A Government Accountability Office (GAO) report released in 2025 found that workers for DoorDash, Uber, and Lyft were the most common recipients of Supplemental Nutrition Assistance Program (SNAP) benefits among major employers, surpassing traditional retailers like Walmart and McDonald’s, which held the top spots in a 2020 survey. The data, based on national employment and benefit enrollment records, highlights a growing reliance on gig work as a primary income source for some workers, even as wages and benefits remain inconsistent.
The report also noted that one-third of app-based workers had been laid off from traditional jobs before or during their gig work tenure, using platform earnings to replace or supplement lost income. Supporters of the gig economy argue that these platforms provide flexible income opportunities for those in transition, reducing reliance on government assistance over time. Critics, however, point to the lack of traditional benefits—such as healthcare, paid leave, or retirement contributions—as a systemic issue that shifts financial burdens onto taxpayers.
How gig work intersects with public assistance
The GAO findings reflect broader trends in the labor market, where gig platforms have expanded access to income but often at lower wage levels compared to traditional employment. A 2025 survey of over 1,000 Michigan residents by the Michigan Metro Area Communities Study found that 22% had engaged in gig work, with half of those workers reporting that gig income was essential or important for meeting basic needs like food and medical expenses. This suggests that for many, app-based work is no longer a supplementary side hustle but a necessary fallback when other employment options are unavailable or insufficient.
Industry response and policy debates
The Pragmatic Policy Group, a research organization, released a separate report arguing that gig platforms reduce fiscal stress on government programs by providing flexible income during economic transitions. The report cited data showing that 63% of gig workers hold another job, and 80% work fewer than 20 hours per week, positioning app-based work as a temporary bridge rather than a long-term solution. Proponents of this view contend that gig work complements the social safety net rather than undermines it, particularly for workers in between jobs or those seeking supplemental income.
Opposing perspectives emphasize that the lack of employer-sponsored benefits forces gig workers to rely on public assistance to cover gaps in healthcare, retirement savings, and paid time off. Critics argue that while gig platforms offer flexibility, they externalize costs onto taxpayers by relying on programs like SNAP to subsidize low wages. Some labor advocates have called for policy changes, including minimum wage protections for gig workers, portable benefits tied to the worker rather than the employer, or expanded eligibility for unemployment insurance.
Key statistics and trends
- DoorDash, Uber, and Lyft were the top three employers with the highest number of workers receiving SNAP benefits in 2025, according to the GAO.
- In 2020, Walmart and McDonald’s were the leading employers of SNAP recipients.
- 33% of gig workers had been laid off from traditional jobs before or during their gig work tenure.
- 50% of gig workers in the Michigan survey reported that gig income was essential or important for meeting basic needs.
- 63% of gig workers hold another job, and 80% work fewer than 20 hours per week on gig platforms.
Broader implications for the economy and workforce
The shift in who relies on public assistance reflects deeper changes in the labor market, where traditional full-time employment with benefits is becoming less common for many workers. Gig platforms have democratized access to income opportunities, particularly for those with non-traditional schedules, caregivers, or individuals re-entering the workforce. However, the reliance on public benefits to supplement gig wages raises questions about sustainability, equity, and the future of work in an economy where flexibility often comes at the cost of stability.
Policymakers, labor economists, and industry stakeholders continue to debate the best path forward—whether through regulatory reforms, expanded benefits, or voluntary industry initiatives—to address the financial vulnerabilities faced by gig workers without stifling the flexibility that makes these platforms attractive.