Skip to Content
Uncategorized

There are more gig workers than ever—and that means they’re making less money

September 26, 2018

More gig workers are transporting people and goods than ever. But these drivers’ pay has declined, a new study has found.

By the numbers: The report, by the JPMorgan Chase Institute, found that workers involved in driving saw a drop from an average monthly payment of $1,469 in 2013 to $783 in 2017. On the other hand, the income of gig workers in the leasing industry (for example, Airbnb hosts) grew by 69%.

The sample: The study analyzed 38 million payments to 128 digital gig-work platforms in 2.3 million Chase bank accounts to see how pay has changed from these companies over time. It’s worth remembering that this sample could produce slightly skewed results because Chase customers are generally younger.

Why? The authors credit the drop to a possible decrease in hourly wages (the exact average hourly wage of ride-hailing drivers is still unclear), a decrease in the amount of time drivers put into their gig work, and an increased pool of workers not supported by demand.

Why it matters: As the report says, this is making driving “less and less likely to replace a full-time job over the past five years, as more drivers have joined the market.” In fact, the study found that only 12.5% of ride-hailing drivers in the study were doing so full time. Most gig workers have to supplement their income with money from other sources.

The scale: While the size of the gig economy is a point of debate, it’s clear lower wages in the industry will affect the livelihood of a large swath of people.

This article was first published in our future of work newsletter, Clocking In. Sign up here.

Deep Dive

Uncategorized

Embracing CX in the metaverse

More than just meeting customers where they are, the metaverse offers opportunities to transform customer experience.

Identity protection is key to metaverse innovation

As immersive experiences in the metaverse become more sophisticated, so does the threat landscape.

The modern enterprise imaging and data value chain

For both patients and providers, intelligent, interoperable, and open workflow solutions will make all the difference.

Scientists have created synthetic mouse embryos with developed brains

The stem-cell-derived embryos could shed new light on the earliest stages of human pregnancy.

Stay connected

Illustration by Rose Wong

Get the latest updates from
MIT Technology Review

Discover special offers, top stories, upcoming events, and more.

Thank you for submitting your email!

Explore more newsletters

It looks like something went wrong.

We’re having trouble saving your preferences. Try refreshing this page and updating them one more time. If you continue to get this message, reach out to us at customer-service@technologyreview.com with a list of newsletters you’d like to receive.