The Gig Economy Today
When it comes to the gig economy, it is easy for independent contractors to pick and choose which platform they want to work on and which gig jobs they want to accept. Based on our internal driver network survey conducted last September, 47% of our driver-partners said they were on two or more gig applications simultaneously.
To partner with independent contractors, businesses need to think of the following:
- What sets your gig app apart from the rest?
- What encourages these drivers to choose the job that came through your platform vs. your competitors?
- How are you putting your business in the position to win the solopreneur?
Ultimately, what it always comes down to is perks and money. Start prioritizing the driver’s earnings and time. Below are 5 ways companies can get a jump start on prioritizing the gig workers’ earnings to gain their partnership.
Don’t Over Schedule
Though drivers on most app platforms can show as “available”, a lot of companies still over schedule several drivers to commit to time slots to ensure they have drivers to cover the orders coming in. If you’ve been in business for a few years, chances are you have data you can pull to look back on trends or forecasting. As your company grows, so will the number of orders which will naturally grow your driver count. However, having too many drivers on a given shift can really drive down earnings for the independent contractor.
If the orders aren’t readily available, then retaining the drivers will become even more difficult. Generally, companies tend to staff up during the peak rushes and staff way down during the lulls. (Example: if you’re a restaurant delivery company you’ll want to have more drivers from 11am-2pm and less from 2pm-4pm). If orders are minimal, consider an incentive to give the driver on shift during the slow time. The goal here is to make sure the drivers are making over wage-n-hour.
Routing of Orders
More and more companies are starting to add bulking options to make routes more efficient. However, there is also now technology that can help companies with route optimization. For example, companies like Radaro can pull up all the last mile stops assigned to a driver that day and plot on a map the best route available, allowing the driver to take on more jobs which allows them to make more money!
This may seem simple, but these workers are independent contractors, they make their money on a per-job or per-drop basis. Making it easier and more efficient for the customers to tip encourages the drivers to stay connected to your app. For example, when you place an order, have your app automatically suggest tip amounts to the customer, and not low ones but realistic ones to get the drivers to accept the orders. Offering suggestive tips is a great way to motivate drivers to apply and stay active on an app. We’ll get into daily pay shortly, but if you’re a small business, you might want to consider cashing out driver’s credit card tips nightly as another incentive for independent contractors looking for fast cash.
Uncontrollables are more frequent than expected, but are you considering the drivers in some of these situations? Things such as canceled orders, customer mistakes, bad addresses – all lead to rerouting, weather conditions, or even bad areas. These can all affect your platform’s driver retention. Providing the drivers more per delivery on a stormy night or offering them a few bucks for cancellation not only helps retain drivers but also nurtures a better culture. These drivers are a community, they all talk, the better press you have on these platforms the more drivers will come your way.
Earlier, I alluded to route optimizations; this technology is around banking. Working with the right banking partner that can help you scale and adapt to this ever-changing gig world is vital. When it comes to gig workers’ earnings and their pay, they’re wanting their money faster and faster. Having the ability to offer drivers’ weekly pay or any kind of quick payout can be a no-brainer for an independent contractor who needs quick cash. However, with the driver shortage, the industry is always looking for ways to get the drivers paid faster, being able to offer same day pay or per-job pay is a huge plus to these solopreneurs.
There are so many things you can take into consideration when looking at how to improve gig workers’ earnings. If you look at these five items alone, you’ll be on a better path to making the drivers on your gig platform more earnings and get the retention you have your sights set on.
Let DDI work with you and with our independent contractor partners where everyone benefits. Together, we can improve the gig economy community with more independent contractors connected to the right businesses. Get started by contacting our Sales Team for Independent Contractor Management Solutions or at our Driver Sign Up to become a driver-partner today.