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Uber drivers average $11.77 per hour, report also looks at size of on-demand economy

May 18, 2018

Uber drivers make an average of $11.77 per hour after deducting Uber fees and vehicle expenses, according to a report this week by the Economic Policy Institute that looked at Uber and the online platform, gig economy space as a whole.

That compares to the $32.06 average hourly compensation of private-sector workers and less than the $14.99 average hourly compensation in the lowest-paid major occupation (service occupation workers).

“Discretionary compensation” after deducting Uber fees, vehicle expenses and mandatory Social Security/Medicare taxes that independent contractors must pay average $10.87 an hour, according to the report. If a driver adds a modest benefits package, that would bring the wage to $9.21 per hour.

The report also found that gig economy workers who work through online platforms represent just 0.1% of national full-time equivalent employment in the US and 0.034% of total national compensation.

It noted Uber drivers earn low wages and gig economy compensation represents a small part of the overall economy, reinforcing some skepticism over the potential role of the gig economy in the future of work.

However, “the low pay and small economic weight of Uber and the gig economy overall, coupled with the fact that Uber drivers and other gig workers are mostly working on a part-time basis as a way to earn supplementary income, argue for a change in perspective,” said Lawrence Mishel, EPI distinguished fellow and author of the report. “There is a lot of hype around Uber and the gig economy. But in any conference on the future of work, Uber and the gig economy deserve at most a workshop, not a plenary.”