As independent contractors, app-based workers like Dashers are their own boss, and many of them — about 6% in our latest survey — have another business as well. In fact, there is a growing body of evidence that work like dashing can help get new businesses off the ground. That’s why one in six self-employed Dashers (17%) say they dash to save money to start another business and 20% say that they plan to dash until their side business or business idea becomes successful.
Dashing can help entrepreneurs in a number of ways. Starting a new business can be risky, and dashing can provide a financial cushion while waiting for a new business to take off. In particular, 61% of self-employed Dashers agreed that dashing gives them the freedom to leave a job they didn’t like, and 60% say that they choose DoorDash over other earnings opportunities because dashing allows them to supplement their income whenever they need to. For example, Dashing can provide a cushion for businesses that don’t operate year-round:
“I own a seasonal pest control business, meaning I am working non-stop April - October. But in the off months, I've still got to pay the business insurance and other monthly expenses. Dashing with DoorDash provides the freedom I need to make a little money when I want to. Not when I'm told to.” — Shanyn, North Carolina
Recent research bears this out, finding that people who leverage platform work are more likely to start additional businesses. Using individual-level tax data linked to 174 platforms across a wide range of sectors (services, transportation, leasing, and selling), professors Margarita Tsoutsoura, Spyridon Lagaras, and Matthews Denes find that:
People who engage in platform work start new businesses at more than double the rate of people who don't.
Businesses started by people who do platform work tend to be larger — they are 5.6% to 12.5% more likely to have any employees, and 7.1% to 15.8% more likely to have at least 5 employees.
These businesses are also more profitable — firms started by people who do platform work have 37% to 45.4% higher profits than firms started by people who don't.
These findings are also consistent with previous research showing that the expansion of rideshare is associated with a 5% increase in new business registrations and a 7% increase in internet searches about entrepreneurship when Uber or Lyft entered a market. Similarly, research on the sharing economy also found evidence that Airbnb spurs new business creation.
No matter how people choose to supplement their earnings, the research is clear: platforms like DoorDash provide a way to help entrepreneurs who are starting a business, weather tough economic times, and have a second source of income during seasonal dips in business.
