Report: A fifth of ride-hailing and courier service providers are at a dead end of their careers

Olavi Miller, an expert at the Foresight Centre, said that platform work is primarily a way to earn extra income rather than a deliberate career choice in Estonia. Nevertheless, there are several thousand people in Estonia who do this job full-time or even longer hours. “As a long-term career path, platform work tends to be a bit unattractive right now, but its impact on a person’s future career depends heavily on the type of work,” said Miller. “For instance, the study revealed a clear gap between the type of work and the educational level of ride-hailing and courier service providers. Two-thirds of those working full-time or longer hours in this job felt overqualified for it. They were also dissatisfied with opportunities for professional development and learning.”

The work of online platform workers aligns better with their education and few of them fall into the “dead-end career” category. Online platform workers are also more satisfied with opportunities for professional development and are more willing to undertake further training in their field.

A study conducted by TalTech, the University of Tartu, and Tallinn University showed that for people doing their professional work online, platforms are predominantly important for expanding their client base and experimenting, as well as being a launchpad into a new field. Platform work is also often used as an in-between phase between jobs, during the transition from traditional employment to entrepreneurship, and to make extra money. For couriers and app-based taxi drivers, platform work is done more for earning an income than for self-development.

Nearly half of the platform workers surveyed gave a maximum score to the importance of money in their work. Over 70% of respondents among app-based taxi drivers and food couriers considered money to be of primary importance.

In Estonia, people often do platform work alongside studies, traditional employment, retirement, parental benefits, or entrepreneurship. Seven percent of online platform workers work full-time, whereas thirty percent of ride-hailing and courier service providers work at least full-time, which is an estimated 2245 people in Estonia.

Mari-Klara Stein, an associate professor at TalTech and author of the analysis on the impact of platform work on career paths, noted that platform workers feel their experience is not valued outside the platforms and this could have a negative impact on their future careers. “Platform workers also repeatedly highlighted inconsistently guaranteed health insurance as a concern, and the restoration of insurance coverage is often what motivates them to return to traditional employment,” said Stein.

The Foresight Centre points out in its short report that platform workers’ career development is hindered by their low participation in further training, partly because information about suitable training opportunities does not reach them. Among people doing location-based or online work via platforms, 31% and 36% of respondents, respectively, are not aware of suitable training opportunities. Also, between a quarter and a third of workers are aware of various training opportunities but have no plans to use them. Among those interested in training, a following pattern emerges: online workers are considering further training in their current field, whereas location-based workers are more interested in learning a new field.

The short report “Does Platform Work Support Careers?” (in Estonian) is based on the analysis “The Impact of Platforms on Career Paths” prepared by Mari-Klara Stein (TalTech), which is part of the study “Impacts and Future Directions of Platform Work in Estonia.” The study, commissioned by the Foresight Centre and the Ministry of Economic Affairs and Communications, is being conducted by TalTech, the University of Tartu, and Tallinn University. The study runs until October 2026.