DISPATCHES FROM THE NEW ECONOMY:

THE ON-DEMAND WORKFORCEQUICKBOOKS SELF-EMPLOYED

From delivery, transportation and household errands, to professional services and consulting, the on-demand economy is changing the way people consume goods and services.

It is also changing the way people work. Intuit and Emergent Research forecast that the number of people working on-demand jobs will grow from 3.2 million Americans to 7.6 million by 2020.

At Intuit, we believe that this is a once in a generation opportunity to empower the future of work and a new face of entrepreneurship.

We also believe that doing so will require a new mindset and most importantly, a deep and objective understanding of the aspirations, motivations and pain points of those choosing on-demand jobs.

Who are they? Why did they choose this work? How satisfied are they? What are their pain points? What do they want?

To answer these questions, we embarked on a research project in partnership with Emergent Research and eleven on-demand economy and online talent marketplace companies.

INTRODUCTION

Emergent Research

1

8 KEY FINDINGS

1. The majority of on-demand economy providers are part-timers.

2. The primary reasons they work in the on-demand economy is to earn more money and to have greaterwork flexibility, control and autonomy.

3. Most on-demand economy providers are satisfied with their work.

4. Most on-demand economy providers plan to continue working with their on-demand economy partner.

5. Many on-demand economy providers are small business owners and/or builders.

6. The biggest challenges on-demand economy providers face are getting enough work and a lack of predictable income.

7. On-demand economy providers earn, on average, 22% of their household’s income through on-demand economy work.

8. The on-demand economy workforce skews young, but 18% are 55 or older. On-demand economy providers are also more diverse than the overall U.S. workforce.

Methodology:Survey of 4,622 providers who find work opportunities via the following platforms:

• Uber, Upwork, Wonolo, MBO Partners, OnForce, Work Market, Visually, HourlyNerd, Fiverr, Deliv and Field Nation

Results weighted to reflect the proportion of providers in each of the following segments:

• Drivers/Delivery• Online Talent Marketplaces• Field Service/Onsite Talent

The weights were developed based on the results from a separate, national survey of on-demand economy providers.

Definitions:On-demand economy providers - Individuals who work via an on-demand economy partner.

On-demand economy partners - Companies who provide a platform for on-demand work.

2

THE MAJORITY OF ON-DEMAND ECONOMY PROVIDERS ARE PART-TIMERSOn-demand economy providers report working an average of 40.4 hours per week with about 12 hours per week working for their primary on-demand economy partner

of on-demand economy providers have either a traditional full-time job (29%) or part-time job (14%)

43%

Works for more than one platform

Has their own business

Cares for family members

Full or part-time students

Primary on-demand economy partner company is their sole source of income

33%

39%

19%

11%

5%

3

ON-DEMAND WORK IS ONE OF MANY INCOME STREAMSThe average on-demand worker relies on three different income streams.

Top Sources of Income

On-Demand work

Traditional full-time job

Independent contractor / consultant / freelancer

Run own business / no employees

Traditional part-time job

Run own business / at least one employee or partner

Sell goods in online marketplaces

Temporary or talent agency

34%

24%

19%

9%

6%

5%

2%

1%

4

REASONS PROVIDERS WORKIN THE ON-DEMAND ECONOMY

To create and control my schedule

63%

46%

To be my own boss

32% For greater work / life flexibility

35%

Other Top Reasons

Other ReasonsWanted to try something new

For income while I look for other work

To gain skills to advance my career

Inability to find a job

32%

19%

17%

11%

The primary reason is to earn more money / supplemental income.

5

SATISFACTION AND RELATED ATTITUDESOn-Demand Economy Providers’ Level of Satisfaction With Their On-Demand Job

SatisfiedHighly Satisfied

54% 16% 7%

Dissatisfied

like controlling decisions about where, when and how they work91%

6

SATISFACTION AND RELATED ATTITUDESOn-demand economy providers report being happier and enjoying the social opportunities the on-demand economy provides. They also report more of their friends are starting their own businesses and/or working in the on-demand economy.

!

I am happier because I’m with an on-demand economy partner

I enjoy the social opportunities that working withan on-demand economy partner offers

More of my friends are working independently or starting their own businesses than in the past

Strongly / Somewhat agree Neutral Strongly / Somewhat disagree

28%63% 9%

14%58% 28%

30%36% 34%

7

Definitely

47%

Probably

34%

Might / might not

15%

Probably not

3%

Will on-demand economy providers continue working with their primary on-demand economy partner 12 months from now?

FUTURE PLANS

plan to continue working with their primary on-demand economy partner81%

8

32%

24%

MANY ON-DEMAND ECONOMY PROVIDERS OWN OR PLAN TO BUILD A SMALL BUSINESS

Want to build a business

Want to be their own boss

Own their own small business

39%

Being the Boss

I always wanted to be my own boss

I do not like having to answer to a boss

I will not go back to relying solely on a traditional job

Previous employers have not recognized the value I offered

I would rather have a traditional job than be my own boss

Strongly / Somewhat agree Neutral Strongly / Somewhat disagree

18%74% 7%

16%54% 30%

25%50% 25%

27%48% 25%

64%13% 23%

9

ON-DEMAND PROVIDER CHALLENGES

Top challenges:

!

Getting enough work

Unpredictable income

Unfair Pay

Lack of job security

Understanding tax and legal obligations

Lack of benefits / health insurance

57%

50%

41%

22%

20%

19%

!

10

$ $ $ $

22%

ON-DEMAND PROVIDER INCOME

Average gross income from an on-demand economy job over past 12 months is $7,900.

Average percentage of household income generated by on-demand work

!

Reported hourly earnings ranged from $12 to $98 with an average of

11

ON-DEMAND ECONOMY PROVIDER DEMOGRAPHICS

Men

White African American Hispanic Asian/Pacific Islander / Indian sub-continent

Other

Women66%

64% 12% 10% 11%7%

34%

Gender

Marital Status

Age

Education

Ethnicity

41 38Average (years) Median (years)

Married

Not married and not living w/partner

Not married, but living w/partner

Divorced

Separated

Widowed

Millennials: Aged 18-34

Gen X: Aged 35-51

Baby Boomers: Aged 52-68

Seniors: Aged 69+

High school or less

High school degree / GED

Some college or 2-year degree

4-year college degree

Graduate or professional degree

Other

46%

24%

12%

9%

2%

1%

39%

36%

24%

1%

1%

9%

36%

31%

20%

2%

12

The on-demand economy is accelerating a move toward self-employment and is having a transformative effect on our economy.

We need to empower people to take advantage of the positive opportunities that the on-demand economy provides. We need to build new tools and supports to deliver stability for the growing self-employed workforce.

It’s time to look ahead with an informed and productive discussion about the future of work.

CONCLUSION