Industry Research

How Much Profit Do TNC Drivers Really Make?

Posted on March 7, 2018
( photo)
( photo)

Uber and Lyft are pushing back on the findings of an MIT study, and last weekend, Uber’s chief economist Jonathan Hall challenged the paper’s methodology. Per Reuters, Hall claimed that a misleading survey question and “inconsistent logic” meant that the “earnings figures suggested in the paper are less than half the hourly earnings numbers reported in the very survey the paper derives its data from.”

The MIT paper’s lead author Stephen Zoepf agreed and said he’d look to see whether re-running the analysis with different assumptions would result in different data—and on Monday, he tweeted a statement showing that using two different methodologies suggested by Hall resulted in median wages between $8.55 – $10 an hour after expenses.

But this revised version still finds that between 41% and 54% of drivers make below the 2016 minimum wage in their state after expenses. article here

Related Topics: driver pay, employee wages, TNCs, Uber

Comments ( 2 )
  • Dave

     | about 13 days ago

    As usual, no one is looking at the cost per mile. As most TNC drivers are paid about $1.00 per mile, the cost of running a vehicle could be more than double than that. One thing people don't see especially the ones doing the study, the real truth is that people using they own cars are wearing out the vehicle they own and using up the life of the vehicle. $1.00 per hour does NOT cover the loss of the cost per mile. Another example, one accident, especially if this is the drivers only car, they become financially in the hole so bad, they are done! In reality, look at the money earned as a real bad loan. No money could be made. There is no way even minimum wage could be made. Most TNC drivers do this for a short period of time, then get a real job. TNC work is not a real job. The uninformed public really are not business smart.

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