Airtasker, which was founded in 2012 by Tim Fung and Jonathan Lui, headquarters in Sydney, Australia. The company offers users an online platform and allowing them to outsource daily tasks. In such marketplace users explain the task and devise a budget, then other members of the community can bid for the task and get a reward after completing it.
Airtasker works on a innovative model which changes the workforce of the nation. It is a transformative business model which changes the work scene.
Business Model of Airtasker
HOW AIRTASKER WORKS
Airtasker, an Australian company based in Sydney, was founded in 2012 and is now growing. It allows users to outsource daily tasks to skilled workers. Based on the rating and review system, users can assign their tasks to the optimal workers, while workers can choose to bid for their preferred task. Airtasker has full authority over all payments between the user who posts the task and the worker who performs it.
Covering an insurance by CGU, up to $10 million of insurance is provided to protect task executors in Airtasker market from liability for personal injury or property loss to third parties while performing tasks.
The operation process on Airtasker begins with posting a task, setting a recommended payment and any other details of the task, while other members of the community can post their preferences and intentions as well as acceptable amount of payment. According to the profile, business record and rating of the applicant, the user can select the optimum person to complete the task, after which the two parties will be allowed to conduct private communication and deal with the payment. Joining Airtasker is free for both task posters and applicants, except taskers will encounter a 22% service charge and GST billing when the task is completed. In addition, according to the membership rating system, silver, gold or platinum tiered taskers will receive a 20%, 18% or 15% reduction respectively, when they make no less than $1,000.
Company Development History
COMPANY DEVELOPMENT TIMELINE
The launching of the company was followed by the funding of $1.5 million (Airtasker, 2020). The high level of funding project showed the high barrier of entry into this industry for high financial funding is needed. In order to better compete in this industry, the company did horizontal integration through the acquisition of rival company. This allowed for greater market share of Airtasker which put it into a better competitive position within the industry. Partnership is also present in the company development for it allows the business to grow with related industry partners. The partnership with CareerOne therefore showcased the company motive to increase company exposure.
MILESTONE OF AIRTASKER
Airtasker have raised up to $50 over million over the past 8 years in business operation. The large financial backing and investment of the company allowed for greater input into company operation and expansion. The form of investment and financial support allowed company to gain competitive advantage through building of company infrastructure and expansion into different countries (Airtasker, 2020). The high level of investment into the company also showcased the prospect of the company with motivation to become a household brand of Australia. Given the investment from major companies including NRMA, Shanghai-based Morning Crest Capital and Seven West, this also means that major companies are taking up shares within the business. The taking up of the shares will come in exchange with funding for company development and support from these multinationals. With the high level of investment into the business, this also shows the recognition of these investors onto the future prospect of the business.
“Airtasker has a highly scalable online platform that simplifies the end-to-end task process and provides a rich and valuable data platform, which is a strong competitive advantage.” Seven West Chief Executive Tim Worner.
The Airtasker Network
Changing the Workforce
Airtasker is a form of gig economy business model which is changing the workforce and has transformative effect. Airtasker works on a unique and innovative model which is linked to the gig economy. A gig economy is an unregulated economy framework wherein transitory positions are normal, and associations recruit autonomous specialists for transient duties (Gunasekara, 2011).
Flexibility is the key to stability (the growup group, 2019)
The gig economy is being base on independent contractor and the matching between the client and the workers are done on the online platform (Prassl & Risak, 2016). This allows for flexibility for both the client and the worker. The client gets to choose who can do their job and also having a wide range of choices easily on the website as there is the bidding process. The workers also have the choice of when to work and for what is the price that they want. This provided numerous benefits for the workers of this new era. In the current modern society, flexible working is being preferred by many. It gives the flexibility of the workers to work during their free time. It also allowed for extra income earned (Stewart & Standford, 2017).
THERE HAS BEEN AN INCREASING NUMBER OF PEOPLE WHO SEEK TO BECOME INDEPENDENT CONTRACTOR AND ENGAGE IN FLEXIBLE WORKFORCE.
Despite the advantage that Airtasker has provided in terms of flexible work where the workers can work as and when they like. Gig economy also have their form of disadvantage in the workforce. this means that there is the disintegration of the connection between the employer and the employee (Holley, 2014). The form of connection is based on flexible work relationship instead of the traditional form of employment relationship. The concern of worker’s rights becomes the issue of discussion for Airtasker. The ‘gig economy‘ utilizes advanced stages to sidestep a considerable lot of the normal duties and expenses of work (Rawling, 2015). The uncertainty arises when the workers are independent contractor and are working with the company on a project basis which is one off. However, the relationship is still long term for the workers depend on the platform to make money despite not having formal employment relationship. This means that the worker’s rights such as wages, working conditions and basic worker rights are not being in place (Sundararajan, 2016). Law and regulation in the workforce are lacking in the gig economy for that the law and regulation are protecting of the traditional workforce of formal relationship. This therefore needs new law and regulation to be in place for protection of these increasing group of workers (Goodwin & Maconachie, 2011). Associations, business, and government all have a task to carry out, long haul. Then, direct commitment between these new firms and laborers’ promoters can likewise assist with alleviating the dangers presented to work guidelines by advanced plans of action, by tending to administrative holes.
In the pursuit of the Union in NSW, Airtasker is being associated with poor working condition and low wages which is a form of exploitation (Minter, 2017). The union urge for changes in the current working relationship of workers and these gig economy platforms. The understanding encourages the presentation of some essential assurances with respect to suggested paces of pay, security, protection and question goal (Ellem & Shields, 2004). Notwithstanding these securities, labourers at Airtasker eventually need the presentation of genuinely enforceable work guidelines. The workers need to come under the protection under the Fair Work Commission and WorkChoice of Australia’s regulation. This means that changes need to be in place for the law and regulation (Hardy, 2012). The current workforce environment is changed due to the rise of gig economy and companies based on temporary and independent contractors.
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