MIT Research Group reported that Uber Technologies and Lyft Inc drivers are earning below minimum wage and challenged CEO Dara Khosrowshahi about the concerning issue, The study was made by MIT Center for Energy and Environmental Policy Research observed that the average profit of the driver was $3.37/hr which is quite less than the standard wage offered in most of the nations.
The survey was taken place on more than 1,100 workers working for these companies. These companies are already battling complaints made by the underpaid drivers while the companies have defended their business models that drivers enjoy the flexibility of the work they have also stated that they are earning more than the minimum wage and have lost a lot of court cases on this issue.
Khosrowshahi indicated that MIT’s study on the tweet as Mathematically Incompetent Theories at least as it pertains to the ride-sharing like Uber Pool furthermore Uber’s Chief Economist challenged the study’s report. The Cheif Economist of Uber stated that MIT is using flawed methodology he also stated that according to the Uber’s Estimate drivers should be earning around $15.68.
The earning in the MIT’s report minimum earning made by the drivers but MIT’s lead author Stephen Zoepf stated that
I can see how the question on revenue might have been interpreted differently by respondents” and called Hall’s rebuttal thoughtful.
“I’m re-running the analysis this weekend using Uber’s more optimistic assumptions and should have new results and a public response acknowledging the discrepancy by Monday,”
Mr.Zoepf will be re-running the analysis this weekend using Uber’s Data and will have the results on Monday.
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