MIT Study: Uber, Lyft Drivers Earning A Median Profit Of $3.37 Per Hour

[gyroscope]

Want to make less than workers at Walmart and McDonalds? Become a Rideshare driver!


NPR, March 2, 2018

The vast majority of Uber and Lyft drivers are earning less than minimum wage and almost a third of them are actually losing money by driving, according to researchers at the Massachusetts Institute of Technology.

A working paper by Stephen M. Zoepf, Stella Chen, Paa Adu and Gonzalo Pozo at MIT's Center for Energy and Environmental Policy Research says the median pretax profit earned from driving is $3.37 per hour after taking expenses into account. Seventy-four percent of drivers earn less than their state's minimum wage, the researchers say.

https://www.npr.org/sections/thetwo-way/2018/03/02/590168381/uber-lyft-drivers-earning-a-median-profit-of-3-37-per-hour-study-says

[democratisphere]

1. Uber and Lyft are sh'tty deals for the drivers and most are being royally screwed!

Once the drivers realize how much they are being screwed, Uber and Lyft will be out of business.

[NewJeffCT]

4. I've heard they have very high turnover

people think it's a great idea, but when they actually do it, they make very little money and most get out.

[Mosby]

6. when I was young I delivered pizza and sandwiches

For a while.

It was really good money until I started incurring car expenses like tires etc.

[FSogol]

2. They also get a big surprise when tax time comes around. N/t

[Mosby]

3. why?

I assume they are independent contractors and are able to depreciate their car and claim other expenses as well like fuel, insurance, phone etc.

[gyroscope]

7. Yes

but its a headache having to keep track of all your miles driven, keeping track of all expenses and saving receipts. not worth it when you're making so little. and the IRS tyrants are waiting to come down on you for making the smallest error in your record keeping.

[FSogol]

13. Self-employment tax and other surprises. Since they are

Not taking taxes out, they will owe more than they think.

[California_Republic]

5. Yup... when they give me a ride for $5

I am already thinking that’s really cheap but they still have to pay Uber a chunk and pay for the gas, car insurance, upkeep. If it weren’t for our tips They would be screwed.

[gyroscope]

8. On top of all that

they have to worry about Uber and Lyft stealing their tips. Welcome to the gig economy!


Uber Settles Class Action Claim of Stealing Driver Tips

http://blogs.findlaw.com/decided/2017/02/uber-settles-class-action-claim-of-stealing-driver-tips.html

[California_Republic]

10. What! Maybe Ill give them cash.

[Major Nikon]

11. I always give them cash

There's simply no way I'm going to use the app to tip them.

[zipplewrath]

9. How does that compare?

I'm curious how this would compare to other marginal employment situations. I'm thinking of things like Pedi-cabs, acting, modeling, musicians, etc.

[Major Nikon]

12. I'd be more interested to see how it compares to taxi drivers

Lots (if not most) taxi drivers are considered "private contractors" and they are even more beholden to the company that dispatches them. Pretty much all the problems described by MIT already existed before Uber and Lyft and I'm not convinced they were better off.

[msongs]

14. that's BEFORE taxes are taken out. real take home is less than that nt

[gyroscope]

15. You're right

...just when you though it couldn't get any sadder. Uber and Lyft has suckered a lot of people into turning themselves into virtual slaves.

I never saw the appeal of it. They are glorified taxi drivers - the kind of a job that used to be done overwhelmingly by Arab and Indian immigrants because no "real" American wanted to do it has become glamorized by slick marketing and now you see a lot of white people doing it.

[EleanorR]

16. But gig economy sounds so hip!