Ride-hailing drivers in US earn less than minimum wage, says study

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A recent study has discovered that drivers from ride-hailing services Uber and Lyft are barely making any profit plying the streets of the United States.

According to the study conducted by the Massachusetts Institute of Technology Center of Energy and Environmental Policy Research (MIT CEEPR), around 74 percent of Uber and Lyft drivers in the U.S. are earning less than the minimum wage required in their respective states.

The study found from a survey of over 1,100 drivers that 30 percent are even losing money after vehicle and other expenses have been factored in.

Drivers generally have a median profit of $3.37 per hour (about P175) before taxes.

In its defense, Uber criticized the study and told The Guardian that the study’s methodology is “deeply flawed.” Lyft also found some “questionable assumptions” after initial reviews of the study. Issues on labor standards and on the rights of drivers as independent contractors have also been raised.

Meanwhile, Stephen Zoepf, co-author of the study and director of the Center for Automotive Research at Stanford University, said the business model used by the companies under scrutiny is “not currently sustainable.” Alfred Bayle/JB

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