Thursday, January 5, 2017

It's Really Not Worth It

How Much Uber Drivers Actually Make Per Hour 

Uber data suggests that drivers overall in three major U.S. markets — Denver, Detroit, and Houston — earned less than $13.25 an hour after expenses in late 2015, according to calculations based on more than a million trips.

Perhaps more impactful than how Uber calculates actual earnings is how it advertises potential earnings. Uber uses a wide variety of channels — text message, radio, Craigslist, banner ads, TV ads, and even direct mail — to encourage people looking to earn money to drive for Uber.

But those potential earnings are advertised in “total fares,” with no mention of commission or expenses, which some drivers feel is misleading. For example, in Denver, Craigslist ads from the time when the data was pulled said drivers can earn up to $688 a week in fares; in Houston, ads from September said $660 in fares. (These estimates exclude Uber’s commission.)

None of these advertisements mention driver expenses. The same goes for the alerts Uber sends to drivers — sometimes five times a day or more — telling them that other drivers on the road were making $20 or $30 an hour in gross fares. Uber said this is because “there are significant differences in the cost of gas, new tires, an oil change or insurance depending on the city and the driver’s individual circumstances/choices.”

But many of the drivers and some of the former Uber employees interviewed for this article told BuzzFeed News the company could do a better job educating drivers about the difference between net and gross earnings.

“That’s not net. That’s just gross. And that’s if you get lucky. That’s the best, best, best-case scenario,” said Houston driver John Cerasuolo. “It might as well say partners are earning $1 million an hour.”

(BuzzFeed.com)

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