Gig Work – A game that is moving in the wrong direction

by IAmSavvy | Aug 21, 2022 | Finance

CAUTION: This may be an uncomfortable conversation that may trigger some of you. It may make you defensive. This article isn’t to stand in judgment of anyone. It is an eye-opening account of where gig work is headed in this nation, and what you need to do to build a sustainable income that grows.

The Party Line: Be Your Own Boss! Work On Your Own Schedule! You’re In Control!

Notice they never promise you’ll make enough to cover your bills.

Jada became very disillusioned with Corporate America. She was in so much pain that she didn’t care about the consequences. She just decided that she wanted out – NOW, and she quit her job. She did not have a plan, so she thought she could make quick cash working for a rideshare company.

Surprisingly, signing up with this company wasn’t as easy as she thought. Of course, she didn’t have to provide a resume, but she had to complete an application and a background check, her car had to pass an inspection, and it was a two-week process to get through onboarding.

Are You Really Your Own Boss?

Jada thought to herself, “Funny, for a company that says, I’m my own boss, there sure are a lot of rules I have to follow. The company “randomly” asked her to pull over, take a selfie and send it to the company to prove it was her that was driving.

She was “randomly” selected so many times she wondered if she was randomly selected or racially profiled. The company would freeze her account until she sent the image. She heard stories of accounts being frozen or deactivated if they refused too many rides.

Where Jada lives, the current rate is $0.96 per mile, and the average trip is 5.41 miles. So, Jada earned an average of $5.19 per ride. She is at the mercy of the client to give her a tip to make a difference. Ask yourself, would you give someone a $5 – $10 tip for a service that cost 5 bucks? Another fun fact, rideshare companies don’t pay for the miles it takes to get to the client. Jada can drive 12 miles, without getting paid, to pick up a fare traveling less than six miles. Nice!

Jada learned there was no security in this role. If she put all her eggs in one basket financially, she could wake up to find her account deactivated. She wasn’t the boss; the company that owned the rideshare platform was in control.

Jada found that gig work was just as frustrating as the hourly wages she left behind. Jada was working on someone else’s platform. She didn’t own it, and the owner reserves the right to change the rules (to their advantage) anytime they see fit.

Are You Picking Your Own Hours? What happened to work-life balance?

Here at The Savvy Solo, we have interviewed some drivers that work at Uber. In our city, they congregate at the airports because that’s where they get the best fares. The drivers that had larger vehicles commanded more wages. If they were lucky, they could make $200 before noon, and they were done with their day. With Uber, if you don’t have a car (or want a larger vehicle to make more money), you can rent one. We met other drivers with compact cars that made money, but they worked 16 – 18 hours a day picking up fares. So, where is the work-life balance?

Apps like Instawork allow you to pick up shifts doing hospitality, food service, or warehouse work. It’s difficult to get the premium shifts you want, so you could be forced to take what’s left over, or you may get nothing at all.

Isolation – The irony of autonomy

When there’s something weird, and it don’t look good. Who you gonna call? NOBODY! If you thought you were fighting a faceless corporation, try to argue for your rights with an email or automated system. There are no unions, and there are no systems of checks and balances. So, your choices are to deal with it or leave.

Please remember we are describing one gig work category involving physical labor and little work experience. Because there are more laborers than jobs, companies are lowering their wage and raising the requirements to exclude more workers. This dynamic is beginning to spread through all forms of gig work.

Freelancers

This type of work does offer some advantages. You can sign up with multiple platforms. You can have multiple income streams. Your expertise can command higher pay, and you can find contract work that lasts for months or years.

With Uber, god bless em’; they will let you keep the whole $0.96 per mile you make. Platforms like Upwork take 5% – 20% of what you make. Is it fair? Probably not, but I rather make $480 than $5.19 any day.

Are you setting your own pay rates?

