The gig economy isn’t slowing down anytime soon, and exposure to gig economy stocks can help round out a diversified portfolio. End-of-year estimates peg 2023’s total gig economy volume around $455 billion, doubling from just five years ago. The factors contributing to the rise are obvious. Remote work trends, side hustles and the variety of available side hustle opportunities combine to make the gig economy increasingly competitive with traditional full-time employment paradigms.

However, not all gig economy stocks are created equal. Many gig work providers, platforms and facilitators have a narrow moat subject to competition. That’s why differentiation is key when weighing which gig economy stocks are best to invest in.

Upwork (UPWK)

I’m very familiar with Upwork (NASDAQ:UPWK) as a user and work extensively through the platform. From a freelancer’s perspective, Upwork has many frustrating qualities, and management seems to make equally questionable decisions. But from a gig economy stock perspective, the company’s freelancer/client marketplace position is untouchable. Upwork has nearly 60% of the market share within the broad freelancing marketplace and tends to attract a higher-paying professional clientele than companies like Fiverr International (NYSE:FVRR).

Post-pandemic, as we entered a tighter economy and saw the ZIRP-era fall, Upwork managed to increase profitability to remain viable. The company posted its second-ever profitable quarter in its most recent report, sending shares surging (though still well below all-time highs). Better yet, the company’s gross service volume stayed fairly steady since early 2021, indicating the company’s value proposition remains viable even amid economic clampdowns.

Upwork’s primary hurdle is in its enterprise client domain. The company’s enterprise segment growth slowed somewhat in recent months, which could indicate large company budgets don’t support freelance work as readily or, more likely, those companies are sourcing talent independently. If Upwork can realign its enterprise program to attract larger clients with greater sticking power, the economy gig stock’s trajectory could skyrocket.

Uber Technologies (UBER)

Uber Technologies (NYSE:UBER), like Upwork, dominates its gig economy sector. While there is a healthy subset of full-time, dedicated Uber drivers, most (51%) use Uber as a gig economy tool and work fewer than 15 hours weekly to supplement their regular income. The company is set to join the S&P 500, further indicating the gig economy stock’s strength. The vast majority of analysts rate Uber stock as a Strong Buy, with 32 of 48 polled giving it that rating and only two calling it a Hold — none say it’s worth selling right now. Likewise, analysts project Uber’s annual earnings to grow 68% over the next three to five years.

One analyst summed up the bull thesis well: “Uber is the largest company in the ridesharing industry the second-largest player in food delivery. We expect both businesses to perform solidly for the remainder of 2023 and in 2024, as ridership has now rebounded to pre-pandemic levels.”

Like Upwork, Uber’s profitability wavered post-pandemic, but recent realignment points to an improved outlook. Though the stock trades at a fairly high earnings multiple, it’s undervalued if analyst consensus bears fruit.

Airbnb (ABNB)

The era of the professional Airbnb (NASDAQ:ABNB) host might be waning, but that doesn’t mean the gig economy stock is set to crash. Instead, the company’s user base seems to be returning to its roots of leveraging extra space to serve as an alternative to pricier hotels. Compared to other gig economy stocks, Airbnb is facing some significant bearish headwinds. Specifically, a $10 million fine for misleading international customers regarding pricing — they listed rentals in USD rather than local currency — could open the floodgates for further scrutiny. But, like the other gig economy stocks, Airbnb’s position within its niche is untouchable.

The company boasts 20% of the total vacation rental industry market, which is significant considering it’s competing with legacy hotel franchising. At the same time, its post-pandemic listing and booking rate accelerated well past the same stats in 2019, showing Airbnb deftly navigated the difficult period to come out on top.

Airbnb’s revenue jumped nearly 20% year-over-year in its most recent report, with gross booking value hitting 17% growth. Though this accounts for the summer travel season, we’re likely to see the uptick continue through the current holiday season.

On the date of publication, Jeremy Flint held no positions (directly or indirectly) in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.