The gig economy has always been surrounded by controversy. Some say it’s an innovative way to allow people to work from home, others see it as the downfall of traditional working models and labor laws. But new data from publicly traded companies in the gig economy proves that the gig economy isn’t going anywhere—in fact, it’s just getting started. In this article, we’ll explore why the gig economy isn’t going anywhere anytime soon and how companies in this space are succeeding at scale despite their critics.

The stocks of gig economy companies like Uber, Lyft, DoorDash

The stocks of gig economy companies like Uber, Lyft, DoorDash
Image Source: CMC Markets

Gig economy companies Uber, Lyft, DoorDash, and Airbnb saw their shares rise this week after they announced strong quarterly earnings. Lyft saw a spike of 46% during the week, and Uber jumped 37%, the best week for both stocks in the company’s history. DoorDash saw a climb of 15%, and Airbnb climbed 5.5% for the third week in a row.

Investors are encouraged to see that gig companies are surviving inflationary pressures that have hit other sectors, like retail. Also, it indicates that grocery delivery platform Instacart may be in a position to make a stronger pitch for an IPO. Instacart filed confidentially for an IPO in May, but it had to lower its private market valuation.

As Uber’s CEO, Dara Khosrowshahi noticed that consumers were spending less on goods and more on services. So inflation may have even been beneficial. Khosrowshahi said that Uber saw an increase in the number of drivers on the platform as people look for other ways to earn income.

The CEO of Uber Khosrowshahi Said That Employee Engagement Reached

The CEO of Uber Khosrowshahi Said That Employee Engagement Reached
Image Source: CNBC

Airbnb’s bookings, meanwhile, reached an all-time high. DoorDash saw a record number of orders. Though Lyft still posts net losses, it reached its highest-ever adjusted earnings figure to date. Here are a few highlights:

Uber reports they make 8.07 billion dollars a year, higher than analysts predicted at 7.39 billion. Uber CEO Khosrowshahi remarked that employee engagement reached a post-pandemic high during the past quarter. Lyft reported a 16 percent rise in active riders to 19.9 million, the highest since the outbreak began. DoorDash did a better-than-expected revenue. Though the company had a larger than the anticipated loss per share, it showed 23% growth in the total number of orders.

Shares of Airbnb have risen for the third week in a row. Results for the second quarter were better than expected for the company and revenues were in line with expectations. Airbnb said the number of gross nights booked for cross-border travel exceeded those booked before the pandemic and increased by double compared with the same period last year.