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Fiverr breaks from gig-economy IPO curse, CEO says market ‘is like e-commerce 20 years ago’

By MarketWatch

Fiverr International Ltd. shares soared in Thursday trading after the gig-economy software company made its public debutRead full story

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  • Full disclosure, I hadn't heard of Fiverr before this article. Yes, that has me worried and wondering what else I don't know. Regardless, it does help that I am not in the weeds and gives me another perspective.

    Why is gig anything so popular? Ride sharing, coding, lawn mowing... if it's to get cheap labor, it won't be sustainable in the long term and will exploit those who are working in the short term. It will most certainly hurt the employer.

    Contract workers fall into this category. One of

    Full disclosure, I hadn't heard of Fiverr before this article. Yes, that has me worried and wondering what else I don't know. Regardless, it does help that I am not in the weeds and gives me another perspective.

    Why is gig anything so popular? Ride sharing, coding, lawn mowing... if it's to get cheap labor, it won't be sustainable in the long term and will exploit those who are working in the short term. It will most certainly hurt the employer.

    Contract workers fall into this category. One of the characteristics of this gig economy is that a middleman takes the cut, ostensibly for taking on risks and for connecting the employers with the gig worker. In the IT industry, this has given rise to large outsourcing firms that take on risks that employers should have; layoffs are easier and cheaper. Who, we should ask, represents the workers?

    Whether it's Uber or these IT outsourcing firms, a group of vulnerable folks get exploited. Contractors feel like second class employees in companies that have worked in for years. They're precluded from becoming internal workers through non-compete clauses. Yes, I know, I am drawing a huge arc between gig workers and IT contractors but there are common elements tying the two.

    There are certainly areas of good fit with these gig-enablers. However, when you have workers working 40 hours a week for months on end for one employer, they should become direct employees. If the gig-economy closes off direct employment to those that want it, we have a problem.

    Fiverr may not fall into that category. Maybe. However, if US companies go that route to avoid hiring US residents at market rates, it will hurt everyone. The middlemen need to step up their game to be sustainable - in the same way Uber and Lyft are urgently rethinking their business models. Instead of competing to provide the cheapest gigs, compete to get the fairest ones. Provide a path to equitable employment with benefits.

  • Weiyee IN
    Weiyee INChief Strategy Officer

    The challenge for all of these new age ecosystem and next economy ...gig or otherwise remains a fundamental requirement to demonstrate a clear path to profitability for their economic model. A marketplace does not have high enough barriers-to-entry or a real competitive advantage, but core technologies in software or algorithms would. The easiest way to manage investor expectations is to deliver on or beat estimates

  • Roger Chua
    Roger Chua

    Well done Fiverr! I love your services! Continue the great work!

  • Rajul Alam
    Rajul AlamBusiness Analyst at Capita plc

    People who earn full-time salary that pay their bills are most likely to have a side-hustle. The majority of them are into gig-economy. This is like a Saturday job. However, they will be facing intense competition from Eastern European and Asian countries who are willing to accept work at very low price. It’s difficult to find work that meets their price range. Middlemen like Fiverr always win because they take cut for every transaction made, just like Uber and Airbnb. Money speaks every language.

  • Rob Carroll
    Rob CarrollCofounder & CEO at CampusReel

    They trademarked the word "gig"?!? 😂 Amazing foresight.

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