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Gig workers worked more but earned less in 2024: study

TrackerFF

Some influencer here in Norway tried to work for a food-delivery service, called Wolt. His workday lasted 9.5 hrs, and he made 1607 NOK, and had 784 NOK in costs related to his car (fuel, toll), or 823 NOK before taxes. That's 86 NOK / hr., before taxes, or roughly $7.7 in USD (1 USD = 11.15). A full work-year here is 1950 hours, so if he consistently made that, it would put him around 167k NOK / year.

In comparison, median salary in Norway is is around 608k - so he made over 3.5x less than the median salary. It should be noted that salaries in Norway are very much centered around the mean, with not a whole lot of variance. The lowest paid workers, like cleaners, call center workers, etc. will make maybe 300k - 400k, while higher paid workers like engineers, lawyers, dentists, GPs, etc. will make 1.5x-3x the median or mean salary.

In any case, gig workers seem to earn a horrible salary

He'd live in poverty on a salary like that, and likely be better off by claiming welfare money.

chneu

I've had a ton of friends and coworkers do Lift/Uber/Dash and nobody I know actually makes a serious profit once they account for maintenance, consumables, fuel, healthcare, etc.

The companies know this. They "dynamically" change the payout rate so nobody can actually make real money.

This is in the US where these companies have been caught using "dynamic" pricing to screw everyone over.

edoceo

I love HN posts with lots of numbers like this. And we can do searches and see its not far off from quick queries. Is that data+driven? Any case,) rooting conversation (especially these days) in ~verifiable data is important for good discourse.

piyuv

Making videos about working at Wolt earns more money than actually working at Wolt

themaninthedark

It was always like that, however the marketing was great. Even here you had people arguing how it was better than a regular job since you can make your own hours. Only, your not going to be making money doing food delivery when people are sleeping. Most money for driving people around will be either at rush hour or a weekend evening.

So you're not making your own hours you are working hours set by "the market".

chii

You do make your own hours, because you have the choice to not work when there's work presented to you.

This is not possible in a full time position, nor is it possible in a casual setting (for example, there might be set schedules in a casual work position).

So gig work does give you the choice to make your own hours, because you're choosing to accept (or decline) when work is available, and there's (apparently) no penalty for declining.

Now, of course, there's better versions of "making your own hours" - like those consultant contracts that don't stipulate time, but output by deadline. You get to choose _when_ to work, as well as how much, as long as you deliver. But just because there's a better version of something, doesn't invalidate the slightly less better version of the same thing.

paulddraper

Yeah the math is really important.

Whether a magician at kids birthday parties, or food delivery, or hanging sheetrock you need to figure out how much you’re actually going to make.

micromacrofoot

that's what they're counting on: people don't do the math - if the advertised salary was accurate minus costs i'd be surprised if they could stay in business

SeanAnderson

I've been basically begging my friends that drive for Uber/Lyft in SF to figure out a game plan. I've completely switched over to Waymo at this point because it's just a superior experience in numerous ways. I have to imagine the human drivers will be fighting over scraps in a few more years.

I truly do empathize with the situation, and I understand this report applies to more than just Uber/Lyft drivers in one specific city, but, at the same time, I find it frustrating to see a glaring paradigm shift being met with apathy - as if the value they provide through their work won't drop markedly in the face of automation.

HPsquared

Driving is just a gig, it's not like they are super invested in it and did years of study in a particular style of driving and couldn't do any other job. The apathy is because it's easy come, easy go.

immibis

Gigs are papering over a gaping sinkhole in the economy.

0xDEAFBEAD

That's actually a really good point. Economists should track statistics from these gig apps as an alternative measure of unskilled unemployment. If gig app wages are low, that suggests unemployment is high in a way that's not being picked up by official stats.

sangnoir

Gigs are part of the sinkhole; funneling money from those struggling to get by to the app-makers and their investors. At best, gigs are the pretty-but-slippery wallpaper lining the sinkhole many have fallen into, and can't climb out of because the apps unilaterally decide how small the gig-workers' share of the revenue is.

mouse_

"gig" is newspeak for unregulated labor.

johnnyanmac

Not too surprising. That California Prop 22 from 2020 and similar props throughout the country is finally paying off. A waning economy and rising costs also make the gig workers suffer the most.

>In response to the report, an Uber spokesperson told BI that its drivers make more than $30 an hour on average.

