Independent Work, Real Opportunity: The Gig Economy and the Future of Entrepreneurship

Small Business Administration OversightHouse Small Business · 2026-04-21 · 119th Congress
The House Small Business Committee held this hearing to examine the role of app-based "gig" platforms in supporting entrepreneurship and small businesses, and to hear from platform representatives and small business owners about regulation, worker classification, and delivery marketplace practices. Begins at 0:20:21
Transcript
Highlights

Title

Gig economy platforms, small business growth, and worker classification

Purpose

The House Small Business Committee held this hearing to examine the role of app-based "gig" platforms in supporting entrepreneurship and small businesses, and to hear from platform representatives and small business owners about regulation, worker classification, and delivery marketplace practices. Witnesses included the CEO of an industry trade association, a florist, a market research firm owner, and an independent restaurant owner, with members also raising side issues including tariffs, health care costs, and gig-worker safety. Begins at0:20:21

Who spoke

Chairman Roger Williams (R-TX)0:20:21: Opened the hearing, said 36% of the U.S. workforce (70 million Americans) did gig/freelance work in 2025 generating ~$1.5 trillion0:22:11, and credited the Trump administration with reversing Biden-era IRS reporting rules and DOL classification rules0:22:38.

Rep. Nydia Velázquez (D-NY), Ranking Member0:23:01: Argued gas prices rose 21% in March, the largest one-month jump since 1967, hurting gig drivers and restaurants0:24:20; later questioned Ms. Thurnher on delivery-app data access and algorithm fairness2:07:54.

Kristin Sharp, CEO, Flex Association0:31:26: Said app-based industry contributed $212 billion to the economy in 20240:31:54; cited a study finding app-based workers start companies at 3x the general rate with 39% higher first-year profits0:34:32; said ~80% of gig workers work fewer than 20 hours/week0:56:52 and about "a little over 50%" have health insurance0:57:48.

Lisa Alvarez Acevedo, President, Joyce Florist of Dallas0:36:35: Said her family florist grew sales 10% in its first year on DoorDash and made over $60,000 in DoorDash sales in 20250:39:33; contrasted DoorDash's partnership response to a delivery dispute with a traditional wire service's refusal to pay1:45:11.

Elaine Buxton, President/CEO, Confero Inc.0:41:00: Said her research firm uses gig platforms to bring in specialized, project-based talent like fractional CFOs0:55:07; said she lost 80% of revenue in 10 days during COVID and credited SBA PPP/EIDL relief with keeping the company afloat0:45:23.

Rosa Thurnher, Owner, El Ponce (Aztec Travel Inc dba El Ponce)0:46:22: Said delivery platform fees can reach 30%, on margins of 4-6%0:47:14; said her restaurant's app-driven revenue share rose from 5% pre-COVID to 20% now1:10:38; said food costs are 30-35% higher than three years ago due to tariffs1:20:13.

Rep. Morgan McGarvey (D-KY)0:56:01: Cited a constituent, Ann, whose ACA premium would rise from $350 to $1,275.69/month if enhanced tax credits expire0:59:27, and warned of 35 rural Kentucky hospital closures tied to Medicaid cuts0:58:30.

Rep. Mark Alford (R-MO)1:01:17: Asked Buxton about state-by-state independent contractor "ABC test" burdens on smaller platforms1:04:20.

Rep. LaMonica McIver (D-NJ)1:06:34: Asked Thurnher whether drivers juggling multiple apps signals inability to earn a steady wage1:07:54 and about consolidation (e.g., Uber's purchase of Postmates) affecting her restaurant1:10:08.

Rep. Kimberlyn King-Hinds (R-CNMI)1:11:34: Asked Sharp how digital platforms lower entrepreneurship barriers for constituents in the Northern Mariana Islands1:12:30 and asked Buxton about gig platforms serving tourism-dependent economies1:14:58.

Rep. Gil Cisneros (D-CA)1:16:22: Cited a 3.3% CPI spike, small business bankruptcies up 67%, and said half of gig workers join out of necessity earning 50-65% of traditional pay1:17:22; asked Acevedo and Thurnher about tariff impacts on flowers and restaurant ingredients1:19:14.

Rep. Vin Petrone (R-FL)1:22:17: Asked Sharp about seniors' ease using delivery apps and about drone/automated delivery1:23:42.

