- How to stream Real Madrid vs. RCD Mallorca 3 Years Ago
- Trump accused of ‘using the language of ethnic cleansing’ regarding Kurds 3 Years Ago
- Hillary Clinton also thinks Tulsi Gabbard is a Russian bot 3 Years Ago
- TikTok girls dancing to voicemails from sh*tty exes is a vibe Today 12:34 PM
- Netflix reports strong growth—but it faces 3 major hurdles in Q4 Today 12:33 PM
- Telegram is hosting videos of extrajudicial killings in Syria Today 12:32 PM
- ‘El Camino: A Breaking Bad Movie’ tops 8 million viewers in first week Today 11:31 AM
- ‘Uncut Gems’ brings a high-stakes gambling risk to life Today 11:29 AM
- Mark Zuckerberg gives a revisionist history about why he started Facebook in big speech Today 10:52 AM
- Would Hitler be allowed to tweet? Today 10:21 AM
- Twitch star Amouranth caught driving while streaming Today 9:26 AM
- John Mulaney rails on e-scooters after ‘baby boomer’ nearly hits his dog Today 9:07 AM
- How to stream Chelsea vs. Newcastle Today 9:00 AM
- How to stream Atletico Madrid vs. Valencia Today 9:00 AM
- ‘Bully. Coward. Victim.’ dives deep into the life of an ‘evil’ man Today 8:42 AM
Uber drivers make a lot less money than you probably think
Job “freedom” comes at a price.
The report looks at three major markets Uber operates in: Denver, Detroit, and Houston, and comes up with an average hourly salary for each. The calculations were determined using internal Uber documents detailing more than one million rides and several thousand drivers.
Here is about how much an Uber driver makes in the three major markets before expenses:
- Detroit: $12.70/hr
- Houston: $14.18/hr
- Denver: $16.89/hr
But those figures don’t tell the whole story. Drivers must pay a number of expenses related to the job that further decrease their actual net income. BuzzFeed News found Uber’s data to be “highly abstracted,” oversimplifying a number of areas, so it used a few assumptions to created its own methodology to determine net income: (Uber called BuzzFeed’s methodology “solid,” for what it’s worth)
- Contractors drive a $16,000 vehicle, which has a 250,000-mile lifetime, resulting in depreciation costs of 6.4 cents per mile.
- Gas costs drivers $1.75 per gallon and the vehicle gets 25 miles per gallon of gas, resulting in gas costs of 7 cents per mile.
- Insurance, maintenance, and miscellaneous costs add up to $3,000 per year, or $1.50 per hour if the contractor drives 40 hours per week, 50 weeks per year.
Combining the hourly rates determined using Uber’s data, and the estimated expenses from BuzzFeed’s own methodology, shows just how little Uber drivers actually net per hour:
- Detroit: $8.77/hr
- Houston: $10.75/hr
- Denver: $13.17/hr
That $8.77 is only about a quarter higher than the minimum wage in Detroit. Denver drivers seem to fair the best out of the three markets, but still get an average annual salary under $30,000 after expenses.
An early 2015 study commissioned by Uber gets closer to the truth. It found that drivers in 20 cities, including New York, Los Angeles, San Francisco, and Boston, were grossing as little as $17 an hour. That is not a lot of money to live on in any of those cities, especially after the additional expenses are taken into account. It’s also an inflated number compared to what they receive today, as Uber’s rates were cut the following year.
While ride-hailing for Uber might sound like a job full of freedoms, the pay might actually keep you from enjoying those freedoms outside the workplace.
H/T BuzzFeed News