Uber and Lyft drivers net less than $7 an hour after California law passed, driver-led study finds

Proposition 22, which is in legal limbo after a court deemed it unconstitutional last year, among other things promised 120% of the state’s minimum wage to gig workers. But according to the report developed by the National Equity Atlas and Rideshare Drivers United, which the groups say is the first driver-led study using directly collected earnings data and working conditions to assess the impact of Prop. 22, the reality falls far short of that promise.

The report is based on data from nearly 12,500 rides by 55 drivers for Uber and Lyft, the two leading ride-hailing companies, over more than one month in 2021, though the earnings analysis is based on an even smaller sample of 21 drivers for whom the researchers had enough data. Drivers’ median gross pay, including bonuses and tips, was $26.30 an hour, according to the report.

The period covered by the driver-led report was Nov. 1 to Dec. 12, 2021, during a quarter in which Uber and Lyft posted increased revenue and said their businesses had recovered to coronavirus-pandemic highs. Also, ride-hailing charges per mile were up more than 35% year over year around that time, according to receipt data from YipitData.

But Chris Hoytt, a driver from Sacramento who has done ride-hailing in the Bay Area and elsewhere in California for the past eight years and used to be on Lyft’s driver advisory council, said that if Lyft drivers average at least 15 hours a week, they qualify for a partial stipend. The report also found that ride-hailing work has become “less flexible and more controlled” by the ride-hailing companies under Prop. 22. That’s partly because of changes the companies have made since Prop. 22, such as Uber changing the pay formula for surges, according to the report. Drivers interviewed for the report said that to try to earn as much as they did before, they had to work irregular or longer hours, accept more rides and depend more heavily on tips and bonuses.

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