The gamification of the gig economy

Driver’s map on Uber and Lyft compares the demand in different areas around the city. (Photo: Damon Casarez/Bloomberg)

The gig economy brands themselves as independent, self-directed entrepreneurs, choosing when and how they work. But the buzzy “Be Your Own Boss” is only code for a freelance workforce managed by yet another algorithm.

Uber Technologies Inc. and Lyft Inc. have been the blueprint for startups looking to take a cut of people’s labor without providing staff stability. The concept of directly connecting customers to contractors paved the way for platforms like Grubhub, DoorDash, and UberEats in the US and FoodPanda, Angkas, and Grab locally.

These apps hold real-time auctions, matching prospective customers with drivers or couriers in a vast marketplace. Its contractual system lets businesses grow—or shrink—with less friction than a company structured around salaries, employees, and managers.

The rules of the game

For Uber drivers, many describe an experience plagued by uncertainty and arbitrariness. They participate in a business model hinged on an asymmetry of power and information. 

Accepting a ride is done without knowing the pickup or drop-off location and an inability to assess how much a trip profits after out-of-pocket expenses that are today's gas prices.

Once drivers log on, the app keeps tabs on their every move, from the percentage of available pickups they accept; the time and areas they typically work; to their ratings from passengers. But on the drivers’ end, visibility is limited to a dashboard with bar charts of weekly earnings, trips completed, and fare breakdowns. 

Take surge pricing—if demand overtakes supply in an area, heat spots appear flashing on the map with climbing fares to draw drivers. The platforms notify drivers about to log off how close they are to unlocking the next performance tier that would enable them to see a trip’s duration and direction. Insistent pings prompt them to accept a fare before they’ve completed the one they’re on.

What should be a straightforward chance for a side hustle is inhibited by a stingy reward program. More points are awarded for driving at certain hours, low cancellation rates (accepting 9 out of 10 rides), and keeping a near perfect customer rating. But after a “qualifying” period (Uber’s is three months), the score resets.

These measures, according to Uber and Lyft, prevent drivers from cherry-picking rides.

Gig economy within the gig economy

The difficult gamesmanship is feeding a niche of driver bloggers and social media influencers—a kind of gig economy-economy. 

One of the first was the Rideshare Guy blog, which driver Harry Campbell started in 2015. It’s since evolved into a media operation with newsletters, podcasts, and videos on maximizing income. 

Other driver micro-influencers or “tsuper-stars” have emerged in the country. On TikTok, #grabdriver has garnered 53.1 million views ranging from dance challenges to mini-vlogs en route from couriers.

Rebalancing power dynamics, an attempt

After the driver exodus triggered by the pandemic, companies are finding difficulty in getting drivers back on the road. The labor shortage has given remaining drivers new leverage.

Ride-hailing companies have spent millions in the past year on incentives and bonuses. 

Before expenses, US driver earnings averaged a little more than $24 an hour in March, a ~56% increase from pre-pandemic rates. But even the new bonuses, drivers say, are gamified to make them harder to claim or even understand.

Lyft downgraded the fee drivers collect when a rider cancels from a flat $5 to a variable amount based on how quickly the cancellation was made. Conversely, Uber tweaked its surge pricing incentives by replacing a multiplier on fares with a set amount.

In the Philippines, Grab is offering zero-interest loans on fuel purchasing and a P25-million Partner Assistance Fund to help drivers overcome natural calamities and ongoing macroeconomic conditions. Meanwhile, Angkas provides cash incentives for drivers if they reach a certain number of rides.

“They call us independent workers, as if we have control over what goes on in the app,” says Anthony Arnold, who drives in Las Vegas. “Sure, you can make a bit of money, but it’s not going to be on your terms.”