This is the end of Round One in the Local On-Demand Economy. Now the worker’s as important as the customer to a successful transaction, because every relationships is local. Wages will have to rise — as a share of total payment for a service, moving from the current 20 percent to 30 percent of fees for the marketplace to something closer to five percent. In the long run, these marketplaces are like credit card processing companies today, they handle transactions but don’t add much value for the worker, who is ultimately generating the revenue.
And wages at gig economy jobs have also declined in the last two years, the JP Morgan Chase Institute study finds.