Gig Economy Fragile As Remote Work Derails Uber, Getir

Uber CEO Dara Khosrowshahi said during a recent earnings call that remote work has negatively impacted the company’s operations.  

According to a report published by The Street, Khosrowshahi pointed out that the pandemic caused a sharp decrease in regular commuters — which has severely affected Uber’s core customer base.  

However, with more employees returning to office settings, Uber is reportedly witnessing a resurgence in customer activity.  

According to a recent financials report published by Uber, the company saw a 21% increase in daily trips over the previous year, with mobility gross bookings surging by 25% year-over-year to $18.7 billion — despite a slight dip from the previous quarter. 

Ride share companies, which have traditionally benefited from the legal status of gig workers, have come under fire in recent months with a slew of court cases in Europe, the U.K., Australia, and in the U.S.  

According to a report published by Business Insider, an initiative known as PayUp, which was implemented in Seattle, Washington in January, mandates that delivery apps like DoorDash, Uber, Instacart, and Grubhub compensate their independent contractors at a rate equivalent to the city’s minimum wage of $19.97. 

One gig economy giant, Getir, is also facing dire challenges and has announced it will downsize operations globally after its rapid expansion during the pandemic.  

According to a report published by Tech Crunch, Getir has decided to withdraw from the U.S., U.K., and European markets to focus on its operations in Turkey — affecting over 6,000 jobs.  

The company reportedly struggled with the costs of maintaining its business model, which promises ultra-fast delivery but proved unsustainable due to high operational expenses and eroding profit margins.  

This retreat from international markets by Getir highlights the volatile nature of the gig economy. The strong opposition against what is mainly ride share giants and delivery companies were influential in Getirs decision as well. 

Companies that hire gig workers are facing increasingly harsh regulatory pressures, and on top of that, changing consumer behaviors based on the rise of flexible work opportunities.  

The outcome of some of these legal challenges could lead to more sustainable practices and potentially a redefinition of what gig work is, but it may also involve completely transforming the current business models at many companies in this sector.