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Uber says half its drivers make $90K a year — yeah, right.
While we’re technically pro- anything that can convince people to ditch their cars, we can’t ignore that Uber has come under fire for underpaying its workers, undercutting taxi regulations, and just generally being a pushy dudebro tech company.
Recent fare cuts have driven drivers to the streets to ask for better treatment, even as the company burns rubber in the profits department: In just four years, the upstarty start-up has gone from 0 to $17 billion, and it’s still growing to the tune of 50,000 new jobs a month.
But when the company claims that UberX drivers in New York City make a median income of $90,776 per year — meaning the average Joe with a Prius and some free time could theoretically catapult to the top third of the city’s earners — something smells a little off. Some have already pointed out that this number is gross income, before all the expenses that drivers are expected to cover kick in — like, you know, gas.
Luckily — for us, because this sounds like a lot of work — Slate’s Alison Griswold took a hard look at the math, then talked to some actual UberX drivers, and now she is calling shenanigans:
[UberX driver Jesus] Garay says that on average, a ride takes him 20 minutes from start to finish: five minutes to reach the pickup location, five to wait for the customer, and 10 to drive to the destination. For a trip of that length, Garay says he’ll make $10 or $11. “So if you’re busy, you’re going to make three rides in an hour,” he explains. “That’s $30 an hour. That’s before commission, taxes, the Black Car Fund, before you take off your gas …”
For a driver like Garay, all those deductions mean an initial $30 in fares leaves him with about $21 for the hour. According to statements Garay provided Slate, he made $1,163.30 in fares for 40 hours of work in the week ending Oct. 13. From that, he took home just under $850. In any given week, Garay expects to lose a bit more than $350 to gas, car cleanings, insurance, maintenance, and parking costs. That leaves him with about $480 before income taxes. Effectively, he’s making $12 an hour.
That’s still not terrible, but it sure isn’t $90k. And there’s more. When Griswold just flat-out asks an Uber rep to show her ONE driver in NYC who is making the alleged median income, she got nothing. Here’s a quick math refresher — “median” means half of the drivers in NYC should be making MORE than that. So why is it so hard to dig up just one?
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