FindingsNotedAlex Eben MeyerView full imageWe would expect gig economy mainstays, such as Uber and Lyft, to challenge related industries. But SOM’s Jiwoong Shin and colleagues have shown that such companies have the potential to disrupt unrelated fields as well. Shin and his teammates hypothesized that because Uber and Lyft offer attractive employment options for low-skilled service workers, their presence in a labor market increases service staff turnover in restaurants, resulting in decreased service quality. Using labor-force data and restaurant reviews from Austin, Texas—where the local rules led to Uber and Lyft halting operations for a year—the team found that when Uber and Lyft first entered Austin, negative restaurant reviews climbed. When the companies left, negative reviews declined; upon their reentry, negative restaurant reviews again increased. The study suggests the gig economy can disrupt the labor market, with consequences for industries far beyond the restaurant market.
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