Independent work: choice, necessity, and the gig economy


The majority of independent workers provide labor services



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The majority of independent workers provide labor services
SOURCE: McKinsey Global Institute analysis 
NOTE: An individual may participate in multiple forms of independent earning; therefore the three categories sum to greater than the total population of 
independent workers. Diagram drawn to scale based on the United States.
Responses from MGI Survey
% of working-age population (absolute number, million)
26% (64)
25% (85)
3% (8)
4% (13)
1% (2)
2% (6)
Providing labor
Selling goods
Leasing 
assets


35
McKinsey Global Institute
Independent work: Choice, necessity, and the gig economy
Digital platforms for independent earners are varied
We consider three types of platforms for independent work (Exhibit 8):
 
ƒ
Platforms for labor services.
 This category includes online marketplaces and mobile 
apps that match individual workers with customers (whether companies or individual 
consumers) who want their services. Some of these platforms, such as Upwork, 
Thumbtack, Freelancer.com, HourlyNerd, and Freelance Physician, specialize in 
professional services. Others, such as TaskRabbit and Care.com, offer household 
services and errands. Transportation apps such as Uber and Lyft have introduced new 
innovations, using search tools, GPS technology, and the size of their network to offer 
rapid service from the provider closest to their location. While some of the companies in 
this latter category offer an array of services, many specialize in one particular offering, 
such as Instacart and Deliveroo for food delivery, FlyCleaners for laundry, and DogVacay 
for dog-sitting. While the “on-demand” economy has a high profile thanks to the global 
expansion of Uber and Lyft and the proliferation of companies using similar models, it 
is important to note that platforms providing instant, in-person fulfillment constitute a 
relatively small subset of digital labor platforms. 
 
ƒ
Platforms for selling goods.
 We include selling goods in our broad definition of 
independent work because it offers another way for individuals to earn money outside of 
a traditional employee role—and because the act of selling goods entails time, work, and 
resources. E-commerce marketplaces are not just for large merchants; they also offer 
individuals a chance to participate, taking advantage of a built-in global customer base, 
payment systems, and logistical support. Individuals can resell goods or sell products 
of their own making. Platforms such as eBay sell a full range of merchandise, while 
others offer a specialized assortment. Sellers on Etsy and DaWanda, for example, offer 
unique, artisan-made crafts and vintage items; small farmers sell their produce directly to 
consumers on the French platform La Ruche Qui Dit Oui! 
 
ƒ
Platforms for renting out assets.
 Platforms such as Airbnb have given rise to the 
sharing economy model—that is, they allow individuals to make money by renting out 
temporary use of their own assets. This could be a vacant home or a spare room (Airbnb, 
VRBO, HomeAway, FlipKey, onefinestay), an underutilized car (Getaround, SnappCar, 
BlaBlaCar), photo and video equipment (KitSplit, ShareGrid), previously worn fashion 
(Rentez-Vous, Rent the Runway), and even yachts (Boatbound).
It is important to note that not all work facilitated by digital platforms is actually independent 
work. Some companies that use similar technology and interfaces for customer interaction 
do not enlist independent workers; they hire traditional employees. This business model has 
been adopted in whole or in part by companies such as Redfin, Instacart, Managed by Q, 
and Hello Alfred. Their rationale is that the employee model will reduce turnover and create 
more consistent customer service.
36
 Some digital platforms connect independent workers 
with projects and assignments that grow into longer-term, more direct relationships that 
eventually cease to rely on the original platform where the connection was made. 
36
  See, for example, Nick Wingfield, “Redfin shies away from the typical start-up’s gig economy,” 
New York 
Times
, July 9, 2016, and Davey Alba, “Instacart shoppers can now choose to be real employees,” 
Wired

June 22, 2015.


36
McKinsey Global Institute
1. Sizing the independent workforce 

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