Let’s research white paper writers on Upwork. This is a premium writing style that demands expertise, it’s a costly undertaking. At the minimum, the charge to create a white paper is $3,000 because it takes 4 – 6 weeks to create a white paper. White papers entail gathering info from the client, research, interviews, first drafts, approvals, etc. You cannot deliver a compelling white paper in a week. That is an unreasonable demand that is probably expected by the company.

Researching white paper writers on Upwork, I found Galina, who charges $1,000 to create white papers. She claims she has 12 years’ experience. There’s no way she should charge so little for such massive work. This is the unfortunate side effect of gig work. It pits worker against worker. Out of desperation, one worker sets a rate far below the value just to get the job. Now, everyone is in a mad race to the bottom dollar.

Are you in control?

What you are paying for is the Upwork branding, their trustworthiness, and traffic that allows you to connect with businesses that need a particular service. Here is the rub with freelance work, you have to put yourself out there. Like any business marketing yourself and getting your name out there is your responsibility.

You have to market and brand yourself. You need to go beyond passively slapping your picture and rates on a platform. Building relationships, networking, repeat business, and referrals are your life. It’s why people that use platforms like Upwork or Shopify never see a dime. No one is going to hire you if they don’t know you exist.

On the other hand, you work for your client. You believe you can work whenever you want, eh? Well, your client begs to differ. You are on their timetable. You must meet deadlines, and create impeccable work. No matter how demanding your client is, your attitude must remain professional.

Because one crabby, unreasonable client can ruin your reputation.

Receiving a low rating will make it difficult, but not impossible to get more work. So, try to keep a level head. While your clients interview you, you must interview them. Or like with a salaried position, you’ll end up working long hours for unreasonable pay.

Does gig work offer the freedom and autonomy you were looking for, or did Corporate America just build a better mouse trap?

Here is an article titled, “The Uberization Of Work: Pros And Cons Of The Gig Economy” that is a must-read. It’s pre-pandemic, but it still brings up valid points.

Gig work means a corporation doesn’t have to hold any responsibility for its employees. They don’t have to provide health insurance, 401Ks, unemployment benefits, or taxes. If you think about it, it must be like Christmas time for big business.

It’s only a matter of time before they look at full-time employees and say, “Why do I need you? I can replace you with an employee that will do twice the work, for half the pay, and I don’t have to pay them benefits.” That’s company ethics. As you see, it’s already in the works as Google has replaced half their staff with gig workers. Everyone loses. Well, not everyone, the house (company) always wins because it’s their game.

Side Hustles

This is an inspiring story that describes the exception, not the norm. The title is a bit deceiving; it’s just a hook to get you to read the story. Here are the important points that aren’t found in the title.

• She began her online business in June 2020.
• By working on her business, every day, she earned a following and a large company found her and asked her to work for a client
• While she was building 100 videos, she hustled every day on Tik Tok
• Her first launch was in November 2020 – she earned $15,000
• In October 2021, 15 months later, she made $100,000 in a single day

This is a step in the right direction. A side hustle is a fancy name for a second job. However, since this is a job of your own choosing, we hope you are picking something you like to do. Remember, this story is the exception, not the norm. Social media can speed your path, but it takes hard work and risk to make a side hustle profitable.

If you’re doing it right, there are many benefits. It’s your creative path. You can show your expertise and build something you are proud to share with the world and make money. That is the true spirit of entrepreneurship. You get paid if you share your knowledge and solve someone else’s problems. Everyone wins.

Here are some tips.

• Create a website. Own your process. Do not put your info on a platform you do not control.
• Social media can help get you started but do not leave your business in the hands of someone that can take away your income with a single change of an algorithm.
• Build an email list. Your email list is yours; Google can’t take it away from you.

Sometimes, we work gig work because we feel the most valuable thing we own is that which is outside of ourselves. For example, Jada picked Uber because she felt the only thing valuable about her was her car, so she chose Uber.

The biggest takeaway from this story is how Anna made $100,000. She made it by teaching. Post-pandemic, teaching is one of the most profitable online ventures you can invest in.

We’ll, talk about it in Part IV of this series – Self-Employed, Solopreneurs, and Entrepreneurs.