MIT study reveals that “profits are low” for drivers on ride-hailing apps
A new report from the MIT Center for Energy and Environmental Policy Research (CEEPR) has indicated that “profits from ride-hail driving are very low” and almost three quarters of drivers working on the apps in the US earn less than the minimum wage.
In a statement posted on its website, the CEEPR said the study drew upon the self-reported revenue, mileage and vehicle choices from over 1,100 Uber and Lyft drivers, together with other detailed data.
The study’s conclusions indicate that the drivers are not making a huge amount of money – and some actually end up out of pocket.
“Results indicate that profit from ride-hail driving are very low,” said CEEPR. “A Median driver generates $0.59 per mile of driving, and incurs costs of $0.30 per mile. 30% of drivers incur expenses exceeding their revenue, or lose money for every mile they drive. On an hourly basis, the median profit is $3.37 per hour and 74% of drivers earn less than the minimum wage in the state where they operate.”
The full text of the study, entitled “The Economics of Ride-Hailing: Driver Revenue, Expenses and Taxes”, is available to CEEPRassociates/sponsors and will accessible by the public in a few months’ time.
