What is the frequency of tips given by customers of Lyft and Uber to their drivers? It may be lower than anticipated.
Americans are used to giving a tip when ordering food for delivery, but the same is not always true for those who work as transportation drivers.
A new report from Gridwise Analytics, the company behind a popular app used by 500,000 active rideshare and delivery drivers, reveals that only about 28% of rideshare trips end with a tip.
For about ten years, Uber did not allow users to give tips. Ryan Green, CEO of Gridwise, explained to CBS MoneyWatch that customers have become accustomed to not tipping for this type of service. He also noted that they observed instances of high fares, such as over $1,000, with no tip included despite six hours of driving.
Lyft, Uber, and DoorDash drivers are participating in a strike on Valentine’s Day at 2:16.
According to Gridwise, the increase in inflation has made tipping more crucial for Lyft and Uber drivers. In 2023, the monthly gross earnings for Uber drivers decreased by 17% compared to the previous year.
Green, speaking about Valentine’s Day, explained that their profits have been intentionally reduced due to the inflated prices of goods and cost of living.
Demonstrations held by motorists in certain cities across the United States.
Labor organizations that represent gig economy drivers are speaking out against decreases in their payment. They argue that the companies are claiming a larger portion of the fares.
According to CBS MoneyWatch, Carlos Pelayo, a 69-year-old substitute high school teacher in San Diego who also works as a driver for Uber and Lyft, stated that they will need to sacrifice some of the portion they are currently claiming.
What is the average income for rideshare drivers?
100% of tips
According to Green, on average, Lyft and Uber take around 40% of the fare revenue. Recently, Lyft promised that their drivers will receive all tips given by customers. must be collected
A minimum of 70% of ticket prices must be collected..
According to data from Gridwise, the average gross monthly earnings for an Uber driver decreased from $1,699.58 in 2022 to $1,409.71 in 2023. On average, Uber drivers worked 56 hours per month in 2023, slightly less than the 58 hours in 2022. For Lyft drivers, the typical monthly work hours in 2023 were 44, resulting in earnings of $1,058.32.
Based on information from Uber and Lyft, drivers make a median of $33 per hour while driving a passenger, which includes tips and bonuses. Lyft drivers who use their own cars earn $30.68 per hour of time spent driving, including tips and bonuses. After deducting expenses, their net earnings are $23.46 per hour.
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Uber Technologies announced this week that it plans to buy back $7 billion worth of shares after its first profitable year as a publicly traded company. This decision came after a successful earnings report and was followed by a similar move by Lyft.
Impressive performance this week..
Kate Gibson
Source: cbsnews.com