A new ranking has revealed the states where it's the hardest to make a living as a rideshare driver, based on living costs - with South Carolina named the worst area.
High Rise Financial pulled together the ranking that scored each state across four key areas: drivers’ earning potential, average journey fares, customer demand, and living costs.
The ranking found that - when each area's mean hourly wage for drivers is taken into account (as reported to the Bureau for Labor Statistics), the majority of states (83%) make it impossible for drivers to get by and earn the current living wage.
The current living wage in each state is designed to reflect the necessary expenditure for necessities, including food, childcare, health care, housing, and transportation. However, the research found that the typical driver is $7,251 away from the recommended sum in their area.
Drivers in South Carolina will find it particularly hard making a living, as the state's living wage currently stands at $36.3k. According to the BLS data, a full-time driver in the state earns $19,590 - leaving them short by a huge $16.7k each year.
On the other end of the scale, drivers in New Hampshire will find it less stressful offering rideshare services, and can even cut down their hours where needed, as a full-time driver reportedly earns $41.6k - 16% more than the current living wage of $36k.
The ten best states for Uber drivers, based on ease of making a living
State | Average Wage | Living Wage | State | Average Wage | Living Wage |
New Hampshire | $41,600 | $36,026 | South Dakota | $28,560 | $30,888 |
Minnesota | $40,150 | $36,899 | Oklahoma | $30,020 | $32,760 |
Washington | $37,590 | $38,563 | Florida | $30,820 | $35,859 |
Iowa | $31,140 | $33,654 | Nevada | $28,420 | $33,779 |
Michigan | $32,250 | $34,029 | New Jersey | $35,120 | $42,786 |
The ten worst states for Uber drivers, based on ease of making a living
State | Average Wage | Living Wage | State | Average Wage | Living Wage |
South Carolina | $19,590 | $36,338 | New York | $33,250 | $45,739 |
Virginia | $23,320 | $40,352 | Kansas | $25,000 | $34,070 |
Missouri | $23,190 | $33,883 | New Mexico | $24,960 | $33,800 |
Oregon | $28,080 | $40,581 | Wisconsin | $25,560 | $34,112 |
California | $31,510 | $45,386 | Massachusetts | $34,240 | $45,510 |
Of course, earning a livable wage isn't the only consideration when it comes to which state is the best for Uber drivers, which is why the study looked at demand, earning potential and fares. Earning potential is based on the mean hourly wages taxi drivers report to the Bureau for Labor Statistics - beyond how this relates to a living wage.
Customer demand compared the number of drivers in each state to the local population, to see which area is overserviced by rideshare services. Average fares looked at the typical per-mile price customers must pay for their journey, which will affect uptake in each area.
Part-time Uber drivers who don't rely on the service as their main form of income will want to prioritize trips in Minnesota, as they stand to make a decent wage when servicing a large pool of customers.
The hourly mean wage for rideshare drivers in Minnesota stands at $16.71 - and despite this being lower than the reported national average ($20.15), it’s still a huge 52% higher than what Uber drivers make in the lowest-earning state, South Carolina ($10.97).
The state also benefits from comparatively low journey fares, with users expected to pay $2.59 per mile. This means a trip from the state’s iconic William A Irvin Museum to the must-see Split Rock Lighthouse will cost you $123 without a tip. Although this seems high, it’ll be attractive to out-of-state customers who are used to more expensive rates, as the same journey would set you back $309 in New York ($6.53 p/m).
The state also ranked second for driver competition, meaning that there’s a smaller ratio of rideshare drivers to the state’s population when compared to other areas - including Nevada, where there are a huge 98% more full-time drivers than there are in Minnesota.
Overall, Minnesota scored 7.9 /10 in the ranking, with living costs being the main reason it landed the top spot. On the other end of the scale, Wisconsin scored 4.5 /10. Wisconsin was dragged down by its regional competition, with a higher ratio of rideshare drivers to customers and a higher fare rate of $3.47 per mile - 34% higher than Minnesota.
This fluctuation between what Uber drivers can stand to earn in each state will affect how their prioritize their work-life balance and their wellbeing, a High Rise Financial spokesperson says. Based on the national average hourly wage for Uber drivers ($20.15) and reported 15.4 hours put in per week, this injury leave equates to a huge $620 in lost earnings last year.
He says: “In highly competitive jobs like rideshare driving, employees are more likely to avoid taking time off work even if it’s drastically needed, or will rush back to work before they’re ready to reduce their losses - especially if it's already hard enough to earn a living wage in their area.
“Without a fixed number of days available for sick leave per year, many workers - particularly those working on a part-time or self-employed basis - may avoid addressing an injury altogether to avoid taking time off, which can result in legal implications for employers.”
-ENDS-
Data gathered from the U.S. Bureau of Labor Statistics, Google Maps and YouGov.
Full state data
Data was not available for every state, as local salaries have not yet been reported to the Bureau of Labor Statistics.
Part of Search Intelligence Ltd. Company registered in England No. 09361526
Post Courtesy of highriselegalfunding.com.
No comments:
Post a Comment