DISPATCHES FROM THE NEW ECONOMY:

THE ON-DEMAND WORKFORCESECOND ANNUAL REPORT, FEBRUARY 21, 2017

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From delivery, transportation and household errands, to professional services and consulting, the on-demand economy is not only changing the way people consume goods and services, it’s also changing the way millions of Americans work. With incredible flexibility and stunning ease-of-entry, this new economy is empowering a new generation of entrepreneurs. In an updated forecast by Intuit and Emergent Research, the number of people working on-demand jobs will grow from 3.9 million Americans to 7.7 million in 2020, and an impressive 9.2 million by 2021.

In 2015, Intuit kicked-off a research project in partnership with Emergent Research and eleven on-demand economy and online talent marketplace companies to gain a deep and objective understanding of the motivations, aspirations and pain points of individuals choosing on-demand jobs. In the latest study, new findings reveal that the on-demand economy has taken on a key role in improving the financial stability of people looking for flexible opportunities to supplement income.

INTRODUCTION

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METHODOLOGY

For this study we surveyed 6,247 people who find work via an on-demand platform that connects service providers with customers.

People working via the following platforms are included in this report:

• Amazon Mechanical Turk, Avvo, Catalant, Field Nation, Kelly Services, Lyft, MBO Partners, OnForce, TaskRabbit, Upwork, Wonolo, Work Market

Results weighted to reflect the proportion of providers in each of the following segments:

• Drivers/Delivery• Online Talent Marketplaces• Field Service/Onsite Talent

The overall 2016 results are statistically consistent with the 2015 results. 2

EXECUTIVE SUMMARYPeople engaged in on-demand work are looking for flexible opportunities to smooth out unpredictable income, while also testing ways to build a secure financial future:• On-Demand Work is Used to Supplement Existing Income: The average person

working an on-demand job spends 11 hours per week, and earns 24 percent of their household income via on-demand work. Forty-one percent also have a traditional full-or part-time job.

• On-Demand Work Fills Near-Term Financial Needs: Sixty-six percent of people working on-demand report having variable monthly income. Forty-one percent say that a financial hardship – such as a job loss, medical problem, or unexpected major expense – impacted them during the prior year. By contrast, just 18 percent of all Americans in a recent U.S. Federal Reserve survey reported encountering a financial emergency.

• On-Demand Work Is Used To Build A Sustainable Future: Many people are leaning on on-demand economy work to either develop a new business or supplement and expand an existing business Thirty-seven percent already own a business, and 21 percent want to build a business.

• There is General Satisfaction With On-Demand Work: 38 percent of people working in the on-demand economy say they are better off, while only 14 percent feel they are worse off. Eighty-one percent plan to continue working an on-demand job over the next 12 months, and 67 percent of people are satisfied with their on-demand work.

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REASONS FOR WORKING IN THE ON-DEMAND ECONOMY

Want to try something new57%

Want to earn more money/supplemental income

46%

Want to create and control my own schedule

35%

Want greaterwork/life flexibility

32%

Want to be my

own boss

32%

Want to make up for a financial hardship

21%

Want another source of income while looking for work

19%

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On-demand economy providers report working an average of 37.3 hours per week with about 11 hours per week working for their primary on-demand economy partner

of on-demand economy providers have either a

traditional full-time job (27%) or part-time job (14%) in

addition to their on-demand economy work

41%33% Work with another on-demand service provider that connects me with customers

26% Employed in a traditional full-time job (receive a W-2)

26% Run my own business and have no employees

19% Care for my family

14% Employed in one or more traditional part-time jobs (receive a W-2)

13% Sell goods in online marketplaces

11% Run my own business and have at least one employee or partner besides myself

9% Full- or part-time student

5% Work through a temporary or talent agency

5% Retired

5% No other sources of income

Additional Activities Workers Currently Engage In

ON-DEMAND ECONOMY PROVIDER INCOME

5

24%

ON-DEMAND ECONOMY PROVIDER INCOME

The average gross income from an on-demand economy provider over the past 12 months is $12,100.

