Intuit Forecast: 7.6 Million People in On-Demand Economy by 2020
August 13 2015 - 4:00PM
Business Wire
QuickBooks Survey Reveals New Era of
Entrepreneurship
An estimated 7.6 million Americans will be regularly working as
providers in the on-demand economy by 2020, more than doubling the
current total of 3.2 million, according to a new study and forecast
from Intuit Inc. (Nasdaq:INTU) and Emergent Research.
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The study also found that:
- 79 percent of existing on-demand
providers said their on-demand activity is part-time.
- The on-demand labor market will grow by
18.5 percent a year over the next five years.
“The rapid growth of on-demand marketplaces is reducing the
traditional friction of finding customers, enabling a new class of
entrepreneurs to find a hungry market for their products and
services,” said Alex Chriss, vice president and general manager of
Self-Employed Solutions at Intuit.
“The rise of the on-demand economy is also forcing policy
makers, companies, and concerned citizens to ask important
questions about the future of work and how best to create stability
for this new breed of entrepreneur. At Intuit, we’re committed to
creating solutions that strike a balance between the advantages of
innovative business models, while ensuring that entrepreneurs
receive the supports and stability they deserve.”
Long-term Growth of Contingent Workforce
The rise of the on-demand economy is part of a broader long-term
growth trend in the contingent workforce, which has grown from 17
percent of the U.S. workforce 25 years ago, to 36 percent today,
and is expected to reach 43 percent by 2020.
The growth of the contingent workforce can be tracked to
structural changes in traditional employment over the past
generation. For example:
- Decline in defined benefit pensions: in
1982 60% of full-time workers at U.S. private sector firms were
enrolled in defined-benefit pension plans. Today, it’s a mere
14%.
- Growth in average duration of
unemployment: from 8.5 weeks in 1980, to 12 weeks in 2000, to 82.1
weeks in 2015.
Major On-demand Research Study
Intuit and Emergent Research are preparing a major study to be
rolled out over the coming months. The study will provide a
detailed analysis of the demographics, motivations and challenges
of workers pursuing on-demand jobs. Industry leaders participating
in the study include Uber, Upwork (formerly Elance-oDesk), Wonolo,
MBO Partners, OnForce, Work Market, Visually, HourlyNerd, and
Fiverr, among others.
“The on-demand economy is poised to transform long-held
assumptions about how the labor market works,” said Steve King,
partner at Emergent Research. “It’s vital that we hear directly
from the workers who are on the front lines of this shift so that
we have the objective data and analysis we need to make informed
policy choices.”
Intuit’s QuickBooks Self-Employed
Intuit’s QuickBooks Self-Employed product enables on-demand
workers to manage business and personal finances, handle taxes
throughout the year and meet compliance requirements. Intuit offers
the product directly to on-demand entrepreneurs through
partnerships with many of the leading on-demand economy
marketplaces including Uber, Lyft and TaskRabbit.
Forecast Methodology
The current number of people working in the on-demand economy
(3.2 million) is based on an online survey of 2,276 adult (18 and
older) U.S. residents conducted between July 27 and Aug. 5.
The forecasted growth to 7.6 million by 2020 was developed by
using a combination of analysis of historical data on the on-demand
economy, and the use of a diffusion of innovation (S curve)
model.
The on-demand economy is defined as an online marketplace or
application that connected providers/freelancers with customers.
This includes:
- Transportation and/or logistics for
people or products (e.g. Uber, Lyft, Grub Hub)
- Finding work via online talent
marketplaces (e.g. Upwork, OnForce, Work Market HourlyNerd,
Fiverr)
- Renting out space (e.g. Airbnb, Couch
Surfing, etc.)
- Providing other miscellaneous services
(e.g. Task Rabbit, Gig Walk, Wonolo).
About Emergent Research
Emergent Research is a research and consulting firm focused on
identifying, analyzing and forecasting the key demographic, social,
technology and economic trends and shifts impacting business and
society. Emergent Research partners, Steve King and Carolyn Ockels,
are co-authors of the Intuit 2020 Report and the Intuit Future of
Small Business Report Series.
About Intuit Inc.
Intuit Inc. creates business and financial management solutions
that simplify the business of life for small businesses, consumers
and accounting professionals.
Its flagship products and services include QuickBooks®, Quicken®
and TurboTax®, which make it easier to manage small businesses and
payroll processing, personal finance, and tax preparation and
filing. Mint.com provides a fresh, easy and intelligent way for
people to manage their money, while Demandforce® offers marketing
and communication tools for small businesses. ProSeries® and
Lacerte® are Intuit's leading tax preparation offerings for
professional accountants.
Founded in 1983, Intuit had revenue of $4.5 billion in its
fiscal year 2014. The company has approximately 8,000 employees
with major offices in the United States, Canada, the United
Kingdom, India and other locations. More information can be found
at www.intuit.com.
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Intuit Inc.Steve Sharpe,
650-224-2362stephen_sharpe@intuit.comorAccess CommunicationsJen
Garcia, 415-844-6244jgarcia@accesspr.com
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