Gig workers grapple with ‘unsustainable’ business models amid COVID-19

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Gig workers grapple with ‘unsustainable’ business models amid COVID-19 GlobeBusiness

Foodora Canada’s managing director David Albert has said the company was faced with “strong” competition in the Canadian market and was “unable to get to a position which would allow us to continue to operate without having to continually absorb losses.”

“Maybe there’s a situation there where firms will rely more on non-salaried employees,” said Pedro Antunes, the Conference Board of Canada’s chief economist.Story continues below advertisement This month alone, Airbnb shed 1,900 jobs, or 25 per cent of its staff, Uber said goodbye to 3,700 workers – about 14 per cent of its workforce – while at Lyft there were 982 layoffs and 288 furloughs.

Estimates suggest gig workers amount to between 3 and 8 per cent of the country’s workforce, but verifying that is tricky, said Judy Fudge, a labour professor at McMaster University. Studies showed it creates significant improvements in people’s standards of living and didn’t cause them to flee jobs because they were guaranteed money.

 

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