Drivers’ hourly expenses vary depending on their model of car and full- or part-time status. For part-time drivers, costs range from $2.94 to $4.38 per hour, and for full-time drivers they vary from $3.76 to $6.46 per hour. Thus, the AAA expense data suggest that, taking expenses into account, the average Uber driver-partner is likely to earn at least as much per hour, and probably more, than the average taxi driver and chauffeur. Earnings Regressions We next consider how earnings vary across Uber driver partners. Table 7 presents earnings regressions using the BSG 2014 survey data, where the dependent variable is the log of the earnings per hour net of Uber fees.25 The column labeled (1) presents a model with explanatory variables that relate to driving with the Uber platform, such as whether the driver provides rides under the UberBlack service and the driver’s average weekly hours since partnering with Uber, as well as city dummy variables. The second column adds variables reflecting the drivers’ personal characteristics, such as race, experience and education. Tenure at Uber is defined as the number of months that the driver has used the platform. The city dummies are jointly highly significant, which is not surprising in light of the results in Tables 3 and 5. Drivers who provide the UberBlack service earn more per hours than those who exclusive provide uberX rides, which is not surprising given that UberBlack requires a luxury car and drivers who are typically commercially licenses. There is a quadratic relationship between earnings and accumulated seniority using the Uber platform, with earnings peaking after about 14 months. Drivers with more potential experience (defined as age minus education minus 6) also have slightly higher hourly earnings. Drivers’ education, race, and sex are not statistically significant predictors of earnings. 25 It is not possible for us to link the BSG survey data back to Uber administrative data. Consequently, we are limited to the survey data collected by BSG and the administrative information that Uber provided to BSG. Thus, we cannot estimate driver expenses because we do not know the type of car or mileage that each driver drove. Moreover, the earnings per hour data provided to BSG indicated the decile interval of the drives hourly earnings in 2014, not the exact hourly earnings. We use the log of the midpoint of the interval as the dependent variable. 28
An Analysis Of The Labor Market For Uber’s Driver-partners In The United States Page 28 Page 30