A recent study by Gridwise reveals a concerning trend among gig workers in 2024. Despite working longer hours, these workers experienced a decline in earnings across various platforms. The report highlights the challenges faced by those employed in ride-hailing, delivery, and shopping services, shedding light on the competitive nature of the gig economy and its impact on worker income.

Diminishing Returns for Gig Workers

In 2024, gig workers found themselves working more but earning less. According to the Gridwise analysis, which examined 171 million trips and $1.9 billion in earnings, drivers and delivery personnel saw their incomes drop despite increased working hours. This shift has raised concerns about the sustainability of gig work as a reliable source of income.

The data shows that Uber drivers, for instance, earned 3.4% less in weekly pay, averaging $513 per week, while working 0.8% more hours. Similarly, Lyft drivers faced a steeper decline in pay, with a 13.9% reduction to $318 per week, even though they worked fewer hours. Instacart shoppers also saw an 8% decrease in weekly earnings to $194, accompanied by a slight reduction in working hours. These findings underscore the growing competitiveness and financial strain within the gig economy.

Varied Outcomes Across Platforms

While most gig workers struggled with lower earnings, some platforms showed different trends. DoorDash workers, for example, saw a modest increase in gross weekly earnings by 4.8%, reaching $240, although their hourly rates fell due to longer working hours. Amazon Flex workers experienced a significant rise in weekly earnings by 18.1% to $413, but this came at the cost of a 20.4% increase in working hours. Favor, owned by H-E-B, was the standout platform where workers earned more ($155 per week) while working fewer hours (down 13.1%).

The disparity in earnings across platforms reflects the varied strategies and market conditions influencing gig work. For instance, tips played a crucial role in supplementing earnings for delivery workers, accounting for over half of restaurant delivery workers' income and nearly half for grocery delivery workers. Ride-hailing drivers, however, relied less on tips, with only 10.4% of their earnings coming from gratuities. Despite economic pressures and inflationary impacts, consumers continue to view the pricing of these services as reasonable, suggesting ongoing demand for gig-based services. Gridwise's CEO, Ryan Green, noted that consumer behavior does not align with price sensitivity, indicating a strong reliance on gig services regardless of cost fluctuations.