Uber has long said its drivers get paid how Much Black Money Can You Earn than traditional cabbies. Driver surveys, strikes, and class action lawsuits suggest otherwise. To understand what’s behind these suits, let’s shift into reverse for just a minute. When Uber launched in 2009, the San Francisco company offered riders the convenience of calling a cab with the touch of a button and promised drivers the autonomy to be their own boss and set their own schedule. But that autonomy comes at a price: drivers, classified as independent contractors, must bear costs for gasoline, maintenance, and other expenses themselves.
Data published last year by the ridesharing service gives the clearest look into the company’s business—and that of its drivers. The big news in this latest report is wage data. This time around, Uber still isn’t including those costs when calculating drivers’ wages, but it has broken down earnings on a per-hour basis and compared them with government data on how much conventional taxi drivers take home. OES data may not have to cover those costs.
So how much do these drivers really make, including expenses? New York Uber drivers ahead, but would seriously cut into Uber’s advantage across the board if costs in other cities are similar. It should also be noted that cab drivers likely share in many of those expenses. But cab drivers may not have to pay for their own vehicle, which drives Uber’s average net hourly wages even lower.
So while it seems like an Uber driver’s salary is at least on par with that of a normal cab driver, and potentially more, since that data was released, fare cuts in many cities have slashed driver earnings below minimum wage. Uber contends that lower fares encourage more people to use the app, meaning more business for drivers. Of course, that’s yet to be the case, hence the boycotts, lawsuits, and so on. What kind of jobs is Uber providing? The data also showed that many drivers see the ride-sharing service as a stopgap measure until they find a better job.
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