March 2 (UPI) — Drivers for ride-hailing companies Uber and Lyft get a median profit of $3.37 per hour — before taxes — a research study showed Friday.
The Massachusetts Institute of Technology study analyzed fiscal data from about 1,100 independent contractor drivers and was performed by the MIT Center for Energy and Environmental Policy Research.
According to the report, just under 75 percent of drivers earned less than the prevailing minimum wage in their state — and about 30 percent said they actually lose money when vehicle expenses are factored in.
The study found the drivers’ median income was 59 cents per mile. When operating expenses –insurance, vehicle maintenance, depreciation, repairs and fuel — are included, that figure is reduced to 29 cents per mile.
With the Internal Revenue Services’ standard deduction of 54 cents per mile, drivers for Uber and Lyft can declare a loss on their tax returns. The tax deduction is higher than the actual cost-per-mile, facilitating an estimated $4.8 billion in untaxed income, the study said.
“These numbers suggest that approximately 74 percent of driver profit is untaxed,” the study, by Stephen M. Zoepf, Stella Chen, Paa Adu and Gonzalo Pozo, said.