Gotta love the ol' "well the average is decent" line in times of unprecedented standard deviations. Though there may be even more creative accounting for their average compared to:

>Uber hide-hailing drivers saw their earnings for 2024 fall 3.4% on average to $513 a week, according to a study released Tuesday by data analytics company Gridwise. At the same time, Uber drivers worked 0.8% more hours in 2024.

roughly $13/hr.

artificialprint

I eat bread, Uber CEO eats marble steak. On average we eat a burger

ipaddr

There is one Uber CEO and many people eating bread. On average you eat bread;

aqueueaqueue

The analogy breaks because the mean is skewable by high incomes and the median is well ... a number such that if you add $1 most people earn less than that.

Bottom 10-percentile would be a good measure maybe for something to lift if you are left leaning or right leaning and see the economy holistically.

mitthrowaway2

When wealth follows a power law distribution, that's very questionable.

https://en.m.wikipedia.org/wiki/Power_law#Lack_of_well-defin...

mrighele

OP should have written

We (1000 people) eat bread, Uber CEO eats 1000 marble steaks. On average we eat a burger each

Terr_

You're forgetting that CEO's steak is the size of a skyscraper.

DSMan195276

If you have 1000 people making $1 along with one person making $1000, the average is about $2 - so 99.9% of people are making less than the average.

null

[deleted]

wlesieutre

I'd like to know how much they make after factoring in gas, insurance, and wear/tear on the vehicle

chneu

It's very little. Most people I know make around $10/hr after costs if they stay really busy. Most rely on a couple of big tips a day.

That's below minimum wage where I'm at. And remember there's no healthcare, benefits, etc. So that $10/hr is divided further.

titanomachy

> waning economy and rising costs

The US economy appears to growing at about the same (inflation-adjusted) rate that it has since the 80s. [0]

But it certainly does seem that the consumer price index is failing to capture the reality of rising costs. For example the big mac index significantly outpaced the CPI the last few years.[1] And obviously housing and education costs have outpaced inflation. I guess it's politically expedient to under-report inflation... I wonder what the "real" GDP growth would be if we had a measure of cost that actually reflected the reality of people's lives.

Of course, that's not even mentioning increasing inequality.

[0] https://fred.stlouisfed.org/series/GDPC1/

[1] https://www.stlouisfed.org/on-the-economy/2024/apr/how-big-m...

chgs

The components of cpi are all individually reported, as is the weighting. You’re free to present your own weightings, or perhaps analyse people’s spendings as a service and categorise it to present a personal inflation index.

ErikAugust

Yeah, surprise surprise, $13/hour is getting close to the average minimum wage ($11.18/hour). Except without any benefits, and all the expenses that would normally be covered by your employer.

kasey_junk

I do not want to defend the gig apps but there is a major benefit, you can make your own schedule and (mostly) work in the geography that you want. That flexibility is extremely valuable to some people.

ErikAugust

Sure, make arguably less than minimum wage but do it whenever you want.

milesrout

How do you figure $13/hr? Most of the Uber drivers I have had work less than full time, and often weird hours: 3am to 1pm three days a week for example.

johnnyanmac

Yeah, thars probably where the "interpretation" from the Uber CEO comes in. If you measure it with 20 hour work weeks, it could indeed come down to $30/hr. I feel most people will compare it to their full time jobs when hearing the statistics, however.

celeritascelery

I recently was traveling a lot and would take a uber multiple times a day. I asked all my drivers what they thought of the gig. To my surprise, most were pretty happy about it. The ones that were happy really liked the flexibility and autonomy. They could start and stop when they wanted, work where they wanted, take vacation when they wanted, etc. the ones that were unhappy complained about the pay and lack of benefits.

It really drove home for me that a job is more than just wages. If your goal is to maximize your income, gig work is probably not for you. But the nice thing is, no one is making you do it. If you don’t like the pay, go do something else. But it seems like gig work fills a niche that works really well for some people.

Tade0

My most surprising encounter was an actual taxi. I asked the driver how does that work and he said that Uber fills the gaps in moments when he isn't getting any calls, as hardly anyone takes a taxi to travel short distances in the middle of the day.

Indeed, I called an Uber because I was in the middle of house hunting and a taxi would be considerably more expensive.

rel2thr

Illegal immigration has really hit gig work wages. So many people without valid work visas are sharing/renting uber and other accounts to do work. At least in Texas, I would guess 30-40% of gig workers are not legally allowed to be doing it.

chaps

Do you have any source that would agree with your 30-40%?

xethos

Hardly brand new, but at least done by an actual publication. Uber will never want to publish stats for this kind of thing, so I suspect this is the best we'll get for awhile

https://www.wired.com/story/priscila-queen-of-the-rideshare-...

alephnerd

Anecdotally, around 40-55% of my DoorDash (YC S13) delivery drivers can only speak Spanish (I set my deliveries to require a PIN so I meet them), and the style of Spanish they speak is a Central American register (I think Honduran, El Salvadoran, and Guatemalan) based on accent and word choice.

