> I really do not understand why governments aren't working hard to make this kind of gig-economy illegal.

Because there's a large number of people who take the writings of Ayan Rand and the policies of Ronald Regan as the best way to run government.

Workers' rights are being eroded because we've slowly dismantled and privatized as much of the government as possible.

Workers' rights are incompatible with small government and or libertarian ideals. Much like other rights such as civil rights. Or rights to clean water, air, and food.

Big government isn't perfect, but for its flaws there are benefits having a large organization with a bigger stick to beat in line robber barons whose entire goal is to undermine rights as much as possible to leach maximum profit from society.