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

[luckyshot]

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.

Quick someone tell me about the wonders of the unregulated market and how competition works for everybody.

And while, you're at it, make sure to dump on the medallion system that allowed cabbies to make a living for generations.
https://www.npr.org/sections/thetwo...g-a-median-profit-of-3-37-per-hour-study-says

 

[Rational Poster]

Now we just need to get an app for the police and road construction, right @Greoric ?

 

[Rod1]

So why are they working for Uber again?

 

[zebby23]

Wow that is terrible. I always wondered how the costs of the rides could be so cheap and people still make money. I think I have my answer

 

[BudKing8806]

Who the fuck made them sign up to drive for these companies again?

 

[zebby23]

So why are they working for Uber again?

I think it sounds good as a 2nd job but the article states that 96% of Uber drivers don't last a year

 

[Big Nasty Edison]

Wait until self aware cars replace them.

 

[BudKing8806]

Wow that is terrible. I always wondered how the costs of the rides could be so cheap and people still make money. I think I have my answer

You should give them a fat tip next time you get a ride. Make it fair for them dude

 

[sangreporsangre]

Eh I'm a little skeptical of this. At least with Uber here in Toronto, not sure about other places. Maybe this is just for the US. But why the hell would people quit their jobs to drive for Uber full-time if they're making such a low wage? Because I've talked to quite a few drivers who have told me that's just what they've done. I mean how is Uber still around if 1/3 of the drivers are losing money doing it?? There's some Hollywood accounting going on here, or it's a case of "lies, damn lies, and statistics".

 

[zebby23]

You should give them a fat tip next time you get a ride. Make it fair for them dude

lol i do tip

 

[PolishHeadlock]

So why are they working for Uber again?

This.

If the market is oversaturated with drivers then the drivers will quit which will raise the wages

 

[BudKing8806]

lol i do tip

Exactly. I'd assume that's where they make their money. Just like waitresses. I know some waitresses that make 1k-1500 a night in tips on weekends over on the island.

 

[PolishHeadlock]

Eh I'm a little skeptical of this. At least with Uber here in Toronto, not sure about other places. Maybe this is just for the US. But why the hell would people quit their jobs to drive for Uber full-time if they're making such a low wage? Because I've talked to quite a few drivers who have told me that's just what they've done. I mean how is Uber still around if 1/3 of the drivers are losing money doing it??

People don't quit there jobs for Uber.

It's usually supplemental income or a type of employment for people that are in school, transitioning to a new city etc...
the pros to it are it's easy to sign up for and you work the hours you want so you can make the schedule work for you.

I doubt there are many (if any) people that see it as long term solution

 

[panamaican]

Undercutting taxi drivers isn't highly profitable?

 

[sangreporsangre]

People don't quit there jobs for Uber.

It's usually supplemental income or a type of employment for people that are in school, transitioning to a new city etc...

You plus to it are it's easy to sign up for and you work the hours you want so you can make the schedule work for you.

I doubt there are many (if any) people that see it as long term solution

I've talked to a bunch of drivers who have, as I said in my post. Again that's here in Toronto. But even as a part-time gig, why the hell would you spend your free time driving around strangers when it actually costs you money? If it nobody was making any money doing this I doubt there would be so many damn Uber drivers around. I can click on the app any time of night and day and there are tons of cars in any area of the city.

 

[KILL KILL]

If you're only working during peak hours, I can't see this being true. Especially at around 2am when bars close.

 

[Lord Coke]

I asked my Lyft driver last night how much he makes an hour. He told me he averages 15 dollars working for Lyft which is to be fair a different company.

 

[panamaican]

I've talked to a bunch of drivers who have, as I said in my post. Again that's here in Toronto. But even as a part-time gig, why the hell would you spend your free time driving around strangers when it actually costs you money? If it nobody was making any money doing this I doubt there would be so many damn Uber drivers around. I can click on the app any time of night and day and there are tons of cars in any area of the city.

Sure, but what you're not tracking is driver turnover. How long do people stay in the business, that's a better predictor of if or how much the drivers are profiting.

 

[panamaican]

So why are they working for Uber again?

It's still better than $0.

 

[zebby23]

Exactly. I'd assume that's where they make their money. Just like waitresses. I know some waitresses that make 1k-1500 a night in tips on weekends over on the island.

Just up until recently I think they couldn't even accept tips. Happy they can now.