Friday, July 17, 2015

Who Benefits from the Collaborative Economy?

Driving around Friday morning I listened to a re-aired interview Brian Lehrer of WNYC public radio did with a co-founder of Zipcar, Robin Chase, who also wrote Peers Inc: How People and Platforms Are Inventing the Collaborative Economy and Reinventing Capitalism. 

Chase advocated for greater freedom for companies such as Uber to operate without governmental oversight. In areas such as hiring drivers, she suggested, vetting their backgrounds was a task better suited to private companies than government. Answering one caller’s question about the lack of full time work and benefits these New Tech Age companies provide, Chase contended that large employers such as Wal-Mart and McDonald’s were already staffing part-timers as a means of keeping a tight lid on benefits and wages. She argued that working for one employer full time was an outmoded form of labor, that it was better for workers to juggle several jobs and thus attain greater control over their lives. They would be cushioned against loss of income if their job with that one employer disappeared. 

Sounds reasonable, until you look behind the part-time work trend. Companies use labor scheduling software to predict appropriate staff levels weeks in advance. Workers typically are hourly wage earners. Shifts are assigned, usually with no recourse to alter them. Assuming the worker has two or more part-time jobs to earn anywhere near a living wage for his or her family, it would not be unusual to work more than a standard 40-hour week. What’s more, the worker would need a spreadsheet to manage the hours demanded by different bosses. And, should a family need or emergency arise, imagine the mayhem required to alert and assuage the conflicting interests of multiple employers.

Yes, the Collaborative Economy is making millions, even billions, for entrepreneurs like Chase. But it is transforming America and other countries into polarized societies of Haves and Have Nots. 


Zipcar is making personal transportation affordable to those who cannot or do not want to buy or lease a car. Chase should be commended for being part of that revolution. But suggesting that the life of a multi-employed worker, responsible for his or her own benefits, is better than a full-time job is irresponsible and elitist.