Report: Fifth of platform taxi drivers and food couriers in a career dead end

One in five people providing ride-hailing or courier services through digital platforms is stuck in a career dead end, working full time in a field for which they consider themselves overqualified, a new report finds.
Platform work in Estonia is primarily a way to earn additional income rather than a deliberate career choice, Foresight Center expert Olavi Miller said. However, several thousand people in Estonia work through platforms full time or more.
"As a long-term career path, platform work is currently rather unattractive, but its impact on a person's subsequent career depends heavily on the nature of the work," Miller said.
The study found a significant mismatch between education levels and the nature of the work among ride-hailing drivers and couriers. Two-thirds of those working full time or more said they were overqualified for their jobs and also reported dissatisfaction with opportunities for learning and professional development.
The situation is different for people doing professional work through online platforms. Their work is more likely to match their education and relatively few fall into the career dead-end category. They also report greater satisfaction with development opportunities and are more willing to pursue further training in their field.
Research conducted by TalTech, the University of Tartu and Tallinn University found that people doing professional work online tend to use platforms as a springboard into a new field, to expand their client base or to experiment with new types of work.
Platform work is also commonly used as a bridge between jobs, during the transition from salaried employment to entrepreneurship or as a way to earn additional income. Among couriers and ride-hailing drivers, however, platform work is more closely associated with earning money than with career development.
Nearly half of all platform workers surveyed gave money the highest possible rating when asked about its importance in their work. Among ride-hailing drivers and food couriers, more than 70 percent said money was their top priority.
Platform work in Estonia is frequently combined with studies, salaried employment, retirement, parental benefits or entrepreneurship.
Only 7 percent of people doing online platform work do so full time. Among ride-hailing drivers and couriers, by comparison, 30 percent of respondents work at least full time through platforms. The researchers estimate this amounts to 2,245 people nationwide.
Mari-Klara Stein, an associate professor at TalTech and author of the analysis on platform work and career paths, said platform workers believe experience gained through such work is not valued by employers outside the platforms, potentially harming their future career prospects.
"Platform workers also repeatedly cited inconsistent health insurance coverage as a concern and restoring insurance coverage is often a reason for returning to salaried employment," Stein said.
The Foresight Center said low participation in continuing education is another factor limiting platform workers' career development. One reason is that information about suitable training opportunities does not always reach them.
Among location-based platform workers, 31 percent said they were unaware of suitable training opportunities, compared with 36 percent of online platform workers. A further quarter to one-third were aware of training opportunities but did not plan to use them.
Those who are interested in training also differ depending on the type of platform work they do. Online workers tend to consider further training in their existing field, while people doing location-based work are more interested in training for a new field.
The Foresight Center's brief report, "Does Platform Work Support Career Development?" forms part of a broader study, "The Impacts and Future Trends of Platform Work in Estonia," being conducted by TalTech, the University of Tartu and Tallinn University.
The Foresight Center is a think tank at the Riigikogu that analyzes long-term developments and emerging trends in Estonian society and the economy.
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Editor: Marcus Turovski
Source: Foresight Center











