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Uber Drivers Earn the Equivalent of $9.21 in Hourly Wages

Discussion in 'News' started by SLuz, May 15, 2018.

  1. SLuz

    SLuz Active Member

    Location:
    LA
    --Mishel provides several estimates of the size of Uber relative to the overall economy. Approximately 833,000 people drive for Uber in a year, accounting for 0.56 percent of all employment. But such an estimate ignores that Uber drivers have high turnover, working an average of three months and average only 17 hours per week. Adjusting for the part-year and part-time character of the work means that Uber drivers equate to 133,000 full-time, full-year workers, or just 0.07 percent of overall national full-time, full-year equivalent employment. Given that Uber is roughly two-thirds of the gig economy, this means that gig work accounts for 0.1 percent of national employment.

    Mishel uses Uber’s administrative data on fares generated per hour worked to calculate the Uber driver “wage”—comparable to the wages reported for W-2 employees—by deducting Uber’s fees, such as booking fees and commissions, vehicle expenses, the taxes paid by self-employed drivers, and the cost of a modest benefits package. Uber drivers generate passenger fares of $24.77 each hour, but Uber receives $8.33 an hour in commissions and fees, about a third of passenger fares. Vehicle expenses, after taking into account their tax deductibility, cost drivers $4.78 each hour. This leaves drivers with a compensation of $11.77, on which they must pay $0.90 for the extra Social Security and Medicare taxes paid by the self-employed. The maximum drivers can direct towards their own living expenses, therefore, is $10.87—but only if they do not secure any health and retirement plans for themselves, or replace the unemployment insurance and workers compensation they would enjoy as payroll employees. If drivers provide themselves a very basic benefits package then their income, equivalent to the wages earned by regular employees, is just $9.21.--

    excerpt from https://www.commondreams.org/newswire/2018/05/15/uber-drivers-earn-equivalent-921-hourly-wages
     
  2. SEAL Team 5

    SEAL Team 5 Well-Known Member

    Location:
    Phoenix
    Driving:
    Livery

    When the hell did we get a raise?
     

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