Shaping the Platform Economy's Future and Why it Matters to Everyone Hint: It requires balancing flexibility and security.

The platform economy has revolutionised how people work, offering flexibility that traditional roles often can't match. Millions across Europe turn to platform work, with 3% of individuals in 17 EU and EFTA countries taking part— a share that is steadily growing. However, this growth comes with challenges. How can policymakers balance the need for flexibility with meaningful protections? What can be done to ensure platform workers' views shape the regulations that impact them?

Its workforce is diverse – students, part-time employees and self-employed professionals – who value the freedom to work on their own terms. Industry data shows that courier partners make deliveries for an average of 8 hours per week, with 83% delivering fewer than 20 hours weekly – showing how platform work can function as a flexible, supplementary income source. The vast majority (87%) prefer to stay independent contractors, which makes sense given few traditional employment roles would allow the same level of flexibility, yet policymakers often overlook these preferences.

This disconnect raises vital questions for the platform economy. Getting the balance right will define its future and shape the broader economic landscape.

False dichotomy of flexibility and protections

Platform work offers the freedom to choose when and how to work. Depending on the country, freelancers have varying access to social safety nets. In countries like Austria, Estonia, and Greece, there are both existing frameworks and one's tailor-made for platform work that bring added protections to freelancers. Usually, where such options exist, platforms have been ready to embrace them and contribute to social protection. In Europe, policymakers have the opportunity to review their country's approach, as the EU Platform Work Directive is being implemented over the next couple of years.

Despite many good examples of how to combine flexibility and protections, there persists some thinking that making all platform workers employees would solve all issues. This approach forgets that in an employment setup, both the employer and employee have rights and responsibilities. For example, employees need to show up to shifts and they can have limited say on which shifts they need to take. Or if contrasting the average of 8 hours worked to the fact that most part-time contracts would start from 20 hours a week – meaning in employment there would be fewer people doing the same amount of work. Less flexibility, fewer opportunities.

Regulatory clarity and legal certainty are needed and welcome. Currently, compliance uncertainty means that platforms can be disincentivised from offering voluntary benefits and contributions, such as training, given this could be seen as a sign of employment. No matter how much you want to do the right thing, business leaders need to navigate changing labour laws and avoid misclassification lawsuits, which could lead to financial penalties and reputational damage.

The way forward

So, what is the solution? We should start rethinking worker benefits. Rather than mirroring traditional employment structures, businesses can introduce portable benefits tied to hours worked, allowing workers to accrue protections like insurance or pensions without restricting flexibility.

Hybrid models like this are already in play across Europe as mentioned above. In Greece, digital platforms must extend welfare, health, and safety protections to platform workers, like full-time employees. Meanwhile, Estonia has taken a different approach, allowing self-employed platform workers to receive sick pay and healthcare – demonstrating that security and flexibility can go hand-in-hand.

But not all regulations strike this balance. In Spain, for example, the focus has been less on improving working conditions and more on reclassifying platform workers as employees. This approach overlooked a key point – that many couriers and drivers actively prefer self-employment because it gives them control over their schedules and income.

Scalability can be tackled by offering different worker options – those who want more stability can choose fixed-hour contracts, while others can stay fully flexible. Here too, increased legal certainty would be welcome, as often offering different options is currently not possible due to the way labour laws are set up. Pay structures can also be more dynamic, adjusting to demand while guaranteeing a minimum income to prevent earnings from dipping too low.

Meanwhile, regulatory compliance requires proactive flexibility. Businesses that engage early with policymakers and worker representatives can help shape fairer, more sustainable frameworks instead of scrambling to adjust after the fact. No one benefits from the lack of clarity, and rigid frameworks often fail to meet the demands of workers looking for flexibility.

Protecting courier independence

Policymakers often discuss platform work in terms of couriers or drivers earning extra cash. But there's a bigger picture that's easy to miss: the industry supports small business owners, freelancers, and entrepreneurs who drive growth across diverse sectors ranging from transportation to e-commerce.

Across the UK for example, nearly a quarter (23%) of delivery drivers with more than one role work in creative or IT industries. On our own platform, 88% of couriers have jobs, are studying, or have other responsibilities. Many rely on the autonomy of platform work to supplement their income while building their ventures, funding passion projects, or maintaining financial stability elsewhere.

If policies restrict workers' ability to secure consistent income, benefits, and protections typically reserved for traditional employees, that doesn't just impact individuals. It has a ripple effect on the wider economy, affecting local commerce and job creation. Less reinvestment into local economies for one, and ultimately, fewer growth opportunities. To get this balance right, policymakers must listen to the voices of platform workers themselves, ensuring regulations reflect their diverse needs. A rigid, one-size-fits-all approach to employment would end up doing more harm than good, restricting the very flexibility that allows people to innovate and build something of their own.

Offering security without restraining entrepreneurial spirit is a balancing act that needs careful thought. With the number of platform workers continuing to grow, it's important to support them with systems that protect financial stability and wellbeing, so these workers can keep contributing to the economy in a way that benefits everyone. Ultimately, the platform economy isn't a side industry; it's a crucial support system for a diverse and important workforce.