Home » Money

Uber, Lyft drivers actually earn less than minimum wage, MIT survey suggests

05 March, 2018, 00:07 | Author: Melinda Barton
  • Image smith collection  gado  Getty Images

The investigation, seeking to get a full picture of the economics of ride-sharing services beyond the companies' own numbers, combined self-reported revenue figures with driver surveys and vehicle maintenance information. In fact, many times it won't even net you a taxable income, according to this study. In 2017, courts in both North Carolina and NY ruled in Uber drivers' favor to be classified as employees, which could eventually entitle them to higher pay and more benefits.

Uber and Lyft drivers in the U.S. 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. "The companies are losing money. and the drivers are essentially subsidizing it by working for very low wages".

When accounting for vehicle expenses, the study also found that 30 percent of drivers actually lose money for each mile they drive.

According to a paper written by Stephen M. Zoepf, Stella Chen, Paa Adu and Gonzalo Pozo at MIT's Center for Energy and Environmental Policy Research, the median pretax profit earned from driving is $3.37 per hour after taking expenses into account.

Although drivers have still expressed a need for more income, the low-priced alternative to taxis and auto ownership is making new inroads into other traditional transportation avenues.

As of 2017, both Uber and Lyft allow (but do not require) customers to tip their drivers through their respective mobile apps. "In 16 of the 18 markets available, the median earnings per hour of Uber's driver-partners exceeded the average hourly wage of taxi drivers and chauffeurs".

It was only previous year that Uber introduced the option to tip drivers into its app for customers. The tax deduction is higher than the actual cost-per-mile, facilitating an estimated $4.8 billion in untaxed income, the study said.

The MIT paper then incorporated the cost-per-mile for driving for Uber.

A Lyft spokesperson said that the company had not yet reviewed the study in detail, but suggested that the researchers had made "questionable assumptions". Minimum wage is $7.25 - more than double.

A spokesperson for Uber told The Guardian the study was "deeply flawed" and said they'd reached out to the authors.



Are there actually 5 types of diabetes?
Another group facing serious complications was composed of relatively young, insulin-deficient patients. They discovered one autoimmune type of diabetes and an additional four subtypes of type 2 diabetes .

Unidentified man wounded in shooting near White House
Police have sealed off traffic on streets near the White House, and Pennsylvania Avenue has been shut to pedestrians. The president was set to return to Washington later Saturday to attend the annual Gridiron Club media dinner.

Uber Health lets providers schedule rides for patients
Whorley, who has been driving for Uber for more than two years, is more skeptical about picking up people without smartphones. Uber already has over 100 healthcare organizations on the platform , thanks to a private beta that began last summer.

Penn State RB Barkley lights up NFL Scouting Combine
Mike Mayock described his 40-yard dash performance perfectly, calling it, "a historically bad time", as reported by Sporting News. The on-field workouts include the all-important 40-yard dash, timing, positional skill drills and three-cone and shuttle drills.

Britain's Theresa May sets out vision for frictionless trade after Brexit
May concluded: "My message to our friends in Europe is clear: We know what we want, we understand your principles". How's that possible? Because May left the option of future divergence from the European Union on the table.

MA man charged with sending white powder to Trump Jr
Debbie Stabenow , of MI , and referenced Larry Nassar, the former us gymnastics doctor convicted of abusing his patients. He could be sentenced to up to 10 years in prison if found guilty of the most serious charge, that of mailing a threat.

BOE's Mark Carney Calls For Regulatory Approach Towards Cryptocurrencies
Mark Carney, Governor of the Bank of England, in a panel to discuss central bank communication on November 14, 2017 in Frankfurt, Germany.

Trump Calls For Execution Of Drug Dealers During Anti-Drug Summit
They just kill them, '" a senior official told the publication. "So we're going to have to be very strong on penalties".

Gary Neville gets busy listing players better than Mohamed Salah
Indeed, the Reds only face three top-half teams in Manchester United , Everton and Chelsea , and they are generously spread out. Alexander-Arnold, a 19-year-old local product, feels his game can only improve from working with such high-calibre team-mates.

Russian Federation vetoes anti-Iran UN Security Council resolution
Since Russia is a permanent member of the Security Council, the United Kingdom draft failed to be adopted. Today, Russia protected the terrorist-sponsoring regime in Iran.