Uber and Lyft Drivers’ Median Hourly Wage Is Just $3.37 (Update: Author Admits Flaws)

RSS Feed

Uber and Lyft Drivers’ Median Hourly Wage Is Just $3.37 (Update: Author Admits Flaws)

March 7th, 2018

Awake Goy

Uber and Lyft Drivers’ Median Hourly Wage Is Just $3.37 (Update: Author Admits Flaws)

March 5th, 2018

Update: Uber, Lyft Drivers Might Make More than $3.73/Hour, MIT Paper Author Says

Via: USA Today:

After a working paper published by the Massachusetts Institute of Technology claimed 74% of Uber and Lyft drivers take home less than minimum wage, the paper’s author said his analysis might be wrong.

The paper suggested median profit for Uber and Lyft drivers is $3.37 per hour after vehicle expenses but before taxes, far less than the federal minimum wage in most states. Findings were based on a survey of more than 1,100 Uber and Lyft drivers.

Uber and Lyft criticized the findings, saying the survey questions were flawed.

Stephen Zoepf, the paper’s lead author, responded to the criticisms Monday, thanking Uber’s chief economist for his feedback.

“In retrospect the survey questions could and should have been worded more clearly,” Zoepf said in a statement. He also called on Uber to make an “honest and public assessment” of the range of ride-hailing driver profit after the cost of acquiring, operating and maintaining a vehicle.

Zoepf proposed two different results. In an adjusted scenario using monthly revenue numbers when available and calculating hourly numbers using the working schedule reported, median profit rises to $8.55. In another method, using reported hourly revenue numbers when available, median profit rises to $10 per hour.

The author said he “will be conducting a thorough revision of the paper.”

In both scenarios, some drivers are still making less than minimum wage in their state and some drivers lose money, according to Zoepf.

—

Via: Guardian:

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 Technologyâ€™s Center for Energy and Environmental Policy Research. The report â€“ which factored in insurance, maintenance, repairs, fuel and other costs â€“ 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.

<!–