Rep. Christopher Jackson (D-GA)2:01:52: Asked Thurnher about the industry's origins (Grubhub ~20 years ago, Uber ~15-17 years ago)2:02:53 and asked Sharp about no-tax-on-tips uptake2:04:26.

Rep. Dan Meuser (R-PA)1:32:55: Asked Sharp about federal policies helping gig growth, citing no-tax-on-tips savings (69% saw savings, 47% substantial)1:33:43.

Rep. Derek Tran (D-CA)1:38:04: Cited a New York Times report that Uber receives a sexual assault/misconduct report every 8 minutes, and that Uber reported over 2,700 sexual assault cases from 2021-20221:39:04; noted a February federal jury ordered Uber to pay $8.5 million to an assault victim1:39:53.

Rep. Clay Fuller (R-GA)1:43:34: Asked Acevedo how gig platforms disrupted the traditional florist wire-service model1:44:24.

Rep. Guy Reschenthaler (R-MD)1:48:04: Noted over 5 million small business owners/self-employed rely on ACA coverage, with 4.4 million receiving average tax credits of $1,5001:49:02; asked Thurnher about federal policy for fee transparency, data access, and fee caps1:50:01.

Rep. Tom Weed (R-WI)1:53:14: Cited over 6 million filers claiming no-tax-on-tips and 25 million claiming no-tax-on-overtime savings averaging $3,1001:54:43.

Rep. Kristen Gulton (D-MI)1:57:52: Asked Thurnher for advice to new restaurant owners on navigating delivery apps, including not listing full menus and pricing for container costs1:58:19.

Rep. Maggie Goodlander (D-NH)2:07:10: Cited a fivefold increase in DoorDash/Uber Eats/Grubhub profits over five years alongside loss of over 9,500 independent restaurants2:08:07; pressed Sharp on whether member companies would adjust driver pay for rising gas prices2:11:33.

Key moments

Sharp said DOL classification research from California found independent worker income dropped 10% after stricter rules with no offsetting rise in traditional employment0:52:18.

McGarvey detailed a constituent's ACA premium rising from $350 to $1,275.69 per month if enhanced tax credits expire, and quoted President Trump saying it's "not possible" to fund Medicaid, Medicare and daycare because "we're fighting wars"1:00:24.

Tran cited Uber's own safety report acknowledging 2,700+ sexual assault cases from 2021-2022 and a $8.5 million jury verdict against Uber in February1:39:291:39:53; Sharp responded that drivers require background checks and platforms use in-app safety tools1:41:16.

Thurnher said delivery fees can reach 30% on restaurant margins of only 4-6%, and that her costs are now 30-35% higher than three years ago, forcing menu cuts0:47:141:20:13.

Acevedo contrasted a wire-service refusal to pay for a completed delivery with DoorDash's immediate offer to pay and resend a replacement order after a Dasher canceled one1:45:36.

Goodlander cited a fivefold five-year increase in DoorDash/Uber Eats/Grubhub profits against the loss of 9,500+ independent restaurants nationally, calling the market a "duopoly"2:08:072:09:08; Sharp did not commit to adjusting pricing algorithms for gas prices, citing existing driver relief/discount partnerships instead2:12:23.

Thurnher said her restaurant is listed on Postmates despite never signing up, because Uber acquired the platform, illustrating delivery-market consolidation1:10:08.

McCarvey and Cisneros both cited a 67% rise in small business bankruptcies and a record-low consumer sentiment reading in the survey's 74-year history [1:16:52 / 0:25:55, spoken by Velázquez].

Reschenthaler noted over 5 million small business owners and self-employed Americans rely on ACA coverage, with 4.4 million receiving average credits of $1,5001:49:02.

Thurnher said algorithm rankings penalize restaurants that don't match in-app menu prices to in-store prices, forcing a choice between losing money or losing visibility2:01:26.

Metadata

CommitteeHouse Small Business
Chamber / CongressHouse · 119th Congress
Date2026-04-21
TypeHearing
Witnesses
Ms. Kristin Sharp — CEO, Flex Association
Ms. Lisa Alvarez Acevedo — President, Joyce Florist of Dallas
Ms. Elaine Buxton — President and CEO, Confero Inc.
Ms. Rosa Thurnher — Owner, Aztec Travel Inc dba El Ponce
Videoyoutube
Transcript265 caption blocks · 18,530 words · 2:13:10 runtime
EventCongress.gov 119194