On-Demand Service Delivery Platforms and Value Destruction: Subjective Perceptions of Gig Workers

Abstract

The rapid growth of the sharing economy and its implications on gig workers can be detrimental if platforms and literature continues to focus on the symptoms existing only at the surface level. Therefore, it is necessary to take a closer look at the experiences of effective service providers and understand whether platforms' current success masks the negative impacts. This paper aims to reveal the forms of value destruction in the subjective perceptions of gig workers. Qualitative data from 12 in-depth interviews with gig workers in the Dutch market showed that value creations happen at the expense of three cost types (physical, psychological, and financial). Combined with prior literature, interview findings contributed to the growing discussion around the hyper- capitalist and unfair nature of the platform business model by adopting a bottom-to-top approach. Findings provide theoretical and managerial implications, as well as potential discussions for further research.