Uber lost an Employment Tribunal over the employment status of its drivers.
McKinsey published an excellent piece of research
on employment opportunities in the gig economy. While 70% of gig economy workers in Europe participated out of choice, 30% participated out of necessity. So while expanding labour force participation (a good thing), gig work also identified that
key challenges still must be addressed for this shift to be a feasible and satisfying development for workers. Issues such as benefits, income-security measures, and training and credentials offer room for policy makers, as well as innovators and new intermediaries, to provide solutions.
It isn’t just gig work, of course. Entrepreneurs often focus on their solution without regard to external forces, like consumer protection or regulation. Just this week, three stories that in some way draw attention to this:
The big challenge is to find the Goldilocks zone of regulation. Enough to foster and support innovation, and protect consumers and civil society. But not so much as to protect entrenched prejudices or interests. Seems law and politics still matter.