Fintech can deliver answers for gig workers pushed to the brink
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In recent years digital platforms — such as e-hailing and delivery services — have made it possible for workers around the world to participate in the gig economy, providing a degree of formality and stability to their work. But Covid-19 has highlighted the fragile nature of work for people in the gig economy: with few benefits and protections, these people are hard hit by the crisis.
In a recent survey of 600 SA gig workers conducted as part of a year-long research project titled “The Digital Hustle: Gig Worker Financial Lives Under Pressure”, our research team found that three-quarters of the respondents experienced a decrease in income from March. More startling, 80% of gig workers now earn less than R4000 per month, compared with 16% before lockdown.
Some gig workers are affected more than others. E-hailing drivers were twice as likely as delivery workers to report a decline in quality of life, with 83% suffering a large decrease in income. Coping strategies among SA gig workers vary. Some have a financial cushion, but a majority live on the edge. If they lose their main source of income, 58% of respondents are unable to cover household expenses for a month without borrowing. Most have made sacrifices to cope with the pandemic and accompanying economic dislocation: over half have already reduced their household expenses, almost half have borrowed money, and almost three out of four had to rely on savings.
In the next six months nearly all respondents plan to restart or continue the work they were doing before the lockdown. However, the majority are concerned about the ability to earn an income, find work and cover day-to-day work expenses. For 80% of them, the health risk associated with returning to work is not a top concern. What they need is an income to take care of themselves and their families.
The study was the first step in helping fintech entrepreneurs connect with the people most in need of financial services and better understand their needs. As thousands of SA gig workers struggle to earn a living, there’s a growing debate about how fintech companies can build lasting solutions for this vulnerable population. Now we need to find ways to plan beyond the pandemic and create a better safety net for gig workers, including benefits and health care.
Imagine a post-Covid world where a street vendor can easily transition to a new ...
In a recent survey of 600 SA gig workers conducted as part of a year-long research project titled “The Digital Hustle: Gig Worker Financial Lives Under Pressure”, our research team found that three-quarters of the respondents experienced a decrease in income from March. More startling, 80% of gig workers now earn less than R4000 per month, compared with 16% before lockdown.
Some gig workers are affected more than others. E-hailing drivers were twice as likely as delivery workers to report a decline in quality of life, with 83% suffering a large decrease in income. Coping strategies among SA gig workers vary. Some have a financial cushion, but a majority live on the edge. If they lose their main source of income, 58% of respondents are unable to cover household expenses for a month without borrowing. Most have made sacrifices to cope with the pandemic and accompanying economic dislocation: over half have already reduced their household expenses, almost half have borrowed money, and almost three out of four had to rely on savings.
In the next six months nearly all respondents plan to restart or continue the work they were doing before the lockdown. However, the majority are concerned about the ability to earn an income, find work and cover day-to-day work expenses. For 80% of them, the health risk associated with returning to work is not a top concern. What they need is an income to take care of themselves and their families.
The study was the first step in helping fintech entrepreneurs connect with the people most in need of financial services and better understand their needs. As thousands of SA gig workers struggle to earn a living, there’s a growing debate about how fintech companies can build lasting solutions for this vulnerable population. Now we need to find ways to plan beyond the pandemic and create a better safety net for gig workers, including benefits and health care.
Imagine a post-Covid world where a street vendor can easily transition to a new ...
