Drivers for ridehailing services in Chicago earn less than the $15-per-hour minimum wage and would be paid substantially more if they were classified as employees instead of as independent contractors, according to a study that draws on city government data and research done for Uber and Lyft.
The study by the labor-backed Illinois Economic Policy Institute and researchers at the University of Illinois Urbana-Champaign concluded the typical driver in Chicago makes $12.72 an hour after expenses. The hourly pay could exceed $21 per hour if drivers were classified as employees, with vehicle expenses paid by the ridehailing companies, the report said.
The findings represent “the most comprehensive picture of the economic conditions facing Uber and Lyft drivers in Chicago because it uses actual data on trips and drivers and fares paid by customers,” said a co-author, Frank Manzo IV, executive director of the Policy Institute.
He said higher wages, aside from improving drivers’ living standards, would increase tax revenue and reduce reliance on public services such as Medicaid and food stamps.
“There is a public cost to low wages,” Manzo said. “Uber and Lyft have been free-riding on taxpayers for years.”
The Illinois Coalition for Independent Work said the study is “significantly flawed” and doesn’t account for the limited hours per week most drivers work. The coalition represents ridehailing services and companies that deliver food and other items, such as Instacart.
“Drivers...
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