I'm not sure if they are "officially" illegal, but they are most likely waiting on an Asylum or Immigration hearing.

This is in SF.

I can also provide FB groups that sell DoorDash (YC S13) and Uber Eats delivery driver accounts to those who lack documentation if needed.

chaps

    I'm not sure if they are "officially" illegal, but they are most likely waiting on an Asylum or Immigration hearing.
Seems like you've jumped from "they only speak spanish" to, "there's a very high chance that they're here illegally".

knodi123

I'm someone else, but I can vouch that most of my doordash driver names are female, and most of my delivery people are male.

rel2thr

nobody could possibly have that data

alephnerd

I've been documenting this data on my own with screenshots after seeing a degradation in DoorDash (YC S13) deliveries around 2022, and getting annoyed at having to escalate to customer service or peers at mid-level roles internally.

It's not at all scientific, but it's helped me get my escalations resolved fairly quickly after bringing up some of the data collection and potential liability issues (that cannot be resolved by arbitration ;) ) to their Safety teams.

I don't blame the drivers though. Fundamentally, it's product and operation leadership in Mission Bay (Uber) and Rincon Hill (DoorDash - YC S13) that is causing this - and I'm sure a lot of those guys are on HN as well.

Nothing will happen though, plenty of our peers are tight with this Admin. A16Z, YC, and a number of other funds became close to the Trump admin after the Biden admin poked the bear by proposing changes to unrealized capital gains tax brackets [0][1] along with the OECD Global Tax Deal [2]

[0] - https://www.axios.com/2024/07/17/trump-andreessen-horowitz-t...

[1] - https://www.axios.com/2024/08/23/kamala-harris-unrealized-ca...

[2] - https://rsmus.com/insights/services/business-tax/us-rejects-...

knodi123

I would guess based on personal visual observation that at least 50% of doordash drivers are not the person listed on the account. Although over maybe 100 orders, I've only had 2 real problems.

fHr

and this corpos don't give one fuck as usual

esalman

Cannot help but feel gig working is what stopping minimum wage from rising.

smt88

The only thing stopping minimum wage from rising is the Republican Party. The minimum already isn't market-driven, and it isn't pegged to inflation, either.

Adjusting for inflation, it's not surprising to see the lowest earners making less money.

taude

Not that you were arguing against the point I'm going to make, but ddjusting for inflation, even those in good white-collar jobs are making way less money, and then add the cost of housing (or trying to buy a house) into the mix, and it's downright depressing.

I was just looking at a place that was $240K in 2007, and it now costs 1.05M. My wages didn't go from 150K to 600K in that same time period.

chii

> My wages didn't go from 150K to 600K in that same time period.

the thing is, there are people who did have such an increase (in wealth, if not by income).

Therefore, the value of said house is higher, because those people who did have wealth increases want those houses.

nickff

Many peoples’ wages went from 0-150k in that period. There were many layoffs during the Great Recession, and comparing asset values from then to now (a point at which there has been ~15 years of secular growth) is absurd.

toomuchtodo

When wage minimums aren’t tied to inflation, we’re stealing from those with the least to increase returns.

tzs

If anyone is curious, I recently happened to look at what the federal minimum wage from the early '80s would be equivalent to today. It's $13-16/hour, depending on what method you use to convert to today's dollars.

So yeah, minimum wage workers (at least in states that don't set the state minimum wage higher than the federal minimum wage) have been getting screwed for a long time.

tbrownaw

Minimum wage is not a market-driven empirical number "here's the lowest wage that we were able to find someone working for".

It's a government imposition that bans any jobs that would pay less than some decreed amount.

MisterBastahrd

I rode in an Uber home from a rehab hospital recently after a long stay in the ICU. The guy was driving a Land Rover. I was a bit confused to say the least. The wear and tear and depreciation of that vehicle has to be crazy.

brandall10

I've had several drivers in the LA area using $80k+ vehicles. The few I've asked, they've mentioned they work from home and it gives them an excuse to drive their car.

chneu

Some of them also don't pay for their vehicles. Their parents lease them a car or some situation like that.

3eb7988a1663

If I were living above my means, that sounds like an excuse I would give as well.

null

[deleted]

fHr

Ubers I take like the last 5 years are brand new Teslas or some other exorbitant car, car lobby shoving them leasing down the throat so they are enslaved to work off just the lease interest for few years

symfoniq

Most of the people I see buying Land Rovers probably need a side gig to afford them.

antiquark

Moral of the story: don't be a gig worker.

