Markets and Economy

Opportunities for Revenue Growth in the Gig Economy

A recent report from the JPMorgan Chase Institute identifies room for supply-side growth in the driving and leasing online platform economy, as well as key influences on average monthly revenue generation.


A recent report from the JPMorgan Chase Institute identifies room for supply-side growth in the driving and leasing online platform economy, as well as key influences on average monthly revenue generation.

Participation in the gig economy is an increasingly common income generator for families. Transportation-related platforms specifically have seen 20 times more participation over the past five years, yet a recent report from the JPMorgan Chase Institute—The Online Platform Economy in 27 Metro Areas: The Experience of Drivers and Lessors—finds revenues during that time have declined by half due to driver and lessor trends, as well as geographical factors.

“With the pace of technology accelerating and transforming labor markets, it’s increasingly important that we understand these nuanced dynamics at work,” said Diana Farrell, President and CEO of the Institute. “With this information, policymakers, platform companies and participants alike can better plan for an economy of the future where online platform work continues to play a positive role.”

The report’s key findings include:

  • Average monthly revenues generated from the online platform economy are a reflection of how often drivers or lessors participate. Additionally, the size of the potential market and availability of customers have a greater influence on revenues than competition from other potential drivers or lessors. In both the transportation and leasing sectors, average monthly revenues per participant are higher in metro areas with more participants, though a number of metro areas stray from this pattern.
  • Driver and lessor participation grew in every city studied between 2013 and 2018, but some areas grew more than others.
  • Local characteristics—such as the prominence of incumbent industries, labor market conditions and policy decisions—may explain some of the cross-metro variation in platform participation and revenue.
Markets and Economy JPMorgan Chase Institute Report

Get in Touch and Stay Informed

icon
Loading...