As the so-called on-demand economy grows in popularity, some worry what impact it may be having on more traditional businesses. A recent study suggests that over one-fifth of Americans have worked in the on-demand economy, and many more have used it at least once. A look at the survey can begin to answer the nagging question: Will on-demand business models be the business powerhouses of the future?
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Forty-five million Americans, or 22 percent of the adult population, say they have worked or offered services in the on-demand economy, while 86.5 million, or 42 percent of the adult population, have used at least one on-demand economy service, according to a major national survey developed jointly by Burson-Marsteller, a global strategic communications and public relations firm; The Aspen Institute’s Future of Work initiative; and TIME. The survey was conducted by research firm Penn Schoen Berland.
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For purposes of the survey, participants in the on-demand economy, which is often called the sharing economy, are defined as having offered or purchased at least one of the following: ridesharing, accommodation sharing, task services, short-term car rental, or food/goods delivery. Penn Schoen Berland conducted 3,000 nationally representative online interviews among the general population across the United States from November 16–25, 2015.
The survey—the most in-depth opinion research study of workers and users of the on-demand economy ever conducted—is being released at CES 2016 in Las Vegas.
KEY FINDINGS:
- 51 percent of those who offer services in the on-demand economy (offerors) say their financial situation has improved over the past year, compared with 34 percent of the general population; 64 percent of offerors also expect their financial situations to improve in the next year, compared with 47 percent of the general population;
- 55 percent of offerors are members of a racial or ethnic minority, compared with 34 percent of those who have not offered on-demand services; 51 percent of offerors are under 35, compared with 31 percent of the general population; and
- 71 percent of offerors say working in the industry has been a positive experience; their main motivations include extra income (33 percent), a need for additional income (26 percent), flexibility (25 percent), and independence (25 percent).
While on-demand economy offerors express optimism about their economic lives, the survey did uncover concerns, including:
- 72 percent of workers say they should be given more benefits as part of their job; and
- 68 percent of workers say industry workers lack the financial safety net that other workers have.
Offerors are split over the trade-offs between independence and job security: Forty-three percent say they prefer the independence of the on-demand economy even though it may not have the same job security or access to benefits, while 41 percent say they prefer the security and benefits of working for a traditional company even if it might mean less flexibility. A narrow plurality of offerors (49 percent) say the on-demand economy should not be regulated, and companies should compete to offer workers fair pay and benefits, even if it means less security, compared with 40 percent who say the government should regulate the sharing economy to guarantee independent contractors the same benefits afforded to full-time workers, even if it means fewer jobs.
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“This new survey is the most in-depth study of workers and users of the On-Demand Economy ever conducted,” said Donald A. Baer, worldwide chair and CEO, Burson-Marsteller. “With nearly a quarter of Americans already working in the On-Demand Economy, and more than a third buying its services, it is clear the sector is playing a major role in the growth and direction of the United States.”
While most offerors engage in the on-demand economy on a casual basis, one in three offerors (14.4 million Americans) relies more heavily on this economy for income. Thirty-two percent of all offerors agreed with one or more of the following statements: They earn at least 40 percent of their income from the on-demand economy, the on-demand economy is their primary source of income, or they cannot find work at a more traditional company.
Tomorrow, more results from the on-demand economy survey, plus an introduction to our new research report, sponsored by SilkRoad, Recruiting Best Practices for 2016: New Research and Insights.