How often do you see Deliveroo cyclists gliding by in a flash of blue, sleek Uber taxis awaiting passengers or Uber Eats cyclists hastily collecting food for their next delivery?

Chances are you see them a lot – especially if you live in the city.

The gig economy has grown significantly in the UK over the past few years and is predicted to be worth around £9bn by 2025, according to the PwC.

Gig workers are not employed under a permanent full-time or part-time contract, nor are they paid hourly. Instead, they work flexibly under short-term contracts and are paid for each job (each ‘gig’) they complete, such as a food delivery journey or taxi ride.

Some notable companies which are heavily reliant on gig economy workers include Uber, Deliveroo, Hermes and Just Eat, and these companies have roughly around 1.1 million individuals working for them.

This is a noteworthy amount when you consider the fact that these organisations haven’t been in the UK for long and the widespread controversy surrounding the working conditions in such jobs.

Who works in the gig economy?

According to a report by the TUC, only one in 20 white people work in the gig economy, against one in 13 for ethnic minority workers.

The report also unveiled that over the past five years the number of black (African and Caribbean) people in temporary work has risen by 58%. Overall, the TUC found that non-white people were three times more likely to be in temporary work or on zero-hour contracts in comparison to white people.

Frances O’Grady, the TUC General Secretary, commented on these results “Black, Asian and ethnic minority workers are being forced into low-paid, insecure work. We need a real national strategy to confront racism in the labour market”.

She added that this sensitive issue is only “getting worse”.

Why is this the case?

Last year, the Joseph Rowntree Foundation carried out an in-depth review into poverty in the UK and found that amongst working-age ethnic minority groups, Bangladeshi, Pakistani and Black African citizens were the most likely to be living in poverty.

These figures were derived during a time when the UK was experiencing a record boom in employment rates, and this was impacted by the gig economy in many ways.

Many unemployed individuals will be lacking in skills and experience, which makes them more likely to partake in informal and low-skilled laborious jobs (i.e. the gig economy). This in turn means they are no longer classed as unemployed, consequently improving the UK’s employment rate. But are they really achieving job security and financial stability as a result?

One former Deliveroo rider told the Guardian in 2016

“I think Deliveroo want to manufacture this image that we’re all young, middle-class men who wear trendy clothes, making a little extra cash. But a lot of the couriers are migrants, or working-class people from the local area”, adding that the “majority are doing it full time because they need the money”.

(The Guardian, ‘The truth about working for Deliveroo, Uber and the on-demand economy’, by Homa Khaleeli).

A major report by the Migration Policy Survey revealed figures stating that as many as 95% of male European migrants find work almost immediately upon arriving in the UK, and many British employers in the gig economy were quick to cite an excellent work ethic as one of their best qualities.

Further research by the CIPD shows that 35% of employers in lower-skilled industry firms seek to hire EU migrants as it is becoming increasingly difficult to get UK-born workers to fill these vacancies.

The ignorant argument that “migrants are taking jobs from Brits” is deeply flawed and inaccurate in so many ways, with the above evidence proving this empirically.

Mark from PeoplePointHR has commented “It’s difficult to make conclusions on such an extensive issue without appearing to stereotype, but does it not seem obvious that many migrants are simply more willing and grateful for work that might be shunned by UK citizens?2

What is it actually like working in the gig economy?

On paper, the gig economy is a great idea for busy individuals looking to earn some extra cash in their spare time. Many workers who have perhaps fallen on hard times will be lured in by the façade of flexibility and not having a boss to answer to, made only more appealing  by the lack of required experience or qualifications.

Unfortunately though, the reality of working in the gig economy is somewhat different.

The main issue surrounding the gig economy is the lack of employment law protecting the workers, as it’s not uncommon for employers to class their workers as ‘self-employed contractors’. By doing this, employers are able to dodge their responsibilities relating to sick leave, holiday pay, and many other benefits only offered to employees.

The issue of low pay is also concerning as this is essentially what causes poverty amongst working adults. Gig economy workers tend not to be paid hourly like standard employees, but rather per job they complete.

Deliveroo couriers, for example, reportedly make about £3.75 per delivery, which might sound reasonable if you were to work non-stop for many hours a day, but realistically the work flow can be hit-or-miss – as it is with all gig economy work.

There is also the fact that Deliveroo riders are expected to pay for their own equipment (a branded jacket, a thermal bag and a branded courier box) which costs roughly £100.

Riders must also fork out for their own insurance, as Uber drivers must also do. Firms such as DPD and Hermes also charge their couriers separate fees which then come out of their wage (expenses for tax, fuel, VAT etc.). In some drastic cases, couriers are charged up to £150 when they are unable to work a shift or find cover.

Imagine you are starting out in one of these roles with the intention of it being your main source of income, only to learn that you must first pay a hefty sum in order to join the company, and likely face penalties if you are ever unable to work. Does this sound like flexibility to you?

What is the Taylor Review?

Matthew Taylor is the Chief Executive of the RSA, and for many years now he has been dedicated towards improving the working life of employees in the UK. His most recent (and incredibly exhaustive) report; “Good Work: The Taylor Review of Modern Working Practises” addresses the key issues associated with modern-day employment.

The report makes crucial recommendations which, if implemented into UK law, would work towards making “all work in the UK economy fair and decent with realistic scope for fulfilment and development”.

More specifically, the review proposes that gig workers (such as Uber drivers and Deliveroo riders) should be classified as employees and therefore entitled to additional benefits and protections.

Mr Taylor commented that “there are too many people at work who are treated like cogs in a machine rather than human beings”.

The government has responded positively to the Taylor Review, promising to take the plans forward with four separate consultations. There has been no mention of immediate changes to employment law, however, it is safe to say the Taylor Review has caused a long-awaited stir and its content will not be easily forgotten.