Gig Economy

Driver Rates Cut by Roughly 30%?

As of February 2016, many Uber and Lyft drivers are making approximately 30% less than they did 12 months ago. That’s about what is left over when you subtract the gas, your additional insurance cost, car depreciation, and car upkeep, which is about $3k-$4k per year. At those rates, there’s no way that you can make more than between $8-$20 dollars per hour at an average. If you work late nights and only during surges, you can make more per hour, but that brings your hours down to about 10-15 per week.

Here’s the thing: is that such a bad deal? How many jobs can you make 8-20 dollars an hour whenever you want, work as many hours as you want, and then not work for a whole month if that’s what you want? Definitely it’s low wages, it’s hard on your car, it’s hard on your body, in many ways it’s torture. But how many other jobs are there where you can say, on the spur of the moment, “I’m gonna work today, I’m gonna work 12 hours, I’m gonna make 200 dollars.” This is the dilemma of the gig economy. So I’m trying to drive smarter and not longer. Uber and Lyft are still great for drivers if you drive smart!

Categories: Gig Economy, Money, Top