Why Investors Love Vertical Labor Marketplaces (and What It Means for Your Job)

Editor’s preface: The future of work is uncertain as we move into a post-Covid world. We’re seeing the rise of new marketplaces for job placement, tailored to the unique needs of disparate industries. In this article, Adam Keesling explores the implications of this shift.

A vertical labor marketplace is an online platform that matches workers and employers. It’s not so different from “horizontal” labor marketplaces like Upwork or Fiverr, except that vertical labor marketplaces are built with unique features for particular industries. The way hospitals hire surgeons is very different from how local restaurant chains hire servers, which is also very different from how high growth startups hire technology executives. 

Traditionally, labor marketplaces solve “the matching problem.” Employers need tasks completed, and employees know how to do those tasks. So, match them. Vertical labor marketplaces will do this, but they will do more than just match employees. Expect these new marketplaces to also help employers track their candidates through the recruitment funnel, immediately issue credit cards to new employees that are only accepted at pre-approved vendors, process payroll in the same software system, and much more.