Positives
• Flexible scheduling.
• Ability to work for multiple companies.
• Hourly pay can top $30 for more experienced workers.
• Freedom from the constraints of a 9-to-5 office job.
Negatives
• Income is unreliable and unpredictable.
• Pay can be insufficient (hourly average is $18).
• No health insurance, disability or retirement.
• Costs of job — such as mileage and car maintenance — is not reimbursed.
• Schedule dictated by peak demand on the app.
• Difficulty understanding tax obligations.
• Difficulty finding enough hours.
Source: The 2015 1099 Economy Workforce Report, by Requests for Startups
SAN JOSE, Calif. — Companies such as Uber and TaskRabbit have promised a new on-demand labor economy where workers are free from the restrictions of a 9-to-5 schedule and will still earn enough money to pay rent.
A recent report tells a more discouraging story about this growing class of contract workers — the thousands of people who work for on-demand tech companies as freelance labor and not regular employees. As the valuations and profits of these companies soar, few benefits are trickling down to the laborers, creating a workforce that lacks the security of employee benefits and struggles with financial uncertainty.
“These companies talk a kind of political correctness about the new economy and about making things fairer and offering people new opportunities, but they aren’t living up to it,” said Andrew Keen, a commentator on the tech industry and author of “The Internet Is Not the Answer.”
The report, called the “The 2015 1099 Economy Workforce Report,” referring to the name of the tax form for independent contractors, offers one of the first sweeping views of the conditions of contract labor across a broad variety of on-demand companies. Among the findings in an extensive worker survey: