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Read previewChristina, an Uber and Lyft driver in Las Vegas, said about half of her passengers tip on a good day. Some riders have told her they don't know how to tip, forcing her to show them on the app. Ride-hailing drivers told Business Insider that customer tips are hard to come by. Related storiesSome drivers like Jillian, 67, who drives in Santa Clarita, California, have a simple solution for getting more tips — asking riders directly. The inconsistency is working against some driversAlex Santiago, a 48-year-old Uber driver in northern Virginia, used to dress business casual and catered music to passengers.
Persons: , Christina, she's, I've, Christina isn't, Uber, Nick Leighton, Lyft, Stuart, Marilyn Cassady, Cassady, there's, Jillian, it's, Alex Santiago, Santiago, Jason S, he's, hasn't, Jason, Andre Kingston, she'd, Kingston Organizations: Service, Business, Wolves, BI, Gridwise Locations: Las Vegas, United States, Austin, Myrtle Beach , South Carolina, Santa Clarita , California, Virginia, Detroit, Phoenix
Ron, a 76-year-old based in California, always leaves his ride-hailing driver a 20% tip unless they are a "complete jerk," he told BI. AdvertisementShould Uber and Lyft drivers always get tips? Rob Schlegel, a journalist turned real-estate agent in Las Vegas, tries to always tip his Uber or Lyft driver the highest suggested amount for each ride. The reasons people do or don't tip their Uber and Lyft drivers can be complicated. According to Gridwise data, roughly 30% of US Uber drivers drove at least 25 hours a week in the first quarter of 2024.
Persons: , Valerie, haven't, Rob Schlegel, he's, Uber, Kellie Smith, Smith, it's, Carla Bevins, Bevins, DoorDash, Lillian, Lyft, Caroline, she's, Dee Dee, Carrie, It's, Bryan Organizations: Service, Business, Carnegie Mellon University, Uber, BI, Gridwise Locations: California, Las Vegas, Washington, US, Hampton Roads , Virginia
One screenshot from a Lyft driver based in Arizona showed a $2.62 ride that took 15 minutes and traveled 4.32 miles. For some drivers, these sub-$3 trips are a symbol of their broader frustrations with their pay. AdvertisementCompared to January 2023, sub-$3 trips — excluding tips — have become more common for DoorDash, Grubhub, and Uber Eats drivers and less common for Uber and Lyft drivers, per Gridwise. Otherwise, the pay would likely increase if drivers rejected these rides since drivers would be more likely to accept a higher-paying ride. AdvertisementMoises Diaz, a 41-year-old Uber and Lyft driver in California, started driving part-time in December.
Persons: , Sergio Avedian, Guy, Avedian, it's, Lyft, they're, Uber, Grubhub, Gridwise, Randy Scott, he's, Scott, There's, he'll, Moises Diaz Organizations: Service, Business, Research, Gridwise, South, BI, Uber Locations: Arizona, Cleveland , Houston, Fort Lauderdale, Orange County, Los Angeles, Florida, California, South Florida
Advertisement"Pay for gig drivers rarely exceeds the employee-equivalent local minimum wage," the authors wrote. While two-thirds of DoorDash drivers and just under half of Uber Eats drivers had their incomes adjusted, just 5% of Uber drivers did. The average Lyft, Uber Eats, and DoorDash driver had hourly earnings of $24, $18, and $14, respectively. Over the past year, several gig drivers have told BI that their gigs are less profitable than they used to be. For example, Uber and Lyft drivers have said the ride-hailing giants are taking a larger cut of rider fares.
Persons: , Lyft, Uber, aren't, Gridwise Organizations: Service, Seattle metros, UC Berkeley Labor Center, Center for Wage, Dynamics, Business, metros —, UC Berkeley, Big Lake Data, Bank of America, Bank of America Institute Locations: Boston, Chicago, Los Angeles, San Francisco Bay, California, San Francisco, Seattle, New York City, Minnesota, Twin Cities, Massachusetts
A Cleveland Uber driver made over $109,000 in gross earnings last year but took home only $17,000. He said Uber driving had become less profitable but that he wasn't sure he could find a better job. AdvertisementGeorge, a full-time Uber driver in Cleveland, wants to quit his ride-hailing gig. Last year, George made more than $109,000 in gross earnings as an Uber driver, according to documents viewed by BI. But after Uber's commissions, car maintenance, gas, and miscellaneous driving expenses were accounted for, he took home roughly $17,000, about 16% of his gross earnings.
Persons: Uber, , George, he'd, isn't, that's, There's, He's Organizations: Service, Uber, BI, of Labor Statistics, BLS Locations: Cleveland, Minneapolis, Minnesota, Twin Cities
A Cleveland Uber driver made over $109,000 in gross earnings last year but only took home $17,000. He said Uber driving has become less profitable but that he's not sure he can find a better job. AdvertisementGeorge, a full-time Uber driver in Cleveland, wants to quit his ride-hailing gig. In 2023, George made more than $109,000 in gross earnings as an Uber driver, according to documents viewed by BI. Many ride-hailing drivers, like George, are actively tracking their income and expenses to make sure driving is worth their time.
