The news: Instead of offering gig work to contractors who pick up and fill grocery orders, Amazon is shifting those gig workers into jobs as Whole Foods employees, according to a letter to employees reported by CNBC. The transition will be complete by year-end.
More on this: Amazon’s pivot aims to provide the retail giant with more stability to help it better meet the growing demand for online orders.
Grocery click-and-collect sales are growing quickly. We expect them to rise 27.0% in the US this year.
The broader market: Amazon’s shift comes at a time when companies that employ gig workers are encountering challenges due to rising gas prices, a tight labor market, and growing momentum for legislation that could increase their costs.
The big takeaway: Gig workers provide businesses with tremendous flexibility to scale up and down to meet demand.