Venture Capital: (Coronavirus) How Gig Economy Companies Do NOT Flatten the Curve

March 17, 2020 | Latest News, News, Venture Capital
https://dailyalts.com/wp-content/uploads/2020/03/uber-eats-4709288_640-gig-economy.jpg

Gig economy workers such as Uber and Lyft drivers are a threat to efforts to control the spread of the deadly coronavirus contagion.

According to Edward Ongweso Jr and Jason Koebler, writing in Vice/Motherboard, gig economy companies are a public health risk. The business models of companies such as Uber (NYSE: UBER) and Lyft (NASDAQ: LYFT) depend upon workers characterized as independent contractors (not employees). This practice flies under the regulatory radar, and as a result, these hapless workers are generally uninsured, or at best underinsured. They work long hours, regardless of the risk from the coronavirus pandemic – to themselves, or their ride-hailers. (Vice/Motherboard)

Flattening the curve

One way to approach a pandemic like the coronavirus is to at least slow its spread. Therefore, at any given time the available health infrastructure can cater to the (lower) number of infected patients.

Think of the problem by replacing the hospital with an office toilet.

“Your workplace bathroom has only so many stalls,” tweeted Charles Bergquist, director of the public radio science show “Science Friday.” “If everyone decides to go at the same time, there are problems. If the same number of people need to go to the restroom but spread over several hours, it’s all ok.”

Therefore, by slowing a virus’ spread so that fewer people need to seek treatment at any given time, we have, in epidemiology terms, “flattened the curve.”

This is the strategy being employed for the coronavirus by the U.S. Centers for Disease Control and Prevention (CDC) who have recommended: “Social distancing” (essentially, avoiding other people whenever possible), working from home, and cancellation of events of 50 or more people.

#flattenthecurve on Twitter

Gig: NOT flattening the curve

Unfortunately, gig economy workers such as Uber and Lyft drivers, Grubhub and Seamless delivery drivers, and Instacart shoppers continue to work. They remain in contact with various touchpoints during their work cycle and are mobile, potentially potent carriers of the virus.

“Uber and Lyft are perfectly primed to be a vector for outbreaks as drivers are incentivized by sub-minimum-wages insufficient to last any period of self-quarantine, let alone to seek treatment, and as passengers are incentivized by cheap trips and fears of exposure in public transit,” warn Ongweso Jr and Koebler. “This is incompatible with what should be our prime objective: “flattening the curve” to minimize community transmission through social distance.”

Related Story:  Venture Capital: Reddit Co-founder Ohanian “@Initializes” Billboards in Times Square

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Alt Insights

January 29, 2020

Venture Capital: The Kobe in “Bryant Stibel & Co”

Venture Capital: The Kobe in “Bryant Stibel & Co”
Shape

Latest Alternative Investment News

Alternative Investments: Activists Will Get Busy Soon, Says Tim Melvin

As companies become more undervalued as the economy slows because of shutdown orders across the United States, I expect that the pace of activist activity to increase. We should see…

https://dailyalts.com/wp-content/uploads/2020/04/54e5d0424b54b10ff3d8997cc3213f771737c3e456597441702a7cd297_640.jpg
Private Equity: Active Triage Happening at KKR and Other Funds
April 2, 2020     News, Private Equity

KKR & Co (NYSE: KKR) has shelved a plan to sell Singapore-based Goodpack, a Singapore based shipping containers, and logistics services.  They had bids for the company that was said…

https://dailyalts.com/wp-content/uploads/2020/04/key-visual-kyash.jpg
FinTech: Kyash Closes $45M Series C Funding
April 2, 2020     FinTech, News

Kyash, a Japanese fintech startup aspiring to be a leading challenger bank, gained $45 million in a Series C funding. The round was co-led by Greenspring Associates and Goodwater Capital,…

https://dailyalts.com/wp-content/uploads/2020/04/dollar-1362244_640-mmfs.jpg
Liquid Alternatives: Investors Shovelled $677B Into Money Market Funds In Scramble to Safety
April 2, 2020     Liquid Alternatives, News

Investors set up a record-breaking first quarter this year for inflows into U.S. money market funds. These funds gained from the massive risk-off sentiment that prevailed as investors realized the…

Scroll to Top