Q. Consider the following statements regarding the “gig economy”:
1. Gig workers include self-employed, freelancers, independent contributors and part-time workers.
2. It is tech-enabled platforms connect the consumer to the gig worker to hire services on a short-term basis.
Which of the statements given above is/are correct?

[A] 1 only

[B] 2 only

[C] Both 1 and 2

[D] Neither 1 nor 2

Answer: C
Notes:
  • Gig economy can be defined as a work engagement where on one side, there is a service seeker i.e. a consumer with a demand for a specific task, and on the other side, and there is a service provider i.e. a gig worker who can perform that specific task.
  • A gig economy undermines the traditional economy of full-time workers who rarely change positions and instead focus on a lifetime career.
  • In this economy, tech-enabled platforms connect the consumer to the gig worker to hire services on a short-term basis.
  • Gig workers include self-employed, freelancers, independent contributors and part-time workers.
  • The digital gig economy generated a gross volume of approximately $204 bn from worldwide customers in 2018.
  • Transportation-based services contributed to over 50% of this value. The size of the gig economy is projected to grow by a 17% CAGR and generate a gross volume of ~$455 bn by 2023.
  • India has emerged as the 5th largest country for flexi-staffing after US, China, Brazil and Japan.
  • Haryana, Madhya Pradesh, Andhra Pradesh, Gujarat and Telangana have most opportunities in terms of growth for the flexi-workers.

Source: Source