Gig platforms like Fiverr, Uber, and Etsy have made side hustles accessible for millions of Americans, but the economics often favor the companies running the apps over the workers.
According to the 2024 DollarSprout Side Hustle Report, close to 70% of Americans make extra cash on the side, yet the majority of gig workers (36%) earn just $100 to $500 per month. The most common side hustle activities are taking paid surveys (72.6%), reselling items (39.4%), and online freelance work (29.8%).
These platforms profit through transaction fees, paid visibility, and user data. Fiverr charges freelancers a flat 20% fee per transaction, while Upwork charges 5% to 15% depending on client billing history. Uber keeps roughly 25% or more of each fare while drivers cover gas, maintenance, and depreciation.
Etsy sellers face layered costs beyond the 6.5% transaction fee. They pay $0.20 per listing, payment processing charges, offsite ad fees, and optional advertising spend. This stack of micro-fees can significantly erode profit margins.
Austin Rulfs, a mortgage broker, found that driving twelve-hour days for Uber during a long weekend yielded barely above cafe wages once fuel, servicing, and platform fees were calculated. Etsy selling presented similar problems with micro-fees cutting into profits.
Jennifer Street, who runs Forged Flare through Etsy, has earned nearly $60,000 in sales since December 2020. She warns sellers against relying solely on Etsy, advising them to build personal online stores alongside platform presence.
To succeed on gig platforms, understand the fees charged, spread risk across multiple channels, and treat each platform as a stepping-stone rather than a destination.