The so-called "gig economy" is picking up steam... freelancers replacing full-time staff, companies focus on profits and shareholder value rather than hiring new permanent employees. With this type of work arrangement, geographically diffuse and independent workers are paid piecemeal for completing tasks -- facilitated by the connections from internet-based apps.
Amazon of course has Mechanical Turk, the original "piece work over the internet" freelancers platform. Another Amazon effort riffs on Uber: package delivery. Mechanical Turk is a platform where workers complete microtasks (such as transcribing, proofreading or answering surveys) for, many times, cents on the dollar. These internet denizens work on their own time and can pick up gigs on-demand.
But with the competition to taxis, Uber is really reshaping how the freelance economy works. People forget, in the U.S., most taxi companies retain drivers as 'contractors,' and require the drivers to pay for fuel, maintenance, etc. Regulation has come about to make a partially-public service (shared rides) more consumer-friendly (taxi meters, inspections, licensing). Tim O'Reilly says,
Regulation is not a good in itself. It is a means of achieving public goods. And so far, it is pretty clear that Uber and Lyft (and in particular, the competition between them) are improving the transportation options in American cities. Regulators should be using the opportunity to revisit the old way of doing things rather than trying to make the new conform to outdated rules that no longer serve their purpose...
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