In today’s economy, the concept of a side hustle has become more than just a trend – it has become a necessity for many individuals across all income levels. The ability to generate additional streams of income outside of a traditional 9-5 job has become a lifeline for those living paycheck to paycheck. According to a report by PYMNTS earlier this year, 22% of all U.S. consumers engage in some form of side hustle to supplement their cash flow. This includes individuals from all walks of life, including those earning six-figure incomes.
One of the most popular avenues for side hustles is through gig platforms such as Uber, Lyft, Instacart, and Fiverr. These platforms offer individuals the flexibility to work on their own terms and earn extra income in their spare time. Despite some volatility in certain sectors, the second-quarter earnings from these platforms have shown significant growth and momentum.
Uber and Lyft, two of the leading ride-hailing companies, have seen a surge in the number of drivers on their platforms. Uber reported 7.4 million drivers and couriers in Q2, up from 7.1 million in the previous quarter. CEO Dara Khosrowshahi noted that the weaker job market has led to an increase in driver supply, with average earnings per utilized hour in the U.S. reaching $33, a 23% increase from the previous year. Lyft CEO David Risher also highlighted the company’s 1 million active drivers and emphasized the importance of gig work in allowing people to live life on their own terms.
Instacart, a popular grocery delivery platform, has also seen a significant increase in the number of shoppers leveraging its platform for income. CFO Emily Reuter mentioned that the company is continuously improving shopper efficiencies and payments to ensure a seamless delivery experience for customers. Similarly, Fiverr, a freelancing platform, reported an increase in spending per buyer despite a slight drop in active buyers. The company highlighted the vast potential of the freelancing market in the U.S., estimated at $247 billion.
Overall, the rise of side hustles and gig work has provided individuals with the opportunity to supplement their income and take control of their financial well-being. With the flexibility and earning potential offered by platforms like Uber, Lyft, Instacart, and Fiverr, more and more people are turning to side hustles as a viable means of financial stability. As the gig economy continues to grow, it is clear that side hustles are here to stay as a crucial component of the modern workforce.
