Report: Most Uber, Lyft drivers make below minimum wage

Surprise! Lyft and Uber drivers don't make much money.

Specifically, their median hourly wage is a whopping $3.37, according to a a paper published by MIT's Center for Energy and Environmental Policy Research, which compiled over 1,100 drivers' data from the United States Environmental Protection Agency and Kelly Blue Book, and estimates from Edmunds.

The study found that because of the high costs of insurance, fuel, and car maintenance, 74 percent of ride-share workers make below minimum wage in their respective states, and 30 percent actually lose money on their jobs. Drivers earn a median of 59 cents per mile driven, while incurring a median expense of 30 cents per mile. 40 percent of those costs were attributed to insurance, maintenance, and repairs, 40 percent to gas, and 20 percent to depreciation.

The researchers claim their paper is "one of the first detailed estimates of ride-hailing profit." This is because of, simply put, a collective-action problem.

"Ride-hailing operators know what they pay each driver, but do not know whether drivers earn additional wages from a competitor nor what drivers actually spend to operate their vehicles," the researchers wrote.

"An individual driver can precisely observe his or her own operational revenue and costs, but does not know whether these are representative of other drivers or other vehicles."

In short: "Results indicate that profit from ride-hail driving are very low," the researchers summarize.

It's worth noting that other surveys have concluded different wages for Uber drivers. There are multiple ways to calculate wages and expenses. These surveys also don't include Lyft.

Still, if you want to be an Uber driver to make the big bucks, maybe consider a different career path.

UPDATE: March 6, 2018, 9:40 a.m. EST MIT researcher Stephen Zoepf has released the following statement regarding his paper:

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Lyft's director of communications Adrian Durbin sent Mashable the following statement in response:

“When an academic study changes so dramatically in just a matter of days, that’s a real flag.  While the revised results are not as inaccurate as the original findings, driver earnings are still understated.  MIT’s study has fundamental methodology problems.

Drivers are integral to everything we do, and have been since Day 1. That is why we were first to implement in-app tipping, same-day payments, and access to affordable vehicles. We will continue to focus on drivers and implement product improvements to help them succeed and grow their earnings.”