Uber and Lyft Drivers' Average Hourly Wage Is Just $3.37

[DamianTV]

https://www.theguardian.com/technolo...-median-report

Uber and Lyft drivers in the US make a median profit of $3.37 per hour before taxes, according to a new report that suggests a majority of ride-share workers make below minimum wage and that many actually lose money.

Researchers did an analysis of vehicle cost data and a survey of more than 1,100 drivers for the ride-hailing companies for the paper published by the Massachusetts Institute of Technology’s Center for Energy and Environmental Policy Research. The report – which factored in insurance, maintenance, repairs, fuel and other costs – found that 30% of drivers are losing money on the job and that 74% earn less than the minimum wage in their states.

The findings have raised fresh concerns about labor standards in the booming sharing economy as companies such as Uber and Lyft continue to face scrutiny over their treatment of drivers, who are classified as independent contractors and have few rights or protections.

“This business model is not currently sustainable,” said Stephen Zoepf, executive director of the Center for Automotive Research at Stanford University and co-author of the paper. “The companies are losing money. The businesses are being subsidized by [venture capital] money … And the drivers are essentially subsidizing it by working for very low wages.”

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Full article on link.

[acptulsa]

No doubt people from cities with high population density will argue, but this is entirely believable as a nationwide number. Of course, that includes time between runs which could be getting spent anywhere doing anything -- anything you can walk away from on a few minutes' notice, that is. But, yeah, that's the cab business. The only way it's a little misleading is, they were probably going to buy a data plan and car insurance anyway.

[loveshiscountry]

"found that 30% of drivers are losing money on the job"

Fishy. No way 30 percent are losing money and still continue to drive.

"Other studies and surveys have found higher hourly earnings for Uber drivers, in part because there are numerous ways to report income and to calculate costs and time and miles spent on the job."

The other study showed $21/hr so expenses are ~17.63/hr?

[acptulsa]

"found that 30% of drivers are losing money on the job"

Fishy. No way 30 percent are losing money and still continue to drive.

"Other studies and surveys have found higher hourly earnings for Uber drivers, in part because there are numerous ways to report income and to calculate costs and time and miles spent on the job."

The other study showed $21/hr so expenses are ~17.63/hr?

If you do it a few hours a week, and write off all your car expenses? Sure. Maybe more.

[dannno]

If you do it a few hours a week, and write off all your car expenses? Sure. Maybe more.

That's illegal unless you are using your car only for ride sharing, in which case you aren't going to be able to make your lease payment if you are driving that little.

Most drivers deduct the standard federal rate of 56 cents a mile, which is convenient because they keep track of the miles you drive.

Pretty sure most drivers are making an average of $10-12 per hour in normal circumstances, but some drivers make $20-$35+/hour during busy hours in certain cities.

Some drivers are probably making less.. but hey, the demand isn't there, they don't need drivers in that area. Drive somewhere else or get another job. There is no requirement to drive once you signup.

Also, insurace for rideshare drivers is not much more, actually about the same as insurance for personal use because the rideshare companies actually cover any incident when the driver is on a trip, or on the way to pickup somebody. So this is great for anybody who needs a personal vehicle and also wants to rideshare.

[timosman]

Don't we have anybody with a first hand experience?

[dannno]

Don't we have anybody with a first hand experience?

The Collins, but I can tell you most anything you need to know about it.

[timosman]

The Collins, but I can tell you most anything you need to know about it.

$/hr would be a good info.

[dannno]

$/hr would be a good info.

It varies from place to place, but my estimates are based on real world examples. Uber and Lyft have data that the rates are very high, some people have and do earn that much, but many biased studies have come out lowballing their figures. It's somewhere in the middle.

[dannno]

If you aren't earning much driving for them, then that means you are sitting around waiting for rides. That doesn't create much expense. You get expenses when you are doing rides, and rides will make you money.

[timosman]

It varies from place to place, but my estimates are based on real world examples. Uber and Lyft have data that the rates are very high, some people have and do earn that much, but many biased studies have come out lowballing their figures. It's somewhere in the middle.

In either case it can't be much higher than a minimum wage.

[dannno]

In either case it can't be much higher than a minimum wage.

It depends, I know it was not uncommon to make 50-60k per year a few years ago, and I know people who were driving 10-15 hours a week and were getting an extra $300-$500 a week on top of their normal pay from their regular job. So they were making $20-$30/hour but they were driving peak hours and also working a normal job. I think it has gone down some, but if you drive peak hours in some places I think you can still average $15-$20+ per hour.

[angelatc]

he findings have raised fresh concerns about labor standards .....

The liberal....it burns.

[DamianTV]

The liberal....it burns.

It should be fixed by Free Market Standards, where people refuse to work for an unliviable wage.

The concept of the article is also to address the value of money having changed dramatically, which is in direct contradiction to Zippy saying Inflation is just fine, and is actually good. If it is "good", how is it that what used to be a livable wage is no longer livable? Im sure even you can understand why people would clamor for a "Market Standard" which is enforced by government. Even if you dont agree with that solution, which I dont either, the reason people go for it is a knee jerk reaction to getting screwed over. Standard Hegalian Dialectic at play, solution is always to call for more and bigger government, which, every Hegalian Dialectic (Problem Reaction Solution) is a TRAP that many people fall into.