Study Finds Uber, Lyft Drivers Earn Median Income Of $3.37 Per Hour

Rideshare company Uber cited figures in 2014 that UberX drivers in New York City and San Francisco earned between $70,000 and $90,000 annually, provided they worked at least 40 hours a week. Four years later, a new study found that the median incomes of Uber and Lyft drivers may be significantly lower than that figure.

According to a study from the MIT Center for Energy and Environmental Policy Research, the median income of Uber and Lyft drivers before taxes was merely $3.37 per hour.

The Guardian obtained a response from Uber, which criticized the study’s findings as false.

“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,” an Uber spokesperson wrote.

MIT’s findings concluded that 74 percent of drivers earned less than minimum wage in their state and 30 percent actually lost money when factoring in vehicle expenses. The paper also found that 73.5 percent of ride-sharing app driver profit in the U.S. was untaxed. More than 1,100 drivers were surveyed over the course of the study.

Notably, 80 percent of the drivers surveyed said they worked fewer than 40 hours a week. As contractors, they would likely also hold a separate part-time job to bolster their income.

In the past year, there has been some controversy surrounding whether an Uber driver is an independent contractor or an employee. In 2017, courts in both North Carolina and New York ruled in Uber drivers’ favor to be classified as employees, which could eventually entitle them to higher pay and more benefits.

As of 2017, both Uber and Lyft allow (but do not require) customers to tip their drivers through their respective mobile apps.