Colorado gig drivers make an average of just $5.49 an hour, study finds
Drivers for platforms like Lyft, Uber and DoorDash in Denver, Colorado, on average make significantly less than minimum wage when accounting for expenses and time spent on the app, a new study found, the latest research to highlight the struggles of such workers across the US.
Research from workers’ rights group Colorado Jobs With Justice in partnership with drivers’ union Colorado Independent Drivers Unitedsurveyed hundreds of gig workers in the Denver area regarding their work between 1 November 2021 and 31 January 2022, and found drivers on average took home $5.49 (£4.75) an hour after expenses. That average is roughly 35% ofDenver’s 2022 minimum wage of $15.87, and falls significantly below the federal minimum wage of $7.25 an hour.
The study marks the latest attempt to quantify wages for gig workers, which can vary widely due to the range of ways to calculate costs, time and miles spent on the job. A 2018 study from the Economic Policy Institute showed Uber drivers make an average of $9.21 an hour, while another study that year found Uber and Lyft drivers made a median of $8.55 each hour before taxes.
Those numbers have been sinking as gas prices soar across the US and inflation rises. As of June, gas prices across the US had increased 50% over the course of the year. In Denver, where the study was conducted, the median cost of rent increased more than 45% in the past year to $2,550. Some workers in the study reported driving as many as 18 hours a day to make ends meet.
Although the Colorado Jobs With Justice study focused on drivers in
Denver, gig worker drivers across the US face similar issues, said Sofia Solano, organizing director with Colorado Jobs With Justice.
The findings come as legislation is being considered in various states of the US to better protect gig economy workers. The Biden administration has also proposed a rule that would more easily classify gig workers as employees, granting them access to benefits and federal labor protections.
“We hope this study can shed light on what it’s really like to be a gig worker,” Solano said. “As legislation is considered, no solution is going to be a good one for these workers unless they are collectively given a seat at the table.”
According to the study, drivers reported a median of 38 hours worked each week. The majority of drivers – 61% – said they relied on gig work as a primary means of income. Companies such as Lyft and Uber have long argued drivers are contract workers who prefer flexibility and don’t require full-time protections or benefits.
Spokespeople from Uber and DoorDash strongly disputed the findings of the study. Alix Anfang, a spokesperson for Uber, disputed the calculation of costs for drivers and said the company’s internal data found median earnings in Colorado were more than $37 an hour for time spent engaged on the platform. Anfang added that Uber’s own data showed 80% of drivers nationwide drive less than 20 hours a week.
A spokesperson from DoorDash also said the company’s own data showed drivers work less than full time and spend fewer than four hours each week on a delivery. DoorDash added that the company’s data showed Dashers
across all markets earn $25 an hour while on delivery.
A spokesperson from Lyft said the platform “continues to provide drivers with the ability to earn on their own terms” and that its own data showed drivers earned more than $35 an hour including tips.
Activist groups and researchers in the past have disputed earnings calculations for drivers coming from gig economy firms.Increasing costs like car maintenance, rent and gas are making it impossible to make ends meet, said Jennifer, a driver who participated in the study and asked to use a pseudonym for fear of retaliation.
She said she began driving with Lyft and Uber so she could have flexibility to take care of her family, including her mother who was ill. According to the Colorado Jobs With Justice
study, the majority of drivers reported that they supported someone else with their income, including 23% who said they support two or more children.
In addition to rising costs, Jennifer said she lost more than $1,000 in wages after her account was temporarily shut down when the company investigated her report of being assaulted by a passenger. During the investigation, she said, she had little knowledge of when her account would return. She ultimately was able to return to work after a week.
A spokesperson from Uber confirmed the platform restricts access to both drivers’ and passengers’ accounts when a “serious incident” is reported while agents internally investigate it as part of its safety policy.
Driver safety has long been a concern on the platforms. Over one-fifth of drivers in the study (21.7%) reported facing violence or threatened violence while on the job; a similar number (19.7%) reported being discriminated against on the basis of their identity. Companies like Uber have said driver safety is a top priority, and continue to invest in technology and policies that mitigate risk.
“These companies need to be better regulated,” Jennifer said. “They get away with so much, and it’s unfair to their workers who need these wages to survive.”
This story was corrected on 9 November 2022 to state the study was conducted in partnership with Colorado Independent Drivers United and not Gig Workers Rising as previously stated. The story was also corrected to state the $5.49 average is 35% of Denver’s minimum wage and not 35% below Denver’s minimum wage.