Uber drivers have seen a “marked decrease” in their monthly average gross earnings in the past year, according to a new research report from Gridwise, an app that helps gig workers track their earnings.
Uber drivers reported a 17.1% decline in gross earnings in 2023 compared to the year prior, the report said. Gridwise’s report pulls from its database of anonymized gig mobility data from more than 500,000 gig drivers and findings from a survey conducted with 528 active gig drivers and 1,000 gig service consumers.
Lyft drivers, according to the report, saw in increase of 2.5% of monthly average gross earnings in the past year. Both companies saw a percentage decrease in work hours in 2023 compared to 2022, Gridwise said.
“Beyond financial considerations, tips also play a vital role in contributing to job satisfaction for gig workers,” according to the report. Almost 80% of gig drivers reported that “tips matter significantly to their overall income.”
Still, just over one-fourth of rideshare trips lead to a tip, the report said. According to the Gridewise data, rideshare drivers derive only 10% of their income from tips. In comparison, more than half of food and grocery delivery drivers’ income comes from customer tipping.
Part of that issue could be transparency of where a customer’s dollars go. “Three-quarters (75%) of gig service consumers surveyed said gig companies should provide more detailed information on how tips contribute to a driver’s earnings,” the report said. Nearly 63% “believe that a clearer understanding of this would positively influence their tipping behavior.”
All of this comes as Uber and Lyft, specifically, have continued their path to recovery from COVID-19 lows. Uber experienced a 66% jump in trips from January 2022 to the end of 2023, Gridwise said. Lyft saw a 52% rise in completed trips in that same period, according to the report. Both Uber and Lyft are set to report their fourth-quarter and full-year financial reports next month.
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