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Requests for Startups © 2015 All rights reserved ● RFS 1099 Economy Report ● Table of contents ● www.requestsforstartups.com
The 2015
1099 Economy
Workforce Report
Requests For Startups
Requests for Startups © 2015 All rights reserved ● RFS 1099 Economy Report ● www.requestsforstartups.com
Published on May 20, 2015

Pay and lack of enjoyment leading reasons for attrition
However, pay was the leading reason for a respondent to leave a 1099 job. Also notable is that lack of
enjoyment was the 2nd
most attributed reason.
Q. Why did you choose to leave the companies you no longer work for? (N = 771)
Key Findings: Cash is King for Sustainability

Many are also working without insurance
N = 404
N = 397
A surprising 8% of ridesharing worker respondents and 16% of delivery worker respondents that drive for
their jobs reported not having car insurance. More than a quarter of these workers, including those who
do not drive, also reported not having health insurance.
Key Findings: Delivery Drivers Have Fewer Options
Q. For the following insurance products, choose what best describes / your current situation? (N = 435)

Grow earnings and tax/legal are key pain points
Key Findings: Needs and Opportunities
One way to gauge the needs of freelancers is to look at the respondents’ most common pain points.
Q. What are the biggest pain points you face in your work as an / independent contractor? (N = 910)

Hourly Wage
How much do you typically earn per hour as an independent contractor?
Earnings and Spending
18
25
15
19
25
N = 1089

Car-Related Expenses
How much do you estimate you spend on car-related expenses in the typical month for your independent
contractor work?
Ridesharing drivers spending on average $965 per month on car-related expenses, while delivery drivers
spend $374.
Earnings and Spending
N = 1011

Longevity in Industry
7
How much longer do you see yourself working as an independent contractor?
Work Life and Sustainability
N = 954

Perks and Benefits
Rank benefits in terms of desirability, with most desired being on TOP (1), least desired being on BOTTOM
(9).
Needs and Desires
N = 940
3.15 | Health insurance
3.78 | Retirement benefits
3.79 | Paid sick, holiday, and vacation days
3.91 | Opportunities for advancement
5.40 | Sponsorship for further education
5.80 | Disability insurance
5.91 | HR support services
6.36 | Social interaction with coworkers
6.90 | Company-sponsored events
Mean rank (1- 9) Benefit|

The Operators
Interviews
What does the future of work look like?
“Labor is following the path of cloud-computing. This is in the sense that a couple decades ago, when
you started a business you had to buy your own servers and set them up, whereas now you just
outsource it to Amazon at a very low cost. We predict a similar trend in labor, where it will become
decentralized and liquid. Intuit reports that by 2020, 40% of the American workforce will be
independent workers. As it becomes easier and cheaper to find talent, companies will rely less on
full-time employees and will hire on a task/project basis.”
– Keith Ryu, CEO of OnboardIQ
“The future of work is way more dynamic and flexible than what we are used to today. People will
educate and train themselves mostly online and be able to change careers multiple times during
their lives. High skill jobs like doctors, engineers, designers will become more and more
decentralized in the same way service jobs are changing with on-demand marketplaces. APIs will
continue to replace middle management and you will have more and more software companies with
engineers automating most of the clerical/administrative jobs.”
– Daniel Yanisse, CEO of Checkr
“The days of punching a clock are over. The future of work will allow people to work when they want,
how much they want, and for them to be recognized through automated reputations systems for the
quality of the work they perform. This will enable entirely new lifestyles for people who are interested
in pursuing things that require a less rigid schedule. This change in the relationship between worker
and company will allow workers to pursue passions otherwise unattainable due to schedule or
location restrictions.”
– Cameron Doody, Co-Founder of Bellhops

“With how fast this type of workforce has grown in our economy over the past few years, there's an
information gap in how the independent workforce is structured, thinking and changing due to the
lack of publicly available longitudinal data. Regulatory change will be extremely impactful in this
space only if it has the right data to understand true cost of living and incentives needed. Until then,
many on-demand business models that utilize independent workers may be running businesses that
won't work from a unit economics perspective post-regulation.”
– Joanne Yuan, Cowboy Ventures
The Investors
Interviews
What does the future of the on-demand workforce look like?
“The on-demand workforce has grown rapidly in the last five years and this growth is not expected to
slow down. In fact, some studies predict that 40% of the US workforce will be part of the on-demand
workforce by 2020. Since practically one out of two US workers will be part of the on-demand
economy, we expect it to be far more regulated and streamlined.
First the government will become more involved and eventually set clear guidelines for classifying
the workers and determining their benefits. Second, the employers themselves will need to
reconsider HR practices for these workers. They cannot use the same playbook they use for their
employees. Some of the questions they need to address include: how do recruit, how to retain, how
much to train them, what type of compensation and benefits, how much integration into the
company culture, etc. Finally, the worker today should also see a growth in terms of the services that
allow him to become part of the on-demand economy. We expect there to be hiring platforms,
insurance services, loan services, and others.”
– Mar Hershenson, Pejman Mar Ventures

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