The on-demand economy has seen significant growth, with drivers increasingly satisfied with their work-life balance.
- Since 2020, consumer buying habits have shifted towards at-home services, leading to a projected $335 billion market by 2025.
- A large proportion of drivers are working longer hours, with 74% satisfied with their work-life balance.
- Flexible work hours and job satisfaction are key reasons drivers choose this career path.
- Insurance and financial burdens remain significant issues for drivers in the on-demand sector.
Since the onset of the pandemic, there has been a marked change in consumer behaviour, favouring at-home purchasing options. This trend has spurred the global on-demand economy forward, with expectations of it reaching $335 billion by 2025. As a result, more workers are turning to driving for on-demand apps such as Uber and DoorDash, either as full-time employment or to supplement their income from other jobs.
According to a report by INSHUR, nearly 73% of these drivers now report longer working hours compared to the previous year, with 44% noting a doubling of their hours. Encouragingly, 74% of drivers express satisfaction with their work-life balance, with 38% declaring themselves very satisfied. This satisfaction often stems from the ability to maintain control over their schedules while enjoying job flexibility and interaction with people.
The appeal of driving within the on-demand economy is also linked to financial incentives, with 31% of drivers citing better pay compared to other available roles. However, the desire for flexible working hours is the predominant factor, particularly among drivers aged 35-44, who often have other life commitments such as parenting.
In regions like Memphis, the on-demand sector provides critical employment opportunities, especially for those who have been laid off. Approximately 15% of drivers reported taking up driving after redundancy, a number that spikes to 23% in specific areas. Despite the growth, challenges persist with insurance costs, which many drivers find burdensome. A large proportion, including 24% of rideshare drivers, report that insurance is prohibitively expensive, suggesting a need for improved insurance solutions from platforms.
Financial burdens also weigh heavily on drivers, particularly women. Significant proportions of female drivers, compared to their male counterparts, face home bills and rent as financial pressures. This economic reality makes driving an attractive option to meet these challenges, despite the additional cost of necessary vehicle insurance.
Dan Bratshpis, CEO of INSHUR, articulates the industry’s challenges and opportunities, highlighting the need for adaptive insurance products that cater to drivers’ unique conditions. This demand underscores the dual necessity of flexibility and financial control, as the on-demand economy continues to evolve.
The on-demand economy persists in its rapid expansion, though challenges such as insurance and financial stressors remain prevalent.
