The Gig Economy Squeeze: Why Drivers Are Earning Less and Seeking Alternatives
Many gig drivers for platforms like Uber, Lyft, and DoorDash report that their work has become less profitable over
Many gig drivers for platforms like Uber, Lyft, and DoorDash report that their work has become less profitable over time. Despite this, they find limited alternative job options that offer comparable flexibility and compensation.
A study by Gridwise Analytics found that in 2023, Uber Eats drivers experienced a 15.4% decrease in average monthly earnings, while Instacart shoppers saw an 8.3% reduction. (Business Insider Africa)
In response to declining earnings, some drivers have started their own ride services, offering private rides to clients outside of the traditional gig platforms. (Business Insider)
Additionally, some drivers have resorted to asking riders to pay them directly in cash or through payment apps like Venmo, bypassing the gig platforms’ fees.
The challenges faced by gig drivers highlight the difficulties in finding alternative employment that matches the flexibility and income potential previously offered by gig platforms.
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