Digital Platforms And The Gig Economy: The Case Of Uber In Ghana

ABSTRACT An increasing number of people are turning their attention towards the gig economy, away from the traditional methods of engaging and being engaged for jobs. The Gig economy refers to an environment of technology-facilitated short-term consultative tasks that are performed on a project-by-project basis , popularly known as “Gigs”. Gigs are done in different sectors (e.g. computer and information technology, media and communications as well as transportation and dispatch sectors of the economy). This study explores a Gig platform called Uber, which is a ride-hailing platform and focuses on riders and drivers who use the application as a medium of accessing transportation and offering transportation services respectively. This study explores the nature of the gig economy as well as the motivations and outcomes of participating in the gig economy from a developing economy context. The study is explorative in nature and adopts a qualitative research approach. It uses a theoretical model based on the Unified Theory of Acceptance and Use of Technology (UTAUT) which is an integrative concept that has been widely used to measure IT adoption. Data was collected using semi structured interviews. The study made use of a number of sampling techniques in the following order; convenience sampling, random sampling and purposive sampling in arriving at the final respondents used for the study. In all, 16 respondents were used for the study, comprising 8 drivers and 8 riders. For divers, respondents were purposively sampled based on characteristics such as the length of time of using the platform and number of trips they have made. xiii For riders, respondents were purposively sampled with sample characterises based on length of time of using the platform as the basis for selection. Findings from the study suggests that riders who sign on to the platform had some considerable level of education. Additionally, their motivation for subscribing to the gig economy is due more to the convenience and cost savings that the platform provides. Again, using the application was both complementary and substitutive since some riders still used the traditional means of transport whiles for other riders, the platform has virtually come to replace how they would hitherto go through the trouble of requesting for taxi services and as such found the use of the platform to be a substitute in how they request for services. Payment for services was also done by cash and an electronic form of payment called “mobile money” as compared to the credit card or debit payment option made available on the platform. Service providers (drivers) on their part also had considerable level education with the least being a senior high school qualification. Additionally, their motivation for joining the gig economy is due more to the flexibility that the platform presents to them as well as an opportunity to earn additional income and also to earn a living. On the aspect of outcomes, using the application provides them with the opportunity to network and to earn supplementary income. Also, just like riders, some drivers found working on the platform to be a complementary job whiles others found it to be substitutive. The mode of payment for the services they rendered was often done by cash or “mobile money” as compared to the credit card or debit payment option made available on the platform. xiv On the aspect of how the service providers (drivers) receive remuneration from their use of the platform, they indicated that the platform tracks every transaction on the services they provide and the amount they make is shared between the platform and the driver with 65 percent of the earnings per trip going to the driver and 25 percent going to the platform initiators. This study fills the gap of the scarcity of research work done on the gig economy from a developing economy context and its originality lies in the researcher’s adoption of the UTAUT framework to explore this study qualitatively even though the UTAUT framework is generally used in quantitative studies to access technology adoption.