Moves Raises $5 Million to Empower Gig Workers to Own the Gig Economy
Moves, an all-in-one banking app exclusively for gig workers, announced today that it has closed a $5 million USD ($6.39M Canadian Dollars) seed funding round to advance its mission of making the gig economy work for its workers.
“The gig economy is surging, yet its workers continue to be left behind,” said Matthew Spoke, CEO of Moves. “Recent studies have shown that 80% of gig workers report an unexpected expense of $1,000 would be difficult to pay. Our commitment to helping our members starts with reducing day-to-day financial challenges and then grows to give them a seat at the table as shareholders. As we move forward in our journey, we are grateful to those investors who are joining us in our support for gig workers.”
The funding round is being led by OMERS Ventures, a notable venture fund with a track record of backing global success stories, and a group of former gig economy and consumer technology senior executives from companies such as Airbnb, eBay, Facebook, Lyft, Uber, and Shopify. Other investors for this round include Panache Ventures and N49P Ventures.
“Moves is uniquely positioned to solve many of the challenges gig workers are encountering,” said Laura Lenz of OMERS Ventures. “The Moves Collective, for example, is a brilliant solution to a persistent issue for gig workers, who traditionally don’t share in any of the value they have helped create. It’s also a win for the gig economy at large – in a fluid marketplace for drivers and couriers, gig workers that own stock are economically aligned to the long-term success of the companies they earn from. Leveraging their insights and understanding of the challenges that many gig workers encounter, Moves has developed an amazing product that helps manage gig workers’ top three unmet needs – general savings, retirement savings or investment, and managing unpredictable income. This is just the beginning of the company’s journey. We see great things ahead for the company – and the gig workers they support – and are delighted we can play a role in their growth.”
Ensuring Gig Workers Benefit From Growth of Gig Economy
The gig economy, which has erupted over the last several years, continues to grow exponentially, and now includes more than one-third of all U.S. workers. In the U.S., the current gig workforce of 59 million is expected to grow to 86 million by 2027. Still, inside state legislatures the debate rages on as to how gig workers should be classified – as independent contractors or as employees – and what benefits they are entitled to. Gig workers continue to face immense day-to-day financial challenges, with high gas prices and pricing algorithm changes. The increasing pressure on public gig companies like Uber and Doordash to meet profitability and stock performance goals introduces trade-offs often shouldered by gig workers, such as lower earnings, scarce health benefits or less data transparency.
“It feels like we’re out here on our own; that we’re an expendable resource.” – Jonathan, a Georgia-based rideshare driver
The promise of the gig economy – to provide flexibility and control over how you earn income – is a vision worth pursuing, despite the challenges. Ashley, a retired veteran from Florida, noted: “No other traditional job would accommodate the multiple medical appointments I go to each week.” Gig work gives her control over how and when she chooses to earn income and to prioritize what matters most to her.