The Flex Association commissioned PPG to examine whether app-based delivery and rideshare work opportunities act as a complement to traditional government safety net programs — in particular, unemployment insurance — and to quantify the resulting savings for U.S. taxpayers.
To estimate those savings, we combined an original national survey of around 1,200 app-based workers with proprietary data from five of the largest U.S. app-based platforms, government datasets, and a complete review of the academic literature.
Key findings
App-based work acts as a financial buffer
- 1 in 3 people on these platforms had been laid off from a traditional job and now replace some or all of that lost income through app-based earnings
- Among households hit by a layoff, 1 in 2 credit app-based work directly for reducing or eliminating their reliance on government benefits
App-based work doesn’t just help workers — it saves taxpayers money
- Taxpayers benefit from $10.5–15.1 billion in fiscal savings over ten years due to reduced reliance of app-based workers on unemployment insurance
- This amounts to $0.92–1.3 billion per year in taxpayer savings, or $3,500–4,100 per unemployment insurance recipient
App-based work offers dignity, not just dollars
- 1 in 3 app-based workers turn to this flexible work because caregiving or family obligations mean they can’t work a traditional job schedule
- 72% feel more financially secure because of app-based work
- 61% say they prefer to earn their own income even if government benefits are available
- 86% of those who have debt say app-based work has improved their ability to repay that debt
Media coverage of our report
“No, gig work isn’t driving poverty — it’s saving taxpayers billions”
Press Release
“App-Based Work Reinforces Social Safety Net by Cushioning Income Shocks and Reducing Reliance on Government Assistance”
