Uber, Lyft drivers make US$3.37 per hour

An Uber car waits for a client in Manhattan in June 2017. A study from MIT says most drivers are making less than minimum wage

The Guardian reports the situation isn't much better for the other 70%, as the median profit for drivers for the two ride-share companies is just $3.37 per hour before taxes.

Drivers for Uber and Lyft earn a median of $3.37 per hour, according to a new study by the MIT Center for Energy and Environmental Policy Research.

If you are driving for Uber or Lyft, you aren't going to make any money. Researchers surveyed over 1,100 drivers and analyzed vehicle cost data, including insurance, repairs, and fuel.

"This business model is not now sustainable", said Stephen Zoepf, executive director of Stanford University's Center for Automotive Research and coauthor of the paper. Someone might tell themselves that they already pay for their auto, so any money they make is pure profit. 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 spokesperson Michael Amodeo released a statement questioning the accuracy of the findings: "While the paper is certainly attention grabbing, its methodology and findings are deeply flawed. The businesses are being subsidized by [venture capital] money and the drivers are essentially subsidizing it by working for very low wages". "Because of this deduction, most ride-hailing drivers are able to declare profits that are substantially lower", the paper stated. They also said that detailed driver costs should be the subject of future study.

More news: China strongly opposes passing of Taiwan Travel Act by US

"Many drivers are doing this job part time and really only looking to make a few hundred bucks a week", Campbell said, "but figuring out how much they are actually earning can be quite challenging".

Independent studies on driver earnings are rare.

It was only past year that Uber introduced the option to tip drivers into its app for customers.

A study [PDF] put out this week, and carried out by Stanford researchers Stephen Zoepf, Stella Chen, Paa Adu and Gonzalo Pozo, has found that almost half of all drivers could actually claim that for tax purposes their work was a net loss.

Last year, the company shut down its U.S. auto leasing business after discovering it was losing 18 times more money per vehicle than it had previously understood.

Related News:



Most liked

MMA DFS Playbook: UFC 222 Cyborg vs. Kunitskaya
Amazon Prime Video is bringing UFC pay-per-view events to customers in the US starting on March 3 with " UFC 222: Cyborg vs. Not that long ago, the talk throughout MMA was whether " Cyborg " would take on bantamweight champ, Amanda Nunes next.

Scientists found Penguin super colony from space
The lack of humans and effects from climate change may contribute to the super colony's ability to thrive on the Danger Islands . It could also help them understand what is causing other populations to decline when these penguins are thriving.

Police Questions Netanyahu in Telecom Corruption Case
Netanyahu is suspected of acting to benefit internet giant Bezeq, also owned by Elovitch, for favorable coverage on the news site. In one case, Netanyahu allegedly received over $100,000 in gifts from Hollywood mogul Arnon Milchan and other wealthy associates.

Boston Red Sox announce that JD Martinez is official member of team
To play in front of fans that are just as passionate and love it just as much, it's exciting". "He's a complete hitter". He did an outstanding job a year ago with the D-backs and that's also something he's going to bring.

Firestar Diamond gets offers amid $2 bn fraud probe
The revenue department is reported to have written to 21 banks seeking to attach the assets of Nirav Modi's Firestar Diamond. On being asked by the CBI to join its investigation into the alleged fraud, Modi refused, saying he has " business abroad".

Here are Warren Buffett's 15 biggest stock investments
It was a note of caution that may reverberate as investors weigh whether the bull market will resume after this month's sell-off. Warren Buffett does not own a smartphone - and doesn't plan to for a long time - but he loves his Apple shares .

Turkey criticizes release of Kurdish leader
Ankara regards the PYD as an extension of the outlawed Kurdish PKK , which has waged a three-decade-long insurgency in Turkey. It will take some time", Krutina said.

Larger Rise in Stockpiles Than Forecasts Weigh on Oil Prices
The lower freight costs afforded by the economies of scale of the VLCC cargo opens up the global market for US-produced crude oil. A Bloomberg survey showed U.S. crude inventories probably increased by three million barrels last week.

Messi, Suarez, lead Barca Rout in La Liga
The goal only made better by the fact it bounced in off the post, with the keeper grasping at thin air as he dived. French winger Dembele played his part too late on as he crossed from the left for Suarez to complete a hat-trick.

New Yorker arrested in Japan over severed head in suitcase
Police have reportedly described the body parts as having no apparent injuries apart from where they were severed. The man was arrested for allegedly "confining" the woman in an apartment in Osaka, the Japan Times reported.

President Trump to attend Graham's funeral
His autobiography, "Just As I Am", published in 1997 appeared simultaneously on the three top best-seller lists in one week. The Charlotte-born preacher died Wednesday at his home in Montreat at age 99. "It's just memories", Hernandez said.

ESPN's Six Nations review: Player of the weekend, flop and more
The video shows Farrell shoving Wilson just after the Scot appeared to try and speak to England first five-eighth George Ford. Every player from both teams, when asked what happened, denied any knowledge of it.

PM Back To New Deputy
INITIAL 6.30am: Member for Maranoa David Littleproud has announced he will not vie for the position of Deputy Prime Minister. He is, of course, taking over from Barnaby Joyce .

Ireland head coach Joe Schmidt reflects on the win over Wales
It was the ideal end to the first half for the home team, giving them a vital 15-13 lead. Sexton eased the ball through the uprights to give Ireland a 15-13 lead at the break.

Small plane goes missing after takeoff from Grand Junction airport
According to Jon Kaupp, the four missing men included his father, Bill Kaupp and brother, Clint Kaupp, from New Dayton. On Thursday morning, the plane took off again en route to Albuquerque.