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Visible hands: How gig companies shape workers' exposure to market risk

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  • Michael David Maffie

Abstract

How do gig platforms prevent workers from defecting to a competitor? Drawing on 40 original interviews and survey data from 210 ride‐hail drivers, the author finds that platform companies calibrate workers' exposure to market risk using gamified reward systems. These rewards protect compliant workers from changes in market conditions, raising the costs of accepting work from a competitor. Yet those who do not comply are “pushed” to the periphery, increasing their market risk. This article illustrates how platform companies can use their “visible hands” to harness and control market forces, shaping worker behavior within and across platforms.

Suggested Citation

  • Michael David Maffie, 2024. "Visible hands: How gig companies shape workers' exposure to market risk," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 63(1), pages 59-79, January.
    • Handle: RePEc:bla:indres:v:63:y:2024:i:1:p:59-79
    DOI: 10.1111/irel.12337
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    References listed on IDEAS

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    1. Sundararajan, Arun, 2016. "The Sharing Economy: The End of Employment and the Rise of Crowd-Based Capitalism," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262034573, December.
    2. Jonathan V. Hall & Alan B. Krueger, 2018. "An Analysis of the Labor Market for Uber’s Driver-Partners in the United States," ILR Review, Cornell University, ILR School, vol. 71(3), pages 705-732, May.
    3. Michael David Maffie, 2020. "The Role of Digital Communities in Organizing Gig Workers," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 59(1), pages 123-149, January.
    4. Michael David Maffie, 2022. "The Perils of Laundering Control through Customers: A Study of Control and Resistance in the Ride-hail Industry," ILR Review, Cornell University, ILR School, vol. 75(2), pages 348-372, March.
    5. Evans David S., 2003. "Some Empirical Aspects of Multi-sided Platform Industries," Review of Network Economics, De Gruyter, vol. 2(3), pages 1-19, September.
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    1. Michael David Maffie, 2024. "Politicized shopping in the gig economy: Retaliation and solidarity on the “other side” of the app," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 63(3), pages 343-367, July.
    2. Binyi Yang, 2024. "Balancing flexibility and stability: The role of outsourced service stations in managing food‐delivery platform work in China," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 63(4), pages 530-551, October.

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