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Uber drivers are earning 53% less than they did in 2013

The report outlines some bleak numbers for drivers who work for ride-hailing apps like Lyft and Uber, though those companies don't quite agree with the researchers' methodology.

  • A new report suggests earnings have been steadily falling for drivers with companies like Uber and Lyft.
  • Uber suggests the results are misleading because they don't examine hourly earnings.
  • However, other reports suggest that even hourly earnings for ride-sharing drivers are often comparable to minimum wage.

Drivers for apps like Uber and Lyft are, as a whole, earning significantly less money compared to a few years ago, according to a new study from the JPMorgan Chase Institute.

The study examined 38 million payments made through 128 online platforms, which also included leasing apps like Airbnb, to 2.3 million distinct Chase checking accounts between October 2012 and March 2018.

It showed that, between 2013 to 2017, the average monthly payments to drivers who worked for a transportation app in a given month declined from $1,469 to $783, a decrease of 53 percent.

Why are driver wages apparently declining? The study offers several reasons, including drivers working fewer hours, lower trip prices, decreased rider demand and increased driver supply, and platforms paying drivers lower rates.

However, the study didn't examine hourly wages, but rather looked at "only their product, earnings."

A different perspective from Uber and Lyft

Uber says this makes the results misleading.

In a blog post, Libby Mishkin, a senior economist at Uber, notes that the number of total drivers with the company increased from 160,000 in 2014 to 900,000 in 2018. Most of those drivers only work part time. In fact, the study found that, among people paid by ride-sharing services in a given year, 58 percent of drivers earned money in just three or fewer months.

Uber says the number of its occasional drivers is growing, which lowers total monthly earnings statistics.

"The distinction between monthly and hourly average earnings in this context is an important one: if the share of our partners who drive only occasionally has increased over time, as it has, it stands to reason that the average of every driver's monthly (or, for that matter, weekly or yearly) earnings would decrease," wrote Mishkin.

"In our view, a more appropriate metric for evaluating earnings among the diverse and evolving group of drivers would be average hourly earnings, which according to academic research produced in partnership with Professor Alan Krueger of Princeton and John Horton of NYU have remained stable over time."

A spokesperson for Lyft echoed a similar sentiment.

"The fact that this study did not examine hourly earnings, the metric that drivers care most about, has resulted in misleading headlines," the spokesperson said. "Many more drivers are choosing to earn with Lyft on a part-time basis, often fewer than ten hours per week, and they tell us they truly value the flexibility Lyft provides."

How much do Uber drivers earn hourly?

A pair of studies from 2018 provide an idea of how much an Uber driver earns by the hour.

One study, published in February from researchers at the Massachusetts Institute of Technology's Center for Energy and Environmental Policy Research, found that the median profit of Uber drivers was $8.55 to $10 an hour. (Note: The study authors arrived at this figure after revising their findings.)

Another study, from the Economic Policy Institute, a left-leaning think tank in Washington, D.C., showed that Uber drivers earn 24.77 in hourly passenger fares. However, after accounting for vehicle expenses, health insurance and Uber's commissions and fees, drivers earn just $9.21 in hourly wages–an amount comparable to the minimum wage of many states.

Again, Uber criticized the report, suggesting it doesn't factor in "the flexibility drivers tell us they value and cannot find in traditional jobs."

In any case, both Uber and the recent JPMorgan Chase study seem to agree that most drivers for ride-sharing companies are working to supplement a more traditional income.

"...we do not find evidence that the Online Platform Economy is replacing traditional sources of income for most families," reads the JPMorgan Chase study. "Taken together, our findings indicate that regardless of whether or not platform work could in principle represent the "future of work," most participants are not putting it to the type of use that would usher in that future."

The “new normal” paradox: What COVID-19 has revealed about higher education

Higher education faces challenges that are unlike any other industry. What path will ASU, and universities like ASU, take in a post-COVID world?

Photo: Luis Robayo/AFP via Getty Images
Sponsored by Charles Koch Foundation
  • Everywhere you turn, the idea that coronavirus has brought on a "new normal" is present and true. But for higher education, COVID-19 exposes a long list of pernicious old problems more than it presents new problems.
  • It was widely known, yet ignored, that digital instruction must be embraced. When combined with traditional, in-person teaching, it can enhance student learning outcomes at scale.
  • COVID-19 has forced institutions to understand that far too many higher education outcomes are determined by a student's family income, and in the context of COVID-19 this means that lower-income students, first-generation students and students of color will be disproportionately afflicted.
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Masturbation boosts your immune system, helping you fight off infection and illness

Can an orgasm a day really keep the doctor away?

Sexual arousal and orgasm increase the number of white blood cells in the body, making it easier to fight infection and illness.

Image by Yurchanka Siarhei on Shutterstock
Sex & Relationships
  • Achieving orgasm through masturbation provides a rush of feel-good hormones (such as dopamine, serotonin and oxytocin) and can re-balance our levels of cortisol (a stress-inducing hormone). This helps our immune system function at a higher level.
  • The surge in "feel-good" hormones also promotes a more relaxed and calm state of being, making it easier to achieve restful sleep, which is a critical part in maintaining a high-functioning immune system.
  • Just as bad habits can slow your immune system, positive habits (such as a healthy sleep schedule and active sex life) can help boost your immune system which can prevent you from becoming sick.
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The biology of aliens: How much do we know?

Hollywood has created an idea of aliens that doesn't match the science.

The biology of aliens: How much do we know? | Michio Kaku, ...
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  • Ask someone what they think aliens look like and you'll probably get a description heavily informed by films and pop culture. The existence of life beyond our planet has yet to be confirmed, but there are clues as to the biology of extraterrestrials in science.
  • "Don't give them claws," says biologist E.O. Wilson. "Claws are for carnivores and you've got to be an omnivore to be an E.T. There just isn't enough energy available in the next trophic level down to maintain big populations and stable populations that can evolve civilization."
  • In this compilation, Wilson, theoretical physicist Michio Kaku, Bill Nye, and evolutionary biologist Jonathan B. Losos explain why aliens don't look like us and why Hollywood depictions are mostly inaccurate.
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Live on Tuesday | Personal finance in the COVID-19 era

Sallie Krawcheck and Bob Kulhan will be talking money, jobs, and how the pandemic will disproportionally affect women's finances.

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