Uber is currently facing a new problem: discontented drivers who claim they do not gain USD90.000 per year, as the ridesharing service earlier declared. On the contrary, some are approaching the minimum wage, while others say they are barely managing to provide for their families.
According to the ridesharing service, the median salary for UberX drivers in New York is around USD90.000 per year. However, after speaking with more than a dozen Uber drivers, Business Insider concluded that none of the numbers provided by them were even close to USD90.000. On the contrary, a few drivers complained they were struggling to earn the minimum wage after the company cut the price of an UberX ride by 20 per cent across the United States. As a result, by working 40-hour weeks and making anywhere between USD5 per hour and USD20 per hour, Uber drivers could be earning between USD10.000 and USD41.000. According to the publication, although the ridesharing service declared the UberX discounts would not affect drivers because boosted demand would compensate for the lower fares, the discounts are hurting drivers’ earnings. Still, since the drivers are considered independent contractors, Uber is not obligated to pay them minimum wage.
In response to the drivers’ real earnings, the service’s New York City general manager John Mohrer declared he would speak on the record to journalists who accepted to take ten random Uber rides and collect pay stubs from the drivers. BuzzFeed reporter Johana Bhuiyan went on 11 rides to see how much Uber drivers are paid and obtained eight pay statements- two drivers were not comfortable showing the reporter their pay statements and the service did not offer the pay statements for the 11th driver. Ms Bhuiyan noticed that the work scheduled varied significantly for each driver, that most were part-time drivers and that the net wages do not take into consideration expenses such as car insurance, bridge tolls or other costs of being a driver like car rental if the driver does not own a car, gas, car maintenance and car payments.
Lately, the ridesharing service received an F from the Better Business Bureau, has been accused of using questionable tactics to recruit away drivers from rival Lyft and its business practices have come under critical scrutiny.