Uber drivers labour for little reward

New Zealand Uber drivers say it’s common for them to earn less than the minimum wage.

An Australia Institute report this week argued Uber’s low fares were only possible because its drivers were underpaid.

It found Uberx drivers earned A$18 (NZ$19.39) on average in Sydney and Canberra but only A$11 an hour in Perth. Australia’s minimum wage is A$18.29 an hour.

Studies by MIT in the US found drivers there were earning between US$8.55 (NZ$11.74) and US$10 an hour.

Uber drivers are self-employed contractors. They pay 25 per cent of their takings to Uber, and have to cover tax, ACC, insurance, petrol costs and car maintenance.

Ben Wilson, of the NZ Uber Drivers’ Association, said it was hard to get a clear picture of drivers’ earnings in New Zealand.

Few people had been working for the platform long enough to get a clear idea of a full year – and fewer still had calculated their costs correctly.

For those who could supply data, earnings were about $10 to $12 an hour. New Zealand’s minimum wage is currently $15.75. There is no minimum for self-employed contractors.

Wilson, who has since stopped driving, said it was not easy work. ‘‘It’s not back-breaking but it is dangerous. One of the main ways people die [is in car crashes] and Uber drivers are doing 10 times as many hours on the road.’’

It was common for drivers to buy cars to work for Uber, but the platform had the power to cancel its agreements with drivers at its discretion.

Wilson said many people joined Uber thinking it was a good opportunity to make money without having to deal with a boss.

But when they started to look at it seriously, it became clear it was a lot of work for not a lot of money.

‘‘You’re working quite hard compared to someone on the minimum wage at Mcdonald’s and there are all these risks and costs.’’

Those who stuck it out were often elderly people who wanted social interaction, he said, or young people who had help with the cost of running their cars.

Migrants who were not meant to be working in New Zealand might also opt for Uber. ‘‘They’re not going to say they are being exploited.’’

An Uber spokeswoman said earnings varied depending on when driverpartners chose to use the app, and the vehicle they chose to drive.

The Taxi Federation said there was no information on what taxi drivers earned.

Many were shareholders of a company or franchise-holders and worked on a self-employed basis, too.

But executive director John Hart said some drivers would be employed on an hourly rate above the minimum wage, and then given a share of a shift’s takings.

‘‘No one is making a fortune but there is a reasonable living in it.’’