What is the gig economy and is it worth it?

The gig economy has transformed traditional employment, offering flexibility, diversity, and the ability to set your own hours and financial goals. For many in the UK, it’s become a lifeline, especially during the pandemic. With 4.4% of the UK’s workforce currently participating and projections expecting this to rise to 75% in the next five years, the gig economy is rapidly growing.

If you’re thinking about stepping away from the 9-5 grind to try Uber driving, food delivery, or another freelance gig, here’s what you need to know.

What is the gig economy?

The gig economy is a free-market system where people work as contractors or freelancers for various tasks or projects, known as “gigs.” This could include ridesharing, food delivery, tutoring, or even dog walking.

In the UK alone, the market size generated by gig workers in terms of value was £20 billion in 2019. It's an increasingly popular way or working, no matter if it's full-time or to supplement another income.

How does the gig economy work?

Convenience is the cornerstone of the gig economy. Mobile apps and platforms connect service providers with customers while handling communication and payment. Platforms like Uber, Uber Eats, and Amazon Flex are popular for on-demand services.

What are the pros and cons of the gig economy?

As with anything in life, there are pros and cons to being a gig worker. The success of working in this alternative system depends on different factors that you need to consider.

Pros:

• Flexibility: Set your schedule and work when it suits you.

• Diversity: Engage in multiple gigs to keep workdays interesting.

• Control: Choose your gigs and negotiate your pay.

• Earning Potential: Work more hours to increase your income.

Cons:

• Lack of Benefits: No sick leave, minimum wage, or health insurance in many cases.

• Tax Responsibility: You’re responsible for your taxes—an accountant can help.

• Inconsistent Income: Pay varies depending on workload and demand.

Just like any form of income, if you're prepared and well-researched, being a gig worker can be very rewarding and provide a better work-life balance than a traditional job.  

How can Splend help?

Splend specialises in PCO car solutions, enabling you to start earning even if you don’t own a car. Our flexible car subscription plans provide rideshare-ready vehicles with dedicated support to ensure your success.

The easy way to get kickstart your career

Check out our Flexi or Flexi own plans.

About Splend

At Splend, we believe in drivers. We know their vehicles need to work harder than most; that they drive more miles than most; that their insurance is hefty; their maintenance costs high and that they can face unreasonable finance rates – which is a heavy load to carry on their own.

That’s why at Splend, we exist to support rideshare drivers with a new model, that takes all those car ownership costs, and provides them for less, with lower purchase prices, better rates, lower servicing and insurance costs – all for one weekly repayment, all in one place.