Ride-sharing drivers earn less today than five years ago
5 years ago, Uber was an ideal job for people who wanted to have a flexible schedule, independence that traditional jobs didn’t offer, and a good income. But in 2018, drivers jobs are not as lucrative as it was in 2013. A new study by the JPMorgan Chase Institute reveals that drivers of ride-hailing services (like Uber and Lyft) made 53 percent less money in 2017 than they did in 2013.
According to the study, the main reason for the payment drop is that driving for ride-sharing companies has become more popular thanks to the growth in the number of transportation jobs. But demand hasn’t increased to meet the increased number of drivers. This was followed by the trip prices fall. Today, ride-hailing platforms are paying drivers lower rates than in 2013.
A spokesperson for Uber said that the low payments are caused by the drivers who prefer to work part-time. Drivers in 2018 are working fewer hours than 5 years ago. 58 percent of drivers work just three months or less each year for the online ride-sharing services (it equals about 10 hours per week). Fewer than 25 percent of drivers performed gig work for seven months or more, JPMorgan Chase Institute reports.
In a previous research JPMorgan concluded that one of every six ride-sharing drivers is a newcomer. When talking about the time people are driving for such platforms, more than a half stays for no longer than a year. The data is derived from a sample of 39 million verified JPMorgan accounts studied for almost 6 years.