Introduction
Freelance platforms are a marketplace for businesses and freelance workers from all over the world. They typically make money by taking a cut from both the employer and the freelancer. For the money they charge, these platforms provide a hassle-free and convenient business experience to both parties.
A gig economy is an environment where organizations contract with independent workers for short-term engagements and temporary projects. Instead of traditional full-time positions in a specific organization, ‘gig’ workers provide their services for one or more employers with flexible work arrangements.
The gig economy can benefit workers, businesses, and consumers by making work more adaptable to the needs of the moment and demand for flexible lifestyles.
A wide variety of positions fall into the category of a gig. The work can range from driving for Lyft or delivering food to writing code or freelance articles.
Table of Contents
Market Overview
The value of the gig economy market is forecasted to reach 455 billion U.S. dollars in 2023, comparing to 204 billion U.S. dollars in 2018.
With a total global workforce of around 3.5 billion, there are about 1.1 billion freelancers around the world.
The rise of this economy is closely connected to advances in technology and the trend of working remotely as so-called digital nomads.
Key Trends
Widespread automation will drastically change the tasks companies delegate to freelancers and how they complete that work. The question will be whether companies use automation in support of workers or workers in support of automation.
The stigmas associated with being a gig worker will fade away. As more workers—and more types of workers—join the gig economy, workers may wear their multiple lines of work as a badge of honor. Members of the gig economy may be seen as driven self-starters to the degree that their traditionally employed peers are not.
Key Market Players
Some of the leading players in the secondhand apparel market are Fiverr, Upwork, Freelancer.com, Envato Studio, PeoplePerHour, Toptal, Guru.com, DesignCrowd, Nexxt, DesignContest, TaskRabbit, etc. Gig platforms increase access to new, high-tech skills and sorely needed workers of many types who are difficult to source through traditional labor markets. Online freelancing platforms are helping companies tap into a respected knowledge-based economy all around the world.
Growth Drivers and Challenges
Digital platforms allow freelancers to swiftly connect with employers to find more assignments, market their skills, manage various clients and accept secure payments.
Workers are expressing an increasing demand for autonomous and flexible work. This is particularly evident amongst youth, signaling a generational shift towards greater freedom and entrepreneurship.
The demand for financial freedom is driving the freelance economy. Workers are not tied to incremental salary increases or limited to how much they can make. Depending on the industry, the sky is the limit.
Despite the opportunities, there are some challenges that remain. Networking takes a hit in freelance mode. Networking with people via email is relatively harder, and people who like working within a well-defined team will not consider freelancing.
Too much flexibility is one of the core disadvantages of freelancing. In order to be a successful freelancer, one needs to put in a dedicated number of hours into disciplined work. Not defining work hours can result in a loss of focus, productivity, and ultimately money.