The gig economy in 2025: Opportunity or disruption?

The gig economy has redefined work by offering flexible job opportunities through sites like Uber, TaskRabbit, and DoorDash. It is viewed as a disruptive matter to traditional employment by some, but it is seen by others as the new path to entrepreneurship.

Today, in 2025, it is more important than ever to understand both sides of the gig economy, as it is relevant for employees, policymakers, and businesses alike.

Understanding the gig economy

The gig economy is a labor market comprising short-term or freelance labor, often brokered by digital platforms. Digital platforms connect independent workers with customers who require services ranging from ridesharing and food delivery to personal chores and repairs.

Maciej Duszyński stated in his paper that there are 57.3 million freelancers currently in the United States. However, it is estimated that by 2027, this number will increase to 86.5 million.

Over 36% of U.S. workers participate in the gig economy through either their primary or secondary jobs. For 44% of gig workers, their work in the gig economy is their primary source of income.

For some, especially immigrants and those with limited formal schooling, the gig economy is a lifeline, offering cash-making opportunities without requiring resumes, interviews, or degrees.

Innovative opportunities: A new era of micro-entrepreneurs

In addition to the dangers, the gig economy also presents opportunities for a new kind of worker: the micro-entrepreneur. Here's why:

• Low barriers to entry: Many platforms do not require degrees, certifications, or substantial initial capital. A phone and a car (or at least a bicycle) can generally get one started.

• Schedule flexibility: Workers in gigs own their own time. That's especially valuable to parents, students, or individuals with other commitments.

• Self-management: Gig workers often view themselves as independent business owners. They decide where they work, when they work, and how much they work.

• Scalable potential: For many, gig work serves as a stepping stone for building a business. For example, a TaskRabbit handyman might develop a registered home services business at some point in the future.

• Skill development: Wage workers acquire valuable skills, such as time management, customer service, and digital literacy,  that can be applied to other areas of employment or entrepreneurial ventures.

• Entrepreneurial spirit: This is especially true among immigrant communities, who are likely to use gig platforms to establish financial security in a new country.

Disruptive threats: Challenges in the gig economy

Even as it creates jobs, the gig economy also presents new threats and uncertainties:

• Job security: Gig workers are classified as independent contractors and therefore don't have the same legal rights and benefits as employees. These would be health benefits, paid time off, and unemployment compensation.

• Uncertain income: Since most sites operate on a demand-based system, workers cannot always count on steady income. There can be highs one week and lows the next.

• Algorithmic control: The majority of gig workers undergo algorithm-driven performance reviews. This can lead to deactivations or fewer job offers based on standards they may not fully understand.

• Limited career growth: With no visible career growth plan in place, most gig work is stagnant, with minimal room for long-term growth or stability.

• Shortage of legal representation: Since gig workers are not considered employees, they have limited options for unionization and legal action in the event of issues.

• Burnout and mental stress: The hustle culture and pressure can take a toll on one's mental well-being, especially when paired with financial instability.

Millions of people still participate in the gig economy despite these problems, usually for the freedom it affords.

Looking forward: Is the gig economy sustainable?

As the gig economy expands, cities and states are beginning to establish policies that protect workers without stifling innovation. 

New York City, for example, implemented a minimum wage provision for app-based delivery riders in 2023, enabling them to earn a living wage. 

Delivery workers must now be paid at least $17.96 an hour before tips, according to the NYC Department of Consumer and Worker Protection, with some speculation that the minimum wage might be raised in 2025 due to inflation.

Other states and cities are trying out similar legislation. In California, Assembly Bill 5 (AB5) changed the status of some gig workers to employees, causing repeated legislative and judicial dissent.

These changes are a symptom of a growing realization that gig work is not a temporary phase, but rather a permanent part of the labor landscape. 

As more and more people become dependent on gig platforms, the need for decent treatment, predictable pay, and basic protections becomes increasingly urgent. At the same time, gig platforms themselves are evolving. 

Some are introducing new features to help workers, such as earnings projections, in-app health insurance, and better communication features. 

Others are collaborating with city officials and nonprofits to provide additional assistance, training, or access to low-cost equipment and transportation.

The gig economy is what you make of it

So, is the gig economy a threat or a blessing? To be honest, it's both. It's a real challenge, given the volatile income, lack of benefits, and limited protections. However, it also offers freedom, flexibility, and the opportunity to build something of your own.

For delivery drivers and other independent workers, success largely depends on how well you adapt and what tools you use. Regardless of whether you're navigating city streets, managing your own schedule, or investing in your own equipment, every decision matters.

In order to thrive and survive in the gig economy, remain informed, guard your rights, and be savvy. Take a look at Whizz for resources, services, and advice designed to make gig workers successful on their own terms.