Average percentage of household income generated by on-demand work

$ $ $ $

Reported hourly earnings ranged from $5 to $61 with an average of

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20%

36%

26%29%

Top Hardships On-demand work has improved the financial position for many on-demand economy providers

Much better off

Somewhat better off

About the same

Somewhat worse off

Much worse off

9%

29%

48%

10%

4%

1 in 5 turned to on-demand work due to a financial hardship.• 41% reported experiencing a financial hardship over the past year • 51% said the financial hardship was the primary reason (19%) they are working

independently or one of the reasons (32%)

31%

Unexpected Major Expense

JobLoss

HealthEmergency

Work Hours Cut

Almost one third of online on-demand economy providers who also have full-time jobs say they see their on-demand work as a backup in case something happens to their regular job

Many people are turning to flexible on-demand work to weather financial challenges, such as:

ON-DEMAND ECONOMY IMPROVES FINANCIAL STABILITY

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Highly variable income

Income varies quite a bit month to month and is unpredictable

Income varies quite a bit month to month but is predictable

Income roughly the same but some months unusually high or low

Income more or less stable

24%

14%

28%

34%

Limited financial reserves

44%

34%

Said the largest emergency expense they could pay without borrowing was less than $400

Have No Retirement Savings

Lack of health coverage

24%

26%

Do not have health insurance

Did not get medical treatment during the past year because they couldn’t afford it

Many people are turning to flexible on-demand work to weather financial challenges, such as:

ON-DEMAND ECONOMY IMPROVES FINANCIAL STABILITY

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BUILDING A BUSINESS IN THE ON-DEMAND ECONOMY

37% own a business

21% want to build a business

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I always wanted to be my own boss

I do not like having to answer to a boss

I will not go back to relying solely on a traditional job

Previous employers have not recognized the value I offered

I would rather hava a traditional job than be my own boss

Strongly / Somewhat agree Neutral Strongly / Somewhat disagree

20%71% 9%

30%53% 17%

25%50% 25%

24%47% 29%

24%15% 61%

Many have a desire to run their own business or be their own boss, and are leaning on on-demand economy work to either develop a new business or supplement or expand an existing business.

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SATISFACTION AND RELATED ATTITUDES

50%

Highly Satisfied

17%

Satisfied

23%

Dissatisfied

like controlling when, where and how they work.91%

On-demand economy providers report being happier and enjoying the flexibility of their on-demand jobs.

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ON-DEMAND ECONOMY PROVIDER CHALLENGES

62%

53%

41%

Getting enough work

Unpredictable income

Unfair pay

The growing number of workers providing the same service

Lack of job security

Lack of benefits/health insurance

Top Challenges

31%

27%

21%

36%

Probably

3%

Probably Not

45%

Definitely

15%

Might/Might Not

81%would like to

continue working in the on-demand economy

47%would like to

increase their work

34%would like to keep

their work the same

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FUTURE PLANS

Will on-demand economy providers continue working with their primary on-demand economy partner 12 months from now?

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ON-DEMAND ECONOMY PROVIDER DEMOGRAPHICS

Men

White African American Hispanic Asian/Pacific Islander / Indian sub-continent

Other

Women59%

64% 11% 9%7%

41%

Gender

Marital Status

Age

Education

Ethnicity

42 40Average (years)

Children/grandchildren in household

Median (years)

34%

Married

Not married and not living w/partner

Not married, but living w/partner

Divorced

Separated

Widowed

Millennials: Aged 18-34

Gen X: Aged 35-51

Baby Boomers: Aged 52-68

Seniors: Aged 69+

High school or less

High school degree / GED

Some college or 2-year degree

4-year college degree

Graduate or professional degree

Other

47%

24%

12%

9%

2%

1%

35%

41%

24%

1%

1%

7%

30%

31%

28%

2%10%

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CONCLUSION

The on-demand economy is accelerating the move toward self-employment and is having a transformative effect not only on our economy, but also on the way millions of Americans live.

At Intuit, we're committed to empowering people to take advantage of the positive opportunities the on-demand economy provides. We're also committed to building new tools and supports to deliver stability for the growing self-employed workforce.

It’s time to look ahead with an informed and productive discussion about the future of work.