Home / Tech News / Uber, Lyft drivers earn low pay, study says, but Uber slams ‘major discrepancy’ in methodology

Uber, Lyft drivers earn low pay, study says, but Uber slams ‘major discrepancy’ in methodology

A Massachusetts Institute of Know-how Research discovering that just about three-quarters of Lyft and Uber drivers earn lower than the minimal wage is being revisited after it was challenged by Uber’s chief economist on Twitter.

The research, by the MIT Heart for Power and Environmental Coverage Analysis, discovered that drivers’ median pretax revenue was $three.37 per hour, utilizing outcomes from a survey of greater than 1,100 staff of the trip hailing corporations. As well as, the research discovered that 30 % of drivers are literally shedding cash as soon as automobile bills are taken under consideration.

Dara Khosrowshahi, Uber’s CEO, criticized the MIT study in a tweet on Friday as “Mathematically Incompetent Theories (a minimum of because it pertains to ride-sharing),” and linked to a response by Uber chief economist Jonathan Corridor that challenged the research’s methodology.


Corridor says the MIT research makes use of “inconsistent logic” to give you its figures, that are decrease than different research—one from The Rideshare Man confirmed common hourly earnings of $15.86 whereas the corporate’s personal survey in partnership with a Princeton College professor put common wages at $19.05 in 20 of the ride-sharing firm’s largest markets.

“You will need to be aware that we don’t take difficulty with the paper’s estimation of prices. They’re very a lot according to previously-reported prices related to driving,” Corridor wrote in his response. “However the methodology used to reach on the eye-poppingly low earnings numbers is deeply flawed for the explanations outlined above.”

Khosrowshahi has since tweeted a because of MIT for “listening and revisiting” the research.

Some individuals took to Twitter to query the research’s findings.

The MIT research’s lead writer, Stephen Zoepf, instructed Reuters in an e mail on Saturday, “I can see how the query on income may need been interpreted in another way by respondents” and referred to as Corridor’s rebuttal considerate.

“I’m re-running the evaluation this weekend utilizing Uber’s extra optimistic assumptions and will have new outcomes and a public response acknowledging the discrepancy by Monday,” he wrote.

1520273937922 - Uber, Lyft drivers earn low pay, study says, but Uber slams'major discrepancy' in methodology

A Lyft signal is seen inside a automotive in Los Angeles.


Fox Information has reached out to Zoepf for touch upon any up to date research findings. 

In the meantime, drivers had combined emotions concerning the research. 


One driver in Las Vegas, Nicole Belkin, told KTNV that she normally earns round $800 per 30 days utilizing each apps part-time. However she then has to consider insurance coverage, a $300 automotive cost, and filling up with fuel typically each different day.

Nonetheless, one other driver instructed KTNV that he normally makes greater than $50,000 a yr and by no means makes lower than $25 per hour. 

Christopher Carbone is a reporter for FoxNews.com. Observe him on Twitter @christocarbone.

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