Persons: Uber, he's, , George, haven't, isn't, he'd, that's, There's, He's Organizations: Service, Uber, BI, of Labor Statistics, BLS Locations: Cleveland, Minneapolis, Minnesota, Twin Cities
A Wisconsin Uber driver said working inconvenient hours gives him the best chance to make money. AdvertisementFor Ken Morris, an Uber driver based in Green Bay, Wisconsin, embracing unideal working hours is the best way to make money as a ride-hailing driver . “If you don’t want to drive, that’s probably when you should be driving,” Morris, 49, told Business Insider via email. In 2022, he took home roughly $14,000 as an Uber ride-hailing driver — about $1.1 per online mile driven — according to a document viewed by BI. These income figures include tips and bonuses and don’t account for driving expenses like gas, maintenance, and depreciation.
Persons: Uber, , Ken Morris, ” Morris, Morris, he’s, it’s, I’ve, haven’t, Lyft, Tipping, , Morris wasn't, he’d, Gridwise, it's Organizations: Service, Uber, BI, Locations: Wisconsin, Green Bay , Wisconsin
Over the past year, Uber drivers have told Business Insider that it’s gotten harder to make money . Gridwise told BI these earnings reflected the amount drivers took home after Uber took its cut of drivers' gross earnings. The average Uber driver’s earnings before expenses declined from $29 an hour in 2022 to $25 in 2023. Meanwhile, the average Uber Eats driver’s earnings fell from roughly $20 to $18 an hour before expenses — the average driver worked 27 hours a month. While Uber drivers saw the largest year-over-year decline in monthly pay, the average driver’s $25 an-hour earnings before expenses were still higher than any other gig.
Persons: Gridwise, Uber, it’s, haven’t, Lyft Organizations: Business, Bureau of Labor Statistics
While nearly 90% of food delivery trips get tips, less than a third of Uber and Lyft trips get tips. That’s according to a new study of over 500,000 US gig drivers from Gridwise , a data analytics company and app that helps drivers track their earnings. The study found that nearly 90% of food delivery trips get a customer tip, compared to 75% of grocery delivery trips and 28% of Uber and Lyft ride-hailing trips. AdvertisementOne explanation for why Americans are more likely to tip food delivery drivers over ride-hailing drivers is that many tip them when their order is placed. In comparison, customers generally tip their Uber and Lyft drivers during or after a ride is completed.
Persons: , Gridwise, Uber, Lyft Organizations: Uber, Service, Business, Gridwise, Stanford, University of Chicago, Pew Research
Drivers are feeling squeezedSome Uber drivers are feeling squeezed on pay. That doesn't mean drivers aren't feeling angry about a drop in pay that they say they've experienced, with data backing them up. Gridwise Analytics, a data firm analyzing the gig economy , found average monthly gross earnings for Uber drivers fell 17% last year. A more contentious issue among drivers has focused on whether or not Uber is taking a bigger slice of their fares. Yet it seems that not all drivers are satisfied — and Uber will be hoping that number doesn't keep rising.
Persons: , Dara Khosrowshahi, he’d, Uber, ” Khosrowshahi, , it's, ru4gU8nRa7, OEx6OEkovB Organizations: Service, Business, App Workers, “ Workers, East, Drivers, East Coast Locations: Chicago, Philadelphia, Pittsburgh
NEW LOOK Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. In today’s big story, we’re looking at Google’s new internal AI model aimed at improving worker efficiency. The big storyAI assistanceCBS Photo Archive/Getty ImagesGoogle employees are getting an AI-powered wingman in the company’s bid to improve efficiency. Goose can answer questions about Google's tech and write and edit code, according to an internal summary of the model. Tech companies have tested inventions on their own employees for years in a process known as "dogfooding," writes BI's Alistair Barr.
Persons: , Denny's, customizations, Hugh Langley, Tom Cruise’s copilot, Alistair Barr, Tyler Lee, , Bryan R, Smith, Wall, Gary Gensler, We’re, Société, Elad Gil, Gil, ChatGPT, it’s, Uber, Nomura, Young homebuyers, Meredith Whitney, Donald Trump, Dan DeFrancesco, Hallam Bullock, Jordan Parker Erb, George Glover Organizations: Business, Service, CBS, Getty, Microsoft, OpenAI, Tech, Google, Big Tech, Fed, UBS, SEC, Silicon Valley’s, BI, Xbox, Dragon, Workers, Wall Locations: China, New York, London
Some Uber and Lyft drivers say it's become harder to make money over the past year. AdvertisementMany Uber and Lyft drivers say ride-hailing has become less profitable than it used to be, and some are blaming that on the gig's popularity. Fred is one of several drivers who told Business Insider that an increase in drivers has contributed to fewer available — and lower-paying — trips. This came after the number of global Uber drivers increased 31% in 2022 to a record five million. One San Francisco-based Lyft driver told BI that Waymo's self-driving taxis in the city have added another layer of competition.
Persons: , Fred, Uber, Lyft, it's, Rich, I'd Organizations: Service, Business, Arizona Uber Locations: Virginia, San Francisco, Arizona
Aaron Lavender, 36, gave up teaching last year to work as a full-time Uber and Lyft driver. But he said ride-hailing is more profitable and sustainable as a part-time gig. He'd been driving part time for Uber and Lyft since 2021, but last summer, he decided to go full time — driving at least 40 hours a week. AdvertisementAdvertisementBut whether these gigs can be sustainable full-time jobs — or whether they're better kept as side hustles — is up for debate. A 2022 survey of 810 California Uber and Lyft drivers conducted by a ride-hailing advocacy group found that two-thirds of them had been deactivated at least once.
Persons: Aaron Lavender, Uber, Lavender, he's, Aaron Lavender Aaron Lavender, stokes, it's Organizations: Service, Uber, California Uber, didn't, Tesla Locations: Wall, Silicon, Colorado, California
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