Microsoft’s LinkedIn is reportedly developing a service called Marketplaces that will compete with the likes of Fiverr and Upwork.
The new platform may be available as early as September, according to a report from The Information. Thus, this latest development has raised eyebrows among the public. There has been various speculations on the potential competition between LinkedIn and other freelance sites such as Upwork and Fiverr.
Work on the LinkedIn Marketplace reportedly started in October 2019. Around this time, LinkedIn acquired the assets of a startup called UpCounsel, which connects freelance lawyers and businesses.
Matt Faustman, the former CEO of UpCounsel, currently leads the team responsible for developing Marketplaces. LinkedIn hasn’t officially announced the details of the Marketplaces. However, Faustman has published in his profile that he’s been working on the project since October 2019.
Marketplaces will allow LinkedIn members to take freelance gigs so that they can make a living using the platform. As a result, this new platform is expected to be a force to be reckoned with when launched. Especially with the popularity of the career-focused networking site LinkedIn.
As a result, we have highlighted the key reasons why we believe LinkedIn Marketplaces will compete with top freelance sites Upwork and Fiverr.
Impressive number of users
LinkedIn’s professional network has 740 million members spread across various countries and industries .
Therefore, Marketplace’s integration provides a distinct advantage over its competitors. This is because with regards to expanding their user base from scratch, there are no entry delay disadvantages.
Furthermore, white collared services such as writing, consulting, and marketing would be the main focus of the new platform.
More Flexibility
LinkedIn’s move comes after an increase in the number of companies looking for temporary positions for executive training, design work, and software development. As a result, they are creating means for users to offer their services directly via their profiles. Thus, this means, among other things, that users can post their job proposals to attract freelance talent.
Furthermore, like existing gig platforms, clients also have the resources to evaluate freelancers after work is completed.
Adequate Time To Capitalize
The labor market turmoil caused by the pandemic, coupled with the rules of working remotely imposed by the subsequent lockdown, has led to an unprecedented increase in the temporary employment (gig) economy.
This is reflected in Upwork and Fiverr, who achieved an increase of 37% in 2020 compared to 2019. This is because both freelance sites generated a total of $ 550 million in revenue. As a result, LinkedIn is looking into this growing market by opening its network to freelance work.
Digital Wallet Integration Will Make Things Convenient
LinkedIn could emulate the current gig economy model by taking a fraction of the transactions.
Parent company Microsoft is considering allowing freelancers to make payments through LinkedIn’s digital wallet. Thus, this should make the platform a ready-made solution for both employers and job seekers.
Do you think LinkedIn with its already massive user base has a chance to become a leader in the gig economy? Let us know your thoughts in the comments section below.
