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No one can seem to agree on how much Uber and Lyft drivers actually get paid (UBER, LYFT)
Jul 13, 2020
Two competing academic studies recently set out to uncover exactly what Uber and Lyft drivers earn, and ended up with wildly different results.
The studies one conducted by Cornell University's Industrial and Labor Relations school and the other by researchers at The New School and University of California, Berkeley focused specifically on drivers in Seattle who work for both major ride-hailing platforms.
In the Cornell study, drivers were determined to earn a median wage of $23.35 in the other, $9.73.
So, why did two studies examining driver pay in the same city come to such different conclusions?
One reason the numbers are so wildly different is because of the source of the data. Cornell used driver earnings data that was given to them by Uber and Lyft the study analyzed data from 14,109 drivers during a week in October 2019.
The UC Berkeley/New School study, on the other hand, analyzed data from King County, the American Community Survey, and "limited data" from Uber. (They noted in the study that Lyft declined to provide any data.) The researchers also conducted their own online survey of 6,500 Seattle drivers.
Another key difference has to do with driver expenses, such as the cost of a car, vehicle maintenance, gas, and more. The Cornell study found that for every $10 an Uber or Lyft driver grossed, they had an average of $1 in expenses. The UC Berkeley/New School study estimated those costs to be much higher the study found that while gross driver pay is $21.53 per hour, the driver incurs $11.80 in expenses, meaning they end up earning less than minimum wage.
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