The Gig and Sharing Economy: Transformations, Challenges, and Organisational Responses

Abstract

The rise of the gig and sharing economy in the 2010s represents one of the most significant shifts in labour markets and business models since the advent of industrial capitalism. Enabled by digital platforms such as Uber, Airbnb, TaskRabbit, and Upwork, this new economy reshapes the relationship between firms, workers, and consumers. It challenges traditional understandings of employment, regulation, and value creation. This article explores the drivers of the gig and sharing economy, including technological innovation, consumer preferences, and globalisation. It then examines key challenges: worker precarity, regulatory ambiguity, market concentration, and ethical dilemmas. Strategic responses are identified for firms, policymakers, and workers, including platform governance, social protection mechanisms, and collaborative models. Sectoral case studies in transport, hospitality, freelancing, and retail provide practical insights into successes and failures. Broader implications for labour rights, taxation, and the future of work are also analysed. The central argument is that the gig and sharing economy cannot be dismissed as a passing trend; it is an enduring transformation that requires innovative governance and inclusive strategies to ensure fairness, sustainability, and legitimacy.