through conventional methods.
In reaction to the economic pressures facing gig workers, cities like New York and Seattle have implemented new pay regulations in 2024. In New York, a new mandate ensures restaurant food delivery workers earn a minimum of $19.56 per hour, with adjustments for inflation. Seattle’s ‘Pay Up’ initiative grants Instacart and other delivery workers at least $19.97 per hour. These changes, however, have led to unintended consequences. DoorDash, for instance, introduced a $1.99 fee in New York to counterbalance its financial impact. Meanwhile, some Instacart workers in Seattle reported extended delivery routes to avoid the city’s higher pay requirements.
Notably, the gig economy has expanded beyond traditional sectors like rideshare and delivery. A report from the Roosevelt Institute highlights the use of gig apps in nursing and healthcare, offering similar job opportunities with associated challenges. These gig-based jobs provide flexibility but also come with the downside of lack of stability, security, and support. An IT contractor using gig apps shared similar sentiments about the freedom and the difficulty in finding full-time positions.
In conclusion, the landscape for gig workers in 2024 has been defined by financial struggles, security threats, and evolving regulations. While some have found new pathways to success through entrepreneurship, the majority continue to navigate a complex and often precarious work environment. These developments highlight the need for ongoing adaptation and support to ensure fair treatment and stability for gig workers.
Source: Businessinsider
