How California regulate company in Gig Economy Essay Sample

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Gig Economy in California
The gig economy continues to significantly impact California’s market. Digital technologies revolutionize its retail marketplace today, which has led to the rise of on-demand commerce. Smartphone applications and internet-based platforms enable consumers of on-demand services to be matched with service providers. These collections of markets make up California’s gig economy which can be defined as a type of market system that connects service providers to prospective on-demand clients or companies with the help of digital solutions. The digitization of the economy continues to drive California’s growth because of the expansion of on-demand services that creates more job opportunities for potential gig workers (Donovan et al. 1). Digital-based platforms found in California such as Uber and Lyft allow workers to enter into formal agreements with companies to perform a specific job after which they are compensated. The pricing in an economy may vary as some companies may set the price or allow the service providers to set it. The gig economy is active in various sectors such as hospitality, healthcare, delivery services, or business services. However, an individual contractor driver isn’t classified as an employee of a gig economy company they drive for. So, they are not entitled to the same benefits as the company’s employees (Donovan et al. 2). Working in the gig economy is unprofitable for contracted drivers in California because they will experience financial instability in the long term.
Pros of the Gig Economy
For an individual contractor driver, working in California’s gig economy can offer several benefits. First, it offers them flexibility where the driver can choose the companies to work for, set their schedule, and choose the jobs to apply to. With time, they can build their reputation by offering reliable and exceptional services consistently to clients which will ensure they receive higher ratings for their services. When a gig worker continues to receive positive reviews from companies, they have the opportunity to get the job that best suits their interests and they can enjoy their job improving their work-life balance. The internet-based platforms give them greater opportunities to connect and find jobs with various on-demand companies.
Second, an individual contractor driver can enjoy greater independence in California’s gig economy. They can use their car in a way that suits them best and don’t have to be controlled by a company. If they are hired for any job, they will execute the task following their conditions. This is because the company can’t control the hours or routes they will use. They can also work for other companies. Fourth, a contracted driver in California’s economy has access to a variety of jobs. California’s economy brings together a diverse set of on-demand companies for the driver to choose from. Their job isn’t limited to only a single company where they may have to do monotonous jobs daily. Being in the economy offers them the opportunity to do different driving jobs with varying levels of difficulty such as transporting clients over long distances or driving in unf...