How Much Do Uber Drivers Make Per Hour

How Much Do Uber Drivers Make Per Hour

How Much Do Uber Drivers Make Per Hour – Taxis and drivers pick up fares at Union Station in Toronto on August 24, 2022. Christopher Katsarov/The Globe and Mail

Uber Technologies Inc. company’s UBER-N drivers in the Toronto area earn an average of $7.90 an hour, below Ontario’s minimum wage of $15.50, after expenses related to using their personal vehicles to work are exempt from wages. A report by the RideFairTO advocacy group.

How Much Do Uber Drivers Make Per Hour

How Much Do Uber Drivers Make Per Hour

The report estimates that these costs — which include fees for things like fuel, car insurance and maintenance — are at least $12 an hour for the typical driver. Not including all expenses, the average salary for an Uber driver in Toronto is around $20 an hour. Image does not count towards tips.

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The wages and working conditions of Canadian workers, including Uber drivers, have become a hotly contested issue. This is especially true in the country’s largest cities, which depend more on this working class for ride-hailing and delivery services.

About 250,000 people across the country work as delivery couriers and passenger drivers, according to the latest Statistics Canada data. But they are not considered employees under labor laws, and as a result are not entitled to the benefits that come with being an employee, such as minimum wage, sick days and unemployment insurance.

The report, compiled for RideFairTO by online independent researcher Tom Slee Waterloo, relied on data from the City of Toronto, the Canada Revenue Agency and Uber itself.

“I had to break it down from multiple sources because it’s very difficult to know how much Uber pays its drivers by jurisdiction,” Mr Slee said. The tech giant rarely releases this type of information, making the report one of the most comprehensive analyzes of Uber driver salaries in Canada.

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In a statement to The Globe and Mail, Uber said the numbers in the report “do not match” what its drivers saw. In December, drivers in the Toronto area were paid an average of $33.98 an hour for “service time,” meaning driving or dropping off passengers, the company said. That number does not include tips, the company said.

RideFairTO’s $20-an-hour figure includes both billable work time for Uber drivers and unpaid time spent waiting between rides and deliveries. Mr. Slee estimated, based on City of Toronto data, that only about 48 percent of a driver’s working time is engaged in work.

Uber regularly releases certain payment information. In its financial statements, it discloses its global “take rate,” which is the percentage of each price the company keeps for itself. But it doesn’t break the citywide rate.

How Much Do Uber Drivers Make Per Hour

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In the third quarter of 2022, Uber’s rate was 27.9 percent, an increase of five percent over the previous year. But various other factors determined by the algorithm affect what a driver ultimately pays, including the number of Uber drivers on the road, the number of customers requesting a ride, and the “upgrade” or “increase” rates paid. by customers in the event of bad weather or unusual road conditions.

“It’s becoming increasingly clear that Uber is compensating drivers, even drivers,” Mr Slee said.

Labor advocates were outraged that digital platform workers were not paid for waiting times between deliveries or pickups. They argue that these workers should be designated as employees, which would require app developers to pay minimum wage.

“It was only when hundreds or thousands of drivers lined up for free on the platforms that Uber and Lyft were able to deliver on their promise to customers with short wait times at low costs,” said J.J. Fueser is the founder of MetStrat, a consulting firm that works closely with RideFairTO.

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Uber has said that setting a minimum wage for hours spent driving, including waiting time, would make it more difficult for workers to access multiple work apps like Lyft and DoorDash at the same time. The flexibility to work at different times and on different platforms is the main reason people sign up as Uber drivers and delivery couriers, the company said.

In April, the Ontario government passed legislation that would force companies to pay drivers and couriers the minimum wage, but only for the hours they work.

An internal presentation by the province’s Ministry of Labor to Uber representatives and labor advocates last December, obtained by The Globe and Mail, indicated that Ontario is considering forcing tech platforms to pay workers above the $15.50 minimum wage. take into account the waiting time.

How Much Do Uber Drivers Make Per Hour

Uber itself requests a work standard of 120 percent of the minimum wage for its drivers and delivery couriers, but only for part-time work.

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Mr. Sly and other labor advocates say that minimum wages for overtime, or minimum wage standards for overtime, do not change workers’ incomes because they make the minimum wage minus expenses.

Study and track financial data on any trading entity: click to open full quote page. Information updated on 21/03/24 at 16:00 according to new investigation data.

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Rani Mollah is a senior correspondent, and she focuses her report on the future of work. He has covered business and technology for more than a decade — often in the charts — including for Bloomberg and the Wall Street Journal.

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Uber lures drivers with the idea of ​​being your own boss and “making big money with your car.” The “big money” part is up for debate.

The average hourly pay for Uber drivers in the U.S. is $14.73, according to a new study by Ridester, a publication focused on the ride-hailing industry. This number includes tips but does not include operating costs such as insurance, gas and car depreciation. Using Ridester’s low-cost hourly rate of $5 an hour, drivers will bring in $9.73 an hour and much less.

That means a driver working 40 hours a week would make an annual salary of $31,000,000, before car expenses, and about $20,000 after expenses (but still before taxes). This is below the poverty line for three families. It also claims to be making $70,000 to $90,000 for remote Uber drivers in major markets.

How Much Do Uber Drivers Make Per Hour

That’s important because online “big economy” jobs, including driving for Uber, are a growing part of the U.S. workforce: About 5 percent of the working population worked in the economy last year, up from 2 percent in 2013. Therefore, their services are linked to overall development. Additionally, these workers are still considered contractors, meaning they are not eligible for employer health or other employee benefits.

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Tech companies are also scrutinizing how they pay their workers. Today, Amazon raised its minimum wage to $15, including Sen. Bernie Sanders.

A study conducted this summer asked drivers to take a screenshot of the Uber app’s earnings page from their last full day of driving. The 719 real screenshots they used show how many hours drivers worked and how much they were paid after Uber took the cut. It does not factor in other costs such as taxes or health care. It’s important to note that the survey only represents drivers who were encouraged to submit their data and is not representative of the geographic distribution of Uber drivers.

Those numbers differ from Uber’s survey three years ago, which also includes drivers who work for more expensive services like UberBlack. This report evaluated 20 markets

$19.35 per hour before expenses – $5 more per hour than Ridester’s nationwide survey

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And covers UberX drivers only. In 2015, Uber estimated that the average hourly costs of drivers “driving a personal small sedan on the platform” was more than $6 per hour for a driver, “and more than $6 per hour for someone using a 4WD vehicle full-time on the platform.”

Another study by the Economic Policy Institute, which used Uber administrative data, found that Uber drivers earned an average of $16.44 an hour before driving expenses, which is $4.78 an hour after drivers pay taxes.

According to the U.S. Bureau of Labor Statistics, the median hourly wage for all taxi and cab drivers in 2017 was $11.96.

How Much Do Uber Drivers Make Per Hour

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