PicassoCTs

There must be some magic caloric boundary where "work" becomes a "labour" camp in all but name and a dollar value attached to that.

knodi123

I take your point, but I believe "freedom to quit and go elsewhere" is also a critical distinction...

xethos

Yes, but that starts drifting into a discussion about company towns where one is free to leave - just as soon as the debt (owed to the company that sets your wages and determines your rent) is paid off

deadbabe

What people don’t understand is that pay isn’t everything.

Like remote work, people will accept being paid less to enjoy the benefits of flexibility that gig work provides, which ends up being better than getting paid more but being stuck to a rigid routine.

There is also more upward mobility in gig work as you can optimize over time to earn more, which isn’t possible in some jobs.

Believe me, if gig work was so shitty, people wouldn’t be doing it.

There’s also some hacks to reduce individual expenses like sharing a car with someone else who works different hours, etc.

The problem isn’t that gig work is low pay, the real problem is everything has gotten so expensive. Gig work was always going to be low pay.

ErikAugust

Could you explain what you mean by upward mobility here? If you mean by working more hours, that’s not a novel way to make more money.

chneu

Genuinely curious wtf "upward mobility" is in regards to Uber type gig work.

Working more hours isn't "upward mobility".

rqtwteye

"There is also more upward mobility in gig work as you can optimize over time to earn more, which isn’t possible in some jobs."

I think there is zero upwards mobility. Gig workers will always be a commodity at the bottom of the hierarchy. No promotions, no bonus, no RSU. Even their performance doesn't matter much. For example I can't request a specific Instacart shopper or Uber driver again who did a good job.

buckle8017

But did they earn more than they did before doing gig work?

aqueueaqueue

If genuine question... it depends. Gig work both creates new opportunities (AI classifying RLHF jobs for example) but also systemically removes them. I.e. jobs may not exist now that companies can gig out the bits they need. I have no solutions just an observation.

xyst

“Gig work” was always shitty pay _after_ you consider all of the expenses and depreciation in assets. You are an “independent contractor” after all.

If you drive for a TNC, you may on paper earn more per hour but after gas, wear and tear on vehicle (changing out brakes, tires much faster), increased maintenance, steep depreciation of vehicle, higher insurance premiums for commercial auto.

Then you factor in having to buy your own health insurance on the market, dental insurance, and other expenses that a normal, salaried, full time job comes with. Don’t forget about the taxes you have to pay out at the end of the year that would normally be taken out with each paycheck.

I remember doing gig work when those companies were shelling out $1,000s for new drivers. But once those teasers expired and rates got cut, it didn’t make much sense from a financial aspect to continue doing so.

Great beer money for a college student but I don’t see how folks make a sustainable living on the slave wage.

mx_03

Are you really an independent contractor if you cant set your own prices?

To me Uber drivers are neither employees nor independent contractors. Working as much or as little as they want is not enough to be considered independent contractor.

Aloisius

Why wouldn't you be?

Sure it's more common that contractors offer pricing, but there are industries where the reverse. For instance, magazines typically have set offered rates they'll pay for articles by freelancers.

JumpCrisscross

> Are you really an independent contractor if you cant set your own prices?

Yes. Most tradespeople have limited control over the rates they can charge. To the extent they can set rates, an Uber driver and accept and decline fares.

scarface_74

Why do people think that independent contractors can always set their own rates? If I could just set my own rate I would ask for 1 million dollars an hour.

I could either negotiate the rate and walk away if it isn’t high enough or accept the rate.

Dynamic pricing is suppose to do just that. Uber sets their own rates rate based on demand. Higher prices should encourage more drivers and the market works itself out.

missedthecue

For how many people is gig work their sole source of income?

oh_my_goodness

Yeah Uber makes sense if someone else pays for the car, and you're not paying your own rent.

beepbooptheory

Its not really something you do to get an improvement in your salary.. It would be tough to find something lower paying in my state at least!

ajmurmann

Asked another way: If the gig work vanished over night, would the people doing the gig work new better off?

cute_boi

idk why government don't make law that clearly says, if someone works for more than 20 hours they should be considered full time employee and deserves all the extra perks and benefits.

Buttons840

Can we restructure society so that the only perks and benefits of work is a paycheck?

Healthcare should not be tied to our employer, for starters--and that's a big start. Is there anything else we need to decouple?

Gunax

Perhaps then it becomes 'You have reached your weekly maximum 19.5 hours. Come back next week for more work.'