A recent research report from Gridwise, an app designed to assist gig workers in tracking their earnings, reveals a concerning trend among Uber drivers. The report highlights a “marked decrease” in the monthly average gross earnings of Uber drivers over the past year.
In 2023, Uber drivers experienced a significant 17.1% decline in gross earnings compared to the previous year, as outlined in Gridwise’s findings. The report draws insights from the app’s extensive database, which includes anonymized gig mobility data from over 500,000 gig drivers, along with input from a survey involving 528 active gig drivers and 1,000 gig service consumers.
Interestingly, Lyft drivers witnessed a contrasting trend, with the report indicating a 2.5% increase in monthly average gross earnings over the same period. Both Uber and Lyft, however, registered a decrease in work hours in 2023 compared to 2022, according to Gridwise.
The report delves into the multifaceted aspects of gig work, emphasizing that tips play a crucial role in job satisfaction for gig workers. Almost 80% of gig drivers expressed the significance of tips in contributing to their overall income. However, the report notes that just over one-fourth of rideshare trips result in a tip. Data from Gridwise suggests that rideshare drivers derive only 10% of their income from tips, while over half of the income for food and grocery delivery drivers comes from customer tipping.
The transparency of how customer tips impact a driver’s earnings emerges as a critical concern. Gridwise’s report reveals that 75% of gig service consumers believe companies should offer more detailed information on how tips contribute to a driver’s earnings. Additionally, nearly 63% of consumers feel that a clearer understanding of this process would positively influence their tipping behavior.
These findings come against the backdrop of Uber and Lyft’s ongoing recovery from the lows experienced during the COVID-19 pandemic. Gridwise notes a substantial increase in trips for both platforms, with Uber seeing a 66% jump and Lyft experiencing a 52% rise from January 2022 to the end of 2023. Both Uber and Lyft are scheduled to release their fourth-quarter and full-year financial reports next month.