Gig platforms now top employers of SNAP and Medicaid recipients, GAO finds

According to a 2025 Government Accountability Office analysis, ride-share and food-delivery firms Uber, Lyft and DoorDash now employ more workers who receive SNAP benefits than traditional large employers like Walmart and McDonald’s, a reversal from a 2020 survey. The shift reflects gig work’s evolution from occasional side income to a vital earnings stream for a sizable share of the workforce, many of whom struggle to cover essential expenses.

A parallel GAO finding places these platforms as the third-largest U.S. employer of Medicaid participants, a status they did not hold in 2020. The report highlights that while gig workers value flexibility, they face persistent issues with pay transparency, benefits, and eligibility verification, especially under new Medicaid work-hour rules introduced in a 2025 tax and immigration bill. Scholars suggest portable benefit models, like New York’s Black Car Fund, as a possible remedy, contrasting with California’s Proposition 22 approach that offers limited, non-portable benefits. The analysis underscores the growing fiscal burden on taxpayers as gig companies rely on public programs to fill benefit gaps.