I believe it to be true. But the median hourly wage is probably that low because there are so many people driving unsuitable vehicles. If they only counted drivers driving suitable vehicles I think it would be closer to minimum wage than half of minimum wage.
Also, I think the study used $0.30/mile for expenses. So the delta between the IRS mileage number and $0.30 is a real benefit, especially if you are using a mostly fully depreciated vehicole for the work, which would be wise given the pay.
I use a 2007 Honda CR-V (167k miles) which will be DQed in November based solely on age and mileage, even though car condition has never been flagged in over 2,500 rides.
Here is my current week through Friday, no big snow storms that can double earnings, but also a part of the year that tends to run pretty busy here... a pretty typical week. We are at $1/mile, my commission 20% (lower than most), I accept roughly 1 out of 20 offers and work Lyft only. I work only busy times and expanding hours would lower my hourly rate substantially. I GPS track all miles. I have been doing this for 2 1/2 years, so may not be a typical driver.
Earnings after commission: $239
Earnings after expenses: $173
Hourly rate: $17.30
Of the 19 Lyft offers I decline for each ride I provide, probably 10 are flat out money losers, and another 5 would be minimum wage or less. Or to put this another way, and to show how seriously compromised this business model is, to get just the numbers above this week, I repectfully declined to provide Lyft services to over 300 riders (that's declining 30 rides per hour).
As the article states, it is totally possible and actually very easy, to literally lose money by driving rideshare, and it's encouraged so that Lyft can provide better coverage.
The article says thirty percent of drivers are losing money. I believe it. I also believe most of those drivers don't realize they're losing money. How many know their income per mile, including dead miles? How many know their cost to drive a mile? Too many think gas is their only expense. According to the article, over half a driver's income is taken away due to costs.
On the bright side, the article mentions the tax the typical driver pays is low due to the standard mileage rate deduction. “Several billion in untaxed income for hundreds of thousands of ride-hailing drivers nationwide,” sounds like they want drivers to pay more taxes.
You could simply be in the category of 1/4 drivers that makes more than min wage...
If you live in a market with a higher per mile rate you probably are. (Baltimore? just guessing here)
Baltamore UberX rates are close double per mile what some markets are..
Meaning you are getting close to double what a driver in say.. Orlando would be per paid loaded mile
$1.25 per mile listed rate= 93c per mile + 8-24c in time per mile paid to you. (varying with speed traveled of 20-60MPH)
50% paid mileage ratio and 30c cost per mile...
$1.01- 1.17 per paid mile
- 60c per paid mile in expenses at 50% paid mile ratio
or a profit per paid mile of 41c-57c
71c per mile 11c per minute turns into
53c per paid mile 8c per minute to the driver
61c-77c per paid mile depending on the speed driven with a customer.
Minus 60c per paid mile in costs, with a ratio of half of miles being paid
1c-17c profit in Orlando per paid miles
41c-57c in Baltamore?
Is there a big difference between 1-17c and 41-57c?