Uber like gig companies boost economy- Grattan Institute

The Grattan institute in its report stated that the government should encourage gig economy as it brings $1 billion to the Australian revenue.  Victoria and Queensland have to legalize Uber and other such companies.

Today the major part of gig economy revenue is contributed by Uber and Airbnb. The other companies in this line are nascent and yet to make big contributions. In case of Airbnb many unused assets are being put to use and this in terms boost travel and tourism. Uber has helped people earn in part-time and increase the ease of transportation.

But these companies are struggling due to lack of regulations which govern this sector. They will not be able to comply with 20th century industrial norms and neither can they be left free without rules. It is necessary to frame rules as soon as possible to avoid any exploitation of market or workers in their favor.

There are issues like tax, workers norms which has to be addressed at the moment. Tax has been a major concern as traditional industries ( at present taxi and hotels) state that these new model fail to comply with taxation and this creates unfair advantage over them.

In case of workers Uber has clearly maintained that the drivers are contractors and not its employees there are legal battles going on in US in regard with this. Employee or contractors drivers need certain terms of working to be written between them and company to avoid exploitation

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