If you’ve been following the TTL blog, you’ll know we’re very vocal about the gig economy. Last month, we examined the introduction of Assembly Bill 5 in California, and two weeks ago we released our newest trends report “Remote Work Platforms: Trends in Temp Labor Marketplaces.” Today, we’re discussing the launch of Uber Works, a job app created by the ridesharing giant, which aims to connect agency workers to available shifts.Is @Uber expected to disrupt and dominate the #StaffingIndustry next? See what's next in @TalentTechLab's latest article on the #GigEconomy: Click To Tweet
Does this mean Uber will disrupt the industry and dominate? Our Director of Research, David Francis weighs in on this big announcement.
“Uber’s foray into the world of staffing is a very notable development. They’ve curated a massive labor pool, and I suspect the main reason they’re getting into staffing is to give its driver partners more work options when demand for drivers is slow. Driving demand is inherently variable (i.e. why there is surge pricing), and when demand is low and drivers are sitting in their cars twiddling their thumbs, Uber would like to have the ability to offer other kinds of work. It also diversifies their business and offers new growth opportunities/revenue streams outside its core mobility business.
The inevitable question incumbents will ask is “will Uber disrupt the staffing industry?” The short answer is no (at least not in the foreseeable future), as it will face the same challenges others before them have experienced (e.g. IAC/BlueCrew, Shiftgig, etc.), namely the need for a massive sales/account executive team, a deeply-rooted incumbent supply chain that will aggressively defend itself, statutory requirements, and the difficulty managing/supporting non-homogenous work solely through a tech platform. That said, Uber is no mere startup, and I suspect they will ultimately be successful in capturing a significant chunk of the market, though how long that takes remains to be seen. I’m impressed with their decision to approach the market compliantly (by partnering with incumbents to handle statutory requirements), which suggests they’ve done their homework and are in it for the long term.”
What do you think? Email your thoughts to firstname.lastname@example.org. Want to learn more about the gig economy? Click here to download the latest trends report–Remote Work Platforms: Trends in Temp Labor Marketplaces.