Uber boom brings down taxi drivers’ wages by 10%

New survey shows that Uber has led to a 10% fall in wages for traditional taxi drivers, but overall driver numbers have boomed.


uberUber’s rollout across US cities has driven down wages by 10% among salaried taxi drivers, according to a new report from the University of Oxford.

The Oxford Martin School report Drivers of Disruption? drills into the the impact of Uber on taxi drivers from 2009 to 2015, using data on the rollout of Uber across cities from the American Community Survey (ACS), a leading source of information on the US workforce.

It found that on average the number of self-employed taxi drivers in a city went up by almost 50% after Uber was introduced, but also driving wages down by an average of 10% of traditional taxi drivers, compared to cities where Uber remained absent.

The study also found that:

• The number of hours worked increased among both salaried and self-employed taxi drivers

• Even traditional taxi services experienced growing employment after the introduction of Uber

• Uber drivers typically earn more per hour than their counterparts

• The decline in traditional taxi incomes was offset by an expansion of business income among self-employed drivers

“The data provides the first hard evidence of the impact of the ‘sharing economy’. Uber is the flagship of the sharing economy, but what our study shows is that even in one of the sharing economy’s most exposed industries, traditional jobs have not been displaced,” said Dr Frey, Co-Director of the Oxford Martin Programme on Technology and Employment.

The report raises questions about efforts being made, in parts of Europe and elsewhere, to ban or restrict the adoption of Uber. The losers, however, are undoubtedly traditional taxi drivers who have already lost 10% of their income… while the winners are customers who have more choice amid falling prices.

As Uber continues to spread across the US, it remains to be seen what the next trend will bring. It is certain, however, that traditional taxi drivers will continue

Monty (605 Posts)

Monty Munford has more than 15 years' experience in mobile, digital media, web and journalism. He is the founder of Mob76, a company that helps tech companies raise money and exit. He speaks regularly at global media events with a focus on Africa, writes a weekly column for The Telegraph, is a regular contributor to The Economist, Wired, Mashable and speaks regularly on the BBC World Service.


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About Monty

Monty Munford has more than 15 years' experience in mobile, digital media, web and journalism. He is the founder of Mob76, a company that helps tech companies raise money and exit. He speaks regularly at global media events with a focus on Africa, writes a weekly column for The Telegraph, is a regular contributor to The Economist, Wired, Mashable and speaks regularly on the BBC World Service.

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