Uber hasn’t taken taxi drivers’ jobs but has slashed their wagesUber’s arrival has led to more taxi jobs, but the transport firm’s model means drivers at traditional cab firms now earn less.
That’s according to a working paper from University of Oxford researchers, which finds no evidence that the rollout of Uber and its ride-hailing app has led to fewer jobs for traditional taxi drivers since it introduced its “sharing economy” model in the US in 2010. But the number of self-employed drivers, including those who work for Uber, has increased almost 50 per cent since the app’s introduction in US cities.
“Employment, if anything, expands,” says Carl Benedikt Frey, one of the paper’s co-authors.
Drawing on statistics from the US Bureau of Labor Statistics, the paper also finds that traditional taxi drivers in cities where Uber operates have seen their earnings decline. The researchers found that such drivers have seen their hourly income fall by up to 10 per cent on average.
Meanwhile, the hourly takings of self-employed drivers have risen by the same amount.
The paper’s authors say these findings are consistent with previous research “showing that Uber drivers exhibit higher [hourly] earnings than conventional taxi drivers”. The reason for this is likely to be that the Uber app ensures cars carry paying passengers more of the time.
Meanwhile, traditional taxi drivers have more competition and so may pick up fewer rides each hour.
The self-employed drivers included in the statistics may not all work for Uber, although it dominates the US ride-hailing market. In some countries, the status of drivers as “self-employed” has also been disputed. A UK court last year ruled that two British Uber drivers were entitled to employment rights as “workