The traditional economy operates through established businesses and physical interactions, whereas the platform economy leverages digital technology to connect parties and facilitate transactions.
The traditional economy operates through established businesses and physical interactions, whereas the platform economy leverages digital technology to connect parties and facilitate transactions. In the traditional economy, businesses typically own the assets and employ workers directly. In contrast, the platform economy relies on an asset-light model where the platform acts as an intermediary, and the workers are usually independent contractors or freelancers. This shift from physical to digital and from direct employment to independent contracting is reshaping economic activities and work relationships.