The Economics of Ride – Hailing: Driver Revenue, Expenses, and Taxes

Asher TobinIn The News, Passenger Transportation

(The Guardian) Uber and Lyft drivers’ median hourly wage is just $3.37, report finds

A study of 1,100 Uber and Lyft drivers in the US has found that, when expenses are taken into account, 74 percent of people earn below minimum wage salaries.

Unsustainable: Nearly half of drivers earn so little they actually qualify to report losses on their tax returns. “This business model is not currently sustainable,” Stephen Zoepf, the Stanford University researcher who led the study, told the Guardian. “The companies are losing money … and the drivers are essentially subsidizing it by working for very low wages.”

Gender gap: As we recently reported, women who drive for Uber have it even worse. They consistently take home less than men because of how the company’s pay system grades drivers.

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—Michael Reilly MIT Technology Review 

Read More at the The Guardian