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BREAKING NEWS

New study shows most Uber, Lyft drivers earn far less than minimum wage
And about one third are actually losing money

March 02, 2018




Cover page of Uber driver pay study.
Chronicle staff

(NATIONAL) – A new study shows the vast majority of Uber and Lyft drivers are earning far less than minimum wage and almost a third of them are actually losing money by driving for hire, according to researchers at the Massachusetts Institute of Technology.

NPR (National Public Radio) has a report on a working research paper by Stephen M. Zoepf, Stella Chen, Paa Adu and Gonzalo Pozo at MIT's Center for Energy and Environmental Policy Research.

It says their study shows “the median pretax profit earned from driving is $3.37 per hour after taking expenses into account,” and a full 74% of drivers earn less than their state's minimum wage.

Again, this is after taking the driver’s expenses into account for their earnings or lack thereof. The study also found that 30% of drivers are actually losing money once vehicle expenses are included.

The conclusions of that study are based on surveys of more than 1,100 drivers who told researchers about their revenue, how many miles they drove and what type of car they used.

An Uber spokesperson disagrees with the results of the study saying, in a statement to a British newspaper that the study’s methodology and findings are “deeply flawed,” and that Uber has “reached out” to the paper's authors to share the company’s concerns and suggest ways “we might work together to refine their approach."

More here .





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