Controversial MIT Study Points to Low Wages for Ride-Hailers

[admin]

Lump a bunch of MIT researchers into an Uber and they’ll come out with a thesis. In this case, a new study titled The Economics of Ride-Hailing: Driver Revenue, Expenses and Taxes.

The sparknotes:

• Drivers for Uber and Lyft make a median hourly profit of $3.37
• 74% of drivers earn less than minimum wage 
• 30% of drivers lose money every mile

Who (or whatÂ’s) to blame? Gig economy business models that saddle employees with fixed costs (e.g. cars), while their income shrinks due to industry competition.

But Uber said we’ve got some numbers of our own: Two studies from 2015 and 2017 put average hourly earnings at $19.04 and $21.07, respectively. In a weekend post on Medium, it also convincingly pointed out how MIT’s methodology was flawed. 

Then there was thisÂ…

MIT’s lead author shouldered the criticism and agreed to take another look. So for now, we’re still left wondering: is it better to have a minimum wage job or “be your own boss” in the gig economy?

https://www.morningbrew.com/stories/controversial-mit-study-points-low-wages-ride-hailers/

[James Thomas Rook Jr.]

Answer: Rickshaws !!

...smart pipples, dem Chinee....