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[LISTEN] The impact of COVID-19 on gig workers

30 July 2020 2:50 PM
Tags:
gig economy
gig workers

Azania speaks to global venture capital firm Flourish venture partner Ameya Upadhyay on their recent research.

A qualitative study by Flourish Ventures has detailed the experiences of gig workers, including those who use digital platforms such as e-hailing or delivery apps amid COVID-19 and the financial impact that pandemic has had on them.

More than 600 South African gig workers participated in the online survey during June 2020 which produced a number of key findings.

Some of the findings include:

  • 76% of respondents experienced a large decrease in income since March 2020.

  • Approximately 4 out of 5 workers surveyed now earn less than R 4000 per month, compared to 16% before the COVID-19 lockdown.

Global venture capital firm Flourish venture partner Ameya Upadhyay says coping strategies among South African gig workers have varied during this time.

Over half the gig workers have already reduced their household expenses. That's the first coping strategy, then almost half have borrowed money from friends and family. Three out of the four respondents also had some savings to rely on ... so these are some of the coping strategies workers are using but with these coping strategies, still 60 percent of them have less than a month of financial means.

Ameya Upadhyay, Venture Partner - Global venture capital firm Flourish

We found that many of them don't have a large financial cushion. For example, 58 percent of our respondents said that they could not cover household expenses for a month without borrowing if they lost their main income. So their savings and other cushions can only last a month at the maximum.

Ameya Upadhyay, Venture Partner - Global venture capital firm Flourish

While gig platforms have given workers a chance to formalise and increase their incomes, the reality is they are still living paycheque to paycheque.

Ameya Upadhyay, Venture Partner - Global venture capital firm Flourish

Click on the link below to hear more....




30 July 2020 2:50 PM
Tags:
gig economy
gig workers

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