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Wage Gap Study Reveals A Lot About Driving For Uber

Earlier this year, researchers at Stanford and working with Uber released an interesting study about driver earnings, driver retention, and the wage gap between male and female drivers. Today, senior RSG contributor Christian Perea breaks down the study for us and explains some of its conclusions. Let us know what you think about the survey’s conclusions in the comments below.

Researchers from Uber and Stanford recently released a study showing that women make 7% less per hour than men as drivers on the Uber platform. They also explained the reasons why there’s a difference.

But in addition to the gender wage gap, this study actually revealed A TON of data about driving for Uber between 2015 and 2017. This study revealed hourly pay for drivers, how many drivers there are, how driving experience affects hourly pay, and that about 70% of drivers stop driving within 6 months.

You see, getting to the conclusion of why women earned 7% less per hour than men required the economists to unpack a lot of other data about driving. I’ll outline some of the most interesting data points below.

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The Case Against Upfront Pricing

We’ve been covering “upfront pricing” by the rideshare companies for a while because the fact is: the way the companies takes their commissions from drivers’ pay can be confusing. Today, senior RSG contributor Christian Perea covers upfront pricing and how it harms drivers.

Also, post your worst cases of upfront pricing (instructions below) and we’ll have a competition to see who has been burned the most. I’ll cover the difference for whoever lost the most in an upfront pricing fare!

Upfront pricing is the most controversial aspect of how drivers earn money in 2018. Drivers regularly send Harry examples of rides where Uber takes more than 60% of the fare. The discrepancies on some of these rides are so large, it’s hard to tell if Uber is underpaying the driver or overcharging the passenger (or both). Drivers claim that upfront pricing lacks transparency and gives TNCs the power to manipulate pricing in the houses’ favor.

Who is upfront pricing good for? We evaluate how upfront pricing is working on and how it could be improved for drivers.

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Grading Uber’s New CEO, Dara Khosrowshahi, on His First 100 Days

It’s been a few months since the new Uber CEO, Dara Khsrowshahi took over from Travis Kalanick but has much changed? Today, senior RSG contributor John Ince shares his thoughts on how Uber’s new CEO is doing, for Uber and for drivers.

Recently I gave a ride to a person who works for Heidrick and Struggles, the headhunting firm that conducted the search for Uber’s new CEO, Dara Khosrowshahi.  I asked my passenger obvious question  – “Did DK realize what he was getting into?”

“Oh he knew.  He knew exactly what he was getting into,” the passenger replied.

Indeed, running Uber in these tough times is a Herculean task.  Given that it’s now been just over 120 days since DK assumed his new role, perhaps it’s now time to take stock of how he’s been doing.  Let’s take a look at the nature of his influence and break it down into categories to try to get a better feel for how Uber’s new CEO has been doing on the job.

How has the new CEO of Uber done in his last 100 days? Contributor John Ince grades DK on his accomplishments and things still yet to be accomplished for drivers.

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Uber Express and Lyft Shuttle Compete Directly With Public Transit

While not available in every city (yet or ever), Uber and Lyft have rolled out two new products designed very similarly to public transit. Called Uber Express POOL and Lyft Shuttle, the services offer passengers lower fares in exchange for asking passengers to congregate in one area for you, the driver, to pick them all up. They will then be dropped off at one location. Today, senior contributor John Ince explains how this works, public feedback, and what it could mean for drivers.

Recently, Uber rolled out a new product in San Francisco and a few other cities called Express POOL, which promises passengers dramatically lower fares in return for asking said passenger to walk a short distance to predetermined pickup and drop-off spots.

Lyft has its own version called Lyft Shuttle where passengers follow pre-determined routes and everything is a flat $3 fare.

Uber’s Express POOL’s variable fares are dramatically lower than UberPOOL, often by over 50%.  And both Lyft Shuttle and Express POOL allow up to 4 passengers. If this seems a lot like a bus pickup, it’s because that’s definitely the direction Uber and Lyft are heading.  So far, these services are being tested in places like San Francisco and Chicago but it could be just a matter of time before they roll out to other cities.

Uber and Lyft are rolling out Uber Express POOL and Lyft Shuttle, designed very similar to public transit. Is this a good move for Uber/Lyft and what does it mean for drivers?

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