Uber, Lyft drivers make a median hourly profit of $3.37
According to a study published by the MIT Center for Energy and Environmental Policy Research, Uber and Lyft drivers in the US earn a median profit of $3.37 per hour before taxes, with 74% of drivers earning lesser than the minimum wage standard set in the state where they operate.
Here's a roundup on the MIT study which raises fresh concerns around ride-hailing services.
Report highlights abysmally low driver revenue
The study, published by MIT, raises fresh concerns about labor standards for workers on gig economy platforms like Uber and Lyft.
The study says Uber and Lyft drivers in US make a median hourly profit of $3.37 with 30% of drivers losing money on the job and 74% drivers earning less than the minimum wages prescribed in the states they work at.
Uber and Lyft's business are depriving the public purse too
As per the study, a driver earns a median of $0.59 per mile while incurring a cost of $0.30 per mile and that almost 30 per cent of drivers incur expenses exceeding their revenue.
The research also suggests that nearly 74% of the drivers' profits are going untaxed given how "standard mileage deduction ($0.54/mile in 2016) far exceeds median costs per mile of $0.30/mile."
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Uber criticizes study, says methodology and findings are deeply flawed
"While the paper is certainly attention grabbing, its methodology and findings are deeply flawed. We've reached out to the paper's authors to share our concerns and suggest ways we might work together to refine their approach", said an Uber spokesperson to the Guardian.
About the research
Titled 'The Economics of Ride-Hailing: Driver Revenue, Expenses and Taxes', the study was conducted by the MIT Center for Energy and Environmental Policy Research.
More than 1,100 Uber and Lyft ride-hailing drivers combined with detailed vehicle cost information and factors such as fuel, insurance, maintenance and repairs were examined to derive an hourly median profit.