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1/ In this here article, a Lyft exec weighs in re: the possibility of a pay floor for TNC drivers in Seattle, stating "that Lyft riders in the city earn an average of more than $20 per hour". This kind of figure is instructive in several different ways... bizjournals.com/seattle/news/2…
2/ For one thing, there's no way to check it. Gig companies don't share their data — and don't have crazy amounts of credibility — so for all we know they could just be making up #s. But let's assume that it's accurate. Still some questions...
3/ To start: does that $20 include tips or are they putting tips on top? And what time does the "per hour" cover — big difference between time with a fare, time with a trip (which includes time to pickup location + time with fare), and time online.
4/ Bet let's assume this is all in good faith. Let's assume Lyft means $20 for each hour on a trip, and that the $20 doesn't include tips. (Somebody should ask however @heidigroover @DBeekman @paxtynmerten @mnickelsburg )
5/ $20 per hour might sound ok at first. But there are some big expenses gig workers have as contractors that make that $20 not the same as it would be if you had a job that paid $20/hour in conventional employment....
6/ Top one is mileage expense — driving is expensive! The IRS estimates the cost is 58¢/mile including gas, repairs, depreciation, etc. If a Lyft driver drives about 15 miles per hour on trip, that's $8.70/hour in mileage expenses. Which is coming out of that $20/hour gross.
7/ So now per the Lyft exec, even assuming the best case (the # is real, it includes pickup time, and it doesn't include tips), we're now talking about $11.30/hour in pay. According to the company. And we're not done yet!
8/ Contractors also have to pay an additional 7.65% in payroll taxes that employers otherwise pay. Back that out and $11.30/hr is down to $10.44/hr. Remember — this is according to *Lyft*. As an average. In Seattle. Where the minimum wage for employees at big companies is $16/hr.
9/ And we haven't accounted for all the expenses either — just the two basics. And already, instead of $20/hour... we're at $10.44/hour. In the best case. According to Lyft. Not as a minimum, but as an *average*. As their defense!
10/ The company knows all this. They understand the expense of driving — that's why they shift it to drivers! And that's why they like to talk about gross dollars rather than pay after expenses. But nobody else should fall for it.
