Workers in the Argentine gig economy have been growing steadily over the past year due to a decline in formal employment. Based on estimates from the App-Based Workers Union (Sitrarepa, for its Spanish acronym), there are close to 1 million people working in the sector.

According to official data from the Superintendency of Occupational Risks, the government agency responsible for regulating workplace safety, approximately 339,000 formal jobs have been lost since President Milei came into office in December 2023. 

People who need a new job aren’t the only ones flocking to delivery and ride-hailing apps. They’re also used by those looking to supplement their income, given the decline in the purchasing power of wages. Private-sector wages are 4.8% below their November 2023 level, while public-sector wages are 17% lower, according to the Argentine Institute for Fiscal Analysis (IARAF). 

A series of recent data points, however, indicate that these apps’ capacity to absorb labor may be reaching its limit. 

Milei is banking on massive investments in energy and mining to generate a “trickle-down” effect for other sectors of the economy. If the gig economy functions as a sort of intermediate stage, saturation raises questions about the viability of the government’s economic plan to generate quality jobs in a timely manner. 

How many Argentines work in the gig economy?

Delivery apps — led by PedidosYa and Rappi — and ride-hailing apps like Uber, Cabify, and DiDi employ the largest number of workers in the platform economy. 

It is difficult, however, to pinpoint an exact number due to the different ways these companies count their users. 

Cabify told the Herald........

© Buenos Aires Herald