The Gig Economy and Two-Sided Markets

• Author(s): Alfrin Moni Opiyo ; Dr. Yasin Kuso Ghabon
• Paper ID: 1709652
• Page: 929-934
• Published Date: 24-07-2025
• Published In: Iconic Research And Engineering Journals
• Publisher: IRE Journals
• e-ISSN: 2456-8880
• Volume/Issue: Volume 9 Issue 1 July-2025

Abstract

Globally, the gig economy has rapidly transformed labor markets with Kenya emerging as a key player in Africa as a result of its high mobile penetration and digital financial services. This paper conducts a microeconomic analysis of the gig economy as a two-sided market, examining platform dynamics, pricing strategies, and welfare implications in Kenya. Using theoretical models and empirical data, the study explores how digital platforms like Uber, Bolt, and airbnb booking apps mediate labor supply and demand, the efficiency of matching mechanisms and the regulatory challenges. The findings suggest that while the gig economy enhances labor flexibility and income opportunities, it also raises concerns about worker exploitation, income volatility, and market power concentration. Policy recommendations are proposed to foster fair competition and worker protections while sustaining innovation.

Keywords

Gig Economy, Two-Sided Markets, Platform Economics, Labor Markets, Kenya, Labor Regulations

Citations

IRE Journals:
Alfrin Moni Opiyo , Dr. Yasin Kuso Ghabon "The Gig Economy and Two-Sided Markets" Iconic Research And Engineering Journals Volume 9 Issue 1 2025 Page 929-934

IEEE:
Alfrin Moni Opiyo , Dr. Yasin Kuso Ghabon "The Gig Economy and Two-Sided Markets" Iconic Research And Engineering Journals, 9(1)