Sharing: Gen. Z and Millennials lead the way as more than a third turn to gig economy to supplement primary income. Individuals are increasingly turning to the “sharing economy” to help supplement and enhance their primary income, according to a study conducted in October 2018 of more than 1,000 UK consumers by global consulting firm AlixPartners.
16% of respondents have participated in the sharing economy to generate further funds to supplement their full time employment. Generation Z (aged 18-25) and Millennials (aged 25-35) lead the way, with 40% and 31% respectively participating. Just 3% of over 65s and 6% of the Baby Boomer generation (aged 56-65) have participated.
The types of services gig economy participants provide vary with age:
– Renting rooms or entire houses via services such as Airbnb are the most popular sharing activities, with 19% of 18-25 year olds and 12% of 26-35 year olds having done so.
– The largest cohort participating in part time driving services such as Uber are Millennials, with 14% having done so
– While 16% of Generation Z have delivered goods for services such as Deliveroo, the most out of any age group
Adoption is coming across income groups, notably with 16% of those earning between £60K-£80K supplementing their income by driving for a service like Uber. This is also the income range that has the highest percentage of individuals who have delivered goods for a service like Deliveroo (6%), and that has offered services through providers like Checkatrade (6%).
Dan Coen, a Managing Director in AlixPartners’ Retail and Consumer practice, said: “The younger generation are diving head first into trialling different aspects of the gig economy. The ability to almost instantly create additional income via the participation in services they have grown up with and trust as users holds clear appeal. What is perhaps most striking is that those who are more affluent are increasingly leveraging already owned assets, like cars and houses, to bring in extra income.
This demonstrates just how important and integral the gig economy and casual working is becoming in everyday life, particularly in times of economic uncertainty and stagnant wage growth. As more and more companies look to casual workers to power their service provision, adding that last “analogue mile” to their digitally-enabled business model, they can be assured that there is a sizeable, and we predict growing, workforce in the UK.”
AlixPartners is a results-driven global consulting firm that specializes in helping businesses successfully address their most complex and critical challenges. Our clients include companies, corporate boards, law firms, investment banks, private equity firms, and others. Founded in 1981, AlixPartners is headquartered in New York, and has offices in more than 20 cities around the world.