Mar 5, 201806:09 PMBlog
Study: Many Uber, Lyft drivers earn under minimum
According to a recent study, many Uber and Lyft drivers are earning less than minimum wage. Some drivers are even losing money after vehicle expenses like gas and insurance are taken into account.
The study, “The Economics of Ride-Hailing: Driver Revenue, Expenses and Taxes,” was conducted by researchers Stephen M. Zoepf, Stella Chan, Paa Adu, and Gonzalo Pozo from the Massachusetts Institute of Technology’s Center for Energy and Environmental Policy Research.
Approximately 74 percent of Uber and Lyft drivers earn less than the minimum wage in their state, and 30 percent of drivers are not earning enough money to cover the cost of operating their vehicles, the study found.
MIT researchers surveyed over 1,100 drivers and found the median profit among drivers to be $3.37 per hour before taxes. Drivers earn about $0.59 per mile and incur costs of about $0.30 per mile. The average Uber and Lyft driver earns about $661 per month. The median, $310 per month.