- Financialnewsmedia.com News Commentary
PALM BEACH, Florida, May 7, 2020 /PRNewswire/ -- The GIG Economy model has proven to be a sustainable, alternative employment structure even in times before it was called GIG… it existed in traditional part-time shift-work industries like, food delivery, bartenders, retail and hotels, but over the past few years, it has really taken hold to one industry notably drowning in employee turnover and churn problem… restaurants. Much of the restaurant industry has been using the GIG economy forever already.... Bartenders, servers, and others who are paid just for those shifts which they work, rather than a consistent salary (and benefits) are GIG workers. There are a number of companies in the restaurant GIG-work space that help managers in need fill empty or understaffed shifts immediately. These companies have seen continued growth over the past few years and are projected to continue. They help owners incorporating GIG workers to a restaurant staff roster and prevent the need to over-schedule staff without worrying there won't be enough hands on deck. Active companies in the markets this week include ShiftPixy, Inc. (NASDAQ: PIXY), Grubhub Inc. (NYSE: GRUB), Slack Technologies, Inc. (NYSE: WORK), Uber Technologies, Inc. (NYSE: UBER), Lyft, Inc. (NASDAQ: LYFT).
The GIG economy workforce allows restaurants to staff according to their needs at the time, in both the number of employees and the quality of them. As a hole opens in the schedule it can be filled very quickly, as well as keeping a flush roster of potential workers in times of uncertain availability. Engaging with GIG workers also gives restaurants a way to evaluate potential new staff members before bringing them on as full-time employees, and the contractors can likewise assess if the establishment would be a good full-time fit. Managers are also able to replace an absent staff member immediately to reduce the stress of a missing server on the rest of their staff. Incorporating GIG workers into a restaurant's operations can be a wonderful choice for restaurants struggling with turnover or finding the right people for the right shifts.
Additionally most full-time employees in the US are at-will employees and can be laid off with little notice and no severance pay for any reason or none at all. By contrast, GIG workers are typically fired only for workplace violations. In regard to it being harder to lose a GIG job, "many workers will discover that now," said and industry insider.
ShiftPixy, Inc. (NASDAQ: PIXY) BREAKING NEWS: ShiftPixy Announces First International Expansion - Disruptive US-based gig engagement platform is launching in Canada; plans continued global expansion - ShiftPixy, today announced its first international expansion, ShiftPixy Canada, to meet the recent increased interest from multi-unit restaurant operators in Canada. The company is currently in the process of completing all the necessary registration in each of Canada's ten provinces and plans to begin offering its end-to-end restaurant solution to Canadian customers as soon as that process is complete in the coming months. The company has established ShiftPixy Canada as a wholly-owned subsidiary.
With its $90 billion foodservice is industry, Canada represents ShiftPixy's first international expansion, a continuation of the company's aggressive growth strategy that has evolved from California only followed by nationwide service across the US. The company will continue its expansion to international markets that meet its criteria and are ripe for disruption in the restaurant industry.
As restaurants face an uncertain future globally, operators are seeking simple, digital solutions that can help them not only weather the storm but also better reinforce their business infrastructure. Furthermore, third-party delivery partners are eating into restaurants' already thin margins. ShiftPixy's human capital management, online ordering and native delivery services offer Canadian restaurants an all-in-one platform.
"Despite the uncertain time, we are very excited to be expanding to Canada and helping restaurants and operators there do what they do best – deliver a great food experience – while helping them grow their businesses," said Scott Absher, CEO and co-founder of ShiftPixy. "ShiftPixy's multi-lingual approach makes new market entry very quick, and we're eager to continue our global expansion plans."
In addition to Canada, ShiftPixy is working with relevant partners and regulators in nations throughout Latin America and Japan in order to meet the demand in those markets. Read this and more news for ShiftPixy at: https://www.financialnewsmedia.com/news-pixy/
Other recent developments in the markets this week include:
Grubhub Inc. (NYSE: GRUB), a leading online and mobile food-ordering and delivery marketplace, announced financial results for the first quarter ended March 31, 2020 and also posted a letter to shareholders on its investor relations website. The Company reported revenues of $363 million, which is a 12% year-over-year increase from $324 million in the same period last year. Gross Food Sales grew 8% year-over-year to $1.6 billion, up from $1.5 billion in the same period last year.
"The restaurant industry is facing enormous challenges in light of the difficult, but necessary, steps taken to keep us safe as we fight COVID-19," said Matt Maloney, Grubhub founder and CEO. "Grubhub is using nearly all of our profits in the second quarter to generate as many additional orders for our restaurant partners as possible. We hope that the darkest days are behind our restaurant partners and they can start focusing on the recovery."
Slack Technologies, Inc. (NYSE: WORK) Between February 1 and March 25, 2020, Slack added 9,000 new paid customers—an 80% increase over the full quarterly total for the preceding two quarters. And not only are more people using Slack; they're using Slack more. As our co-founder and CEO, Stewart Butterfield, outlined in a recent series of tweets, during that same period, the number of messages sent per user per day increased by an average of 20% globally.
In the U.S., we've seen these global trends continue. The San Francisco Bay Area, Seattle and New York were among the first places in the nation to adopt shelter-in-place measures. As our customers in these regions shifted to remote work, the increased depth of engagement and usage shows how Slack has become a central part of their remote workday.
Uber Technologies, Inc. (NYSE: UBER) – Recently reported on YahooFINANCE, U.S. cities that have idled mass transit during coronavirus lockdowns are turning to an unusual partner to get essential workers to hospitals, warehouses and factories: ride-hailing company Uber. Long criticized by officials in large U.S. cities for siphoning off transit riders and clogging up streets, some less-dense cities with reduced transit ridership are now turning to the Silicon Valley-based company to fill transportation gaps.
A handful of transit agencies are paying Uber Technologies Inc and subsidizing rider costs during the pandemic to offer transportation at off-peak hours or in less busy areas. Some give monthly bus-pass holders a limited number of Uber rides, others cover the entire cost for regular Uber rides to and from essential workplaces.
Lyft, Inc. (NASDAQ: LYFT) on Wednesday of this week surprised investors with higher-than-expected revenue and the ride-hailing company vowed further cost cuts to become profitable as the U.S. coronavirus lockdown batters the economy. The first-quarter results offer a first look at the impact of strict stay-at-home orders to combat the spread of the virus in many of the ride-hailing industry's largest markets.
Lyft's earnings also serve as an indicator for the performance of larger rival Uber Technologies Inc , which will report results on Thursday. The company did not say whether it stuck to its goal of being profitable on an adjusted basis by the end of 2021 but on Wednesday said cost cuts would help it on the "path to profitability." Lyft on Wednesday said first-quarter revenue rose by 23% to $955.7 million from the previous year, well ahead of a $884.7 million estimate by Refinitiv.
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