*(Via Time) – $3.37! That’s the paltry median hourly profit for Uber and Lyft drivers—after expenses are factored in—according to a new study.
The paper, from the MIT Center for Energy and Environmental Policy Research, is based on a survey of over 1,100 rideshare drivers. The results indicate that the “median profit from driving is $3.37 per hour before taxes, and 74% of drivers earn less than the minimum wage in their state.”
[UPDATE: After the working paper was published, Uber’s chief economist John Hall published a response stating that there was “a major error in the authors’ methodology.” Stephen Zoepf, one of the paper’s authors, then responded by saying that “Hall’s specific criticism is valid,” and acknowledged that the “survey questions could and should have been worded more clearly.”
If he followed the advice in Hall’s criticism, Zoepf explained, median profit would rise to somewhere between $8.55 to $10 per hour for Uber and Lyft drivers, not $3.37 as initially indicated in working paper. Zoepf said he would be “conducting a thorough revision of the paper and will update it” in the next few weeks.
READ THIS: WENDY WILLIAMS OPENS UP ABOUT SON’S FORMER FORMER USE OF SYNTHETIC MARIJUANA
Here is my statement regarding the recent CEEPR working paper “The Economics of Ride Hailing.” pic.twitter.com/lHJkaB0frX
— Stephen Zoepf (@StephenZoepf) March 5, 2018
After Zoepf released his response to Uber’s Hall, Lyft also issued a statement: “When an academic study changes so dramatically in just a matter of days, that’s a real flag. While the revised results are not as inaccurate as the original findings, driver earnings are still understated. MIT’s study has fundamental methodology problems.”
Get the FULL story at Time.
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