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A study conducted by the MIT Center for Energy and Environmental Policy Research analysed revenue and costs for over 1100 Lyft and Uber drivers, with the conclusion that most earn below minimum wage for their state and about 30% actually lose money when all the costs of owning and operating their vehicles are taken into account.
"A Median driver generates $0.59 per mile of driving, and incurs costs of $0.30 per mile", "On an hourly basis, the median profit was $3.37 per hour".
Because actual vehicle operating costs are significantly lower than the IRS allowance of $0.54/mile, many drivers report incomes that are substantially lower that their actual incomes, leading to a large pool of untaxed income (although it is small for each driver).
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MIT Study Shows How Much Driving for Uber or Lyft Sucks
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Everyone hates me because I'm paranoid.
(Score: 2) by tekk on Sunday March 04 2018, @02:16AM
A big thing is that the costs are largely invisible. If I'm driving for Lyft, the only immediate cost I see is the gas money, but what actually bites you is the increased wear on your car. Driving for them would be far more profitable if you had a throwaway car, used some beat up old thing on its last legs to squeeze a few extra dollars out of it and then when it dies you're done.