Keir Starmer was first elected to parliament in 2015 – and it’s fair to say a lot has happened in politics since. Back then, not many people had five Conservative prime ministers, three general Elections, and a politically relevant lettuce on their list of predictions for the next ten years. But looking more widely, many trends within our economy have emerged faster and stronger than expected too.
We can all name the biggest companies within the platform economy, and it’s most helpful to consider three main phases. The pioneers – the Ubers and Airbnbs of this world, who led the way in disrupting their chosen industries.
Those who followed, fuelled by changes in society driven by the pandemic matched with low interest rates and high valuations. But now we are seeing a third phase, with startups bringing these new principles to more and more sectors of the economy.
We have all heard of ride-sharing services and 20-minute grocery deliveries – but childcare? There’s a platform for that. A solicitor? Another app for that. Not sure what to have for dinner? Try a platform connecting food shops with stock shortly going out of date with hungry consumers wanting a deal. The platform economy is increasingly just becoming the economy.
Today we are launching Platform Economy UK to represent these companies’ voices in policy discussions as well as in the economy more widely. We’ll be fighting for gig and sharing economy startups redefining earning, lending and consumer behaviour across the country.
This is because whilst these companies are transforming the economy, politics hasn’t kept up. Whilst we know that platform economy startups exist across sectors, across business models, and across the country, all too often the entire sector is treated like it is no more than a few giants. Even discounting this counterproductive view of the sector, progress on regulation and legislation has stalled for companies of all sizes.
Despite the huge shifts in employment practices, it has taken until last week to see any concrete progress towards a bill dealing with employment. Tax rules based on 20th-century business models are crippling 21st-century startups.
And whilst the election of a new government provides the opportunity for progress after a particularly light legislative agenda under Rishi Sunak, this also means uncertainty, compounded by the more difficult funding environment startups face.
This is why we’re launching Platform Economy UK – and why we’re asking every platform startup to get involved. Now is the time to do so – with workers’ and earners’ rights firmly on the agenda, and a prime minister and chancellor focused on growth and not afraid to engage with business.
Whilst policy is important though, inertia in the policymaking process hasn’t stopped platform startups from innovating – and many of the best ideas for what good looks like have come from the sector itself.
That’s why Platform Economy UK will also be launching the Good Platform Programme – a collaborative set of criteria with an award for companies that match it, on what best practice looks like on everything from AI and employment to consumer rights and ESG.
A new MP who won their first election in 2024, following Starmer’s career trajectory, would become prime minister in 2033. Whilst the government’s immediate focus will be the 2024 economy – and we have some ideas for quick wins – we want to consider how the way we earn, lend and interact will have transformed by the time that new MP may step into Number 10.
For that, we need insights and expertise from everyone involved in the Platform Economy – so get involved.
Juliet Eccleston is the founder and strategic advisor of Shared Advisory.
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