Gig Economy Turns Germ Economy 😷

Gig Economy Turns Germ Economy

Imagine parking up at an airport terminal to pick up your next Uber passenger. You don’t know if she’s washed her hands, whom she’s met, or where she’s come from, but you need her fare to help pay your rent. Ride-sharing apps are becoming germ-sharing apps, but not everyone can take an unpaid leave of absence.

When there’s no harm in the way of drivers and riders, investors in gig economy stocks only see the sunny uplands of massive upside potential. However, this coronavirus exposes a risk. Gig economy companies divide opinion on health and safety standards for workers, and they could soon be subject to some damning regulations.

Some think gig economy contracts are just a new way to underpay workers and get away with providing fewer health insurances. The companies retort by reiterating; nobody is forced to take a gig if the math doesn’t work for them. But that’s only half true.

Circumstances can force workers to keep delivering and driving, such as an increasing rental bill, the costs of child care, or dare we say even an economic downturn.

As markets plummeted yesterday, Uber and Lyft were thrown out with the proverbial bathwater. However, investors quickly fixed up stock prices to reflect the Invstr community’s 91% bullish stance when headlines broke about some new labour policies.

A potential fund is about to be set up to compensate drivers affected by the novel virus. The details, such as whether workers are compensated before or after quarantine or infection, are expected this week, and everyone will be listening in.

If state politicians take kindly to the idea, Uber and Lyft could be spared stringent red tape in the future. That could allow their stocks to leave behind one of their biggest headwinds to date, and make initial public offerings easier for DoorDash and Postmates if they go ahead. Keep ‘em on your watchlist!

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Invstr app and web services are provided by Invstr Ltd. Invstr+ advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC). Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value. Vast Bank N.A. a nationally chartered bank and member of the FDIC, provides the banking products, including the products and services related to digital asset accounts. As with any asset, the value of Digital assets can go up or down and there can be a substantial risk that you lose money buying or holding digital assets. You should carefully consider whether trading or holding Digital assets is suitable for you in light of your financial condition. Your digital account does not support wallet to wallet transferring of your digital assets (i.e. cryptocurrencies) outside the platform. Any Digital Assets in your digital asset account are not insured by any government entities, including but not limited to FDIC or SIPC. The Invstr Visa® Debit Card is issued by Vast Bank, N.A. pursuant to a license from Visa U.S.A Inc and may be used everywhere Visa debit cards are accepted. Invstr Ltd, Invstr Financial LLC and Invstr Securities Ltd are subsidiaries of Marketspringpad Holdings (collectively “Invstr”) and Invstr is solely responsible for the application services and website content.

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