PRACTICE TEST 3 Why does the speaker mention ride-sharing apps and freelance websites?

[00:00.00]Listen to a talk in an economics class.
[00:01.00]Professor: Today, we are going to talk about the concept of the gig economy. The gig economy is a labor market characterized by short-term contracts or freelance work, as opposed to permanent jobs. It has gained significant traction in recent years because of technological advancements and the rise of digital platforms like ride-sharing apps and freelance websites.
[00:02.00]In a gig economy, workers typically take on multiple short-term jobs or projects, and they often do so through online platforms that connect them directly with clients. This can offer greater flexibility compared to traditional employment as workers can choose when and where they wanna work. Companies benefit from the gig economy by reducing overhead costs associated with full-time employees, like for office space. This allows them to vary their workforce according to demand, which can be particularly useful during peak seasons or for specific projects.
[00:03.00]On the other hand, gig workers may face difficulties in securing consistent work and may have to juggle multiple gigs to make a living. Next, we will discuss potential regulatory responses to protect gig workers and after that: the implications of the gig economy on traditional labor markets.