In this Covid era, people are switching jobs for a multitude of reasons, as we examined in a previous blog. Today, we will look at the pros of one of the more popular choices, working in the gig economy, from shopping to riding and delivery services. In the future, we’ll go through the cons of working these kinds of jobs, so make sure to come back here before making your final decision!
What is the Gig Economy?
The gig economy is defined as “work that uses a digital platform to connect a customer with a freelancer for a short-term service.” Of course, Uber and other ride-sharing apps are part of the gig economy, but also Instacart, the restaurant food delivery services, and so on. The interesting thing about this classic definition is that increasingly, courts worldwide are ruling that these independent workers are actually employees and not freelancers, and they are entitled to the benefits and security that an employer-employee relationship affords.
Here in Canada, the Supreme Court has cleared the way for a class-action suit against Uber for the right to be considered employees, and as recently as October 21, 2021, the workforces of several major gig economy companies came together to demand that the Ontario government make changes to the law to give them more benefits and protection.
For the purposes of this article, we will consider gig economy workers as independent contractors, but keep in mind, if you’re considering switching to this kind of work, how you’re classified may change in the very near future.
The Pros of Working in the Gig Economy
Here’s our list of the positive reasons for working in a gig economy job.
1. There is a need for drivers in many places
It’s always nice to work in a job where you’re wanted, and in this case, drivers, in particular, are in high demand. Since people are now less confined, the US-Canada border is open and people are more protected from Covid, provinces like Quebec are desperate for gig workers. Last summer, Uber was offering some new drivers a cash bonus for coming on board, with a wage of about $28 per hour, before the company’s percentage is applied (more about that next week). Check your city for incentives from various gig economy companies, especially as the (hopefully) busy spring and summer seasons begin.
2. Freedom and flexibility
Among the many lessons we learned from being confined to our homes during Covid: not going into the office 9-5 is a dream. Also, not sitting in endless meetings, not sitting in traffic or on a crowded metro or bus twice a day, and deciding for yourself when and how you get your work done. But now that things are slowly returning to a new normal, including going into the office, the gig economy lets you maintain your independence and avoid the cons of office life.
Here, you decide when you want to work. Early morning, late at night, it’s all possible. Same for weekends. You may also have the option to choose where you want to work. Close to home? Downtown? That too is up to you. And you’re free to say no thanks, something that many long-term employees are grateful for. This independence is a big pro for many who choose this kind of work.
3. Side-hustle
Because you have so much freedom, as described above, this means that the gig economy is the perfect side-hustle. You can fit this work into your day (or night). Whether you slip in a few hours or a whole bunch, it is up to you. The extra income is certainly welcome, often needed, for many. Students, part-time workers, older workers, etc. can earn money in their spare time. Some enjoy the contact with the public, whether you drive or deliver, especially after the confinement of Covid.
4. Easy to get going
It’s relatively easy to become a gig economy driver in Canada and that is a big pro for many people. You can use your car, your bike, your scooter or even walk in some places.
To be an UberEats driver, for example, if you use a car, you will need a valid license and insurance, a relatively new car (newer than 20 years old), be at least 21 years old, proof that you’re eligible to work in Canada and approve a background check. Rules may vary by province. To deliver on foot (if available in your city) or by bike, you have to be 18 or 19 depending on the province, and approve the background check.
To be an Instacart Shopper (not available in Quebec), you must be 18, have a valid driver’s license and insurance, have a social insurance number and be eligible to work in Canada, a phone with the Shopper app, be able to lift 25kg of groceries and pass the background check.
Since it’s easy to qualify, you can be up and going in no time!
5. Variety of the day
Every day will be different for you, whether you are shopping for a customer or delivering meals. Many people enjoy being out and about, as opposed to sitting in an office, and the fun of not having two days be the same.
6. Additional income
And finally, money! The more time you put in, the more money you can make, both from your base pay and tips. Being an Instacart shopper can bring in a reported $25,000 a year. For food delivery drivers, it varies widely depending on where you live, how often you go out and how far you go per order. It’s estimated at anywhere from $32,000 per year to far higher. But certainly this is not the case for everyone. Check in next week for our Cons of working the gig economy article.
The Takeaway
What is not to like about freedom, flexibility and cash? Not too much, say the tens of thousands of workers already a part of the gig economy. At LegalShield Canada, our law professionals can help you with your taxes—as an independent worker, there are many rules to follow—and we can advise you on keeping your driving record clean and help you if you receive tickets or are involved in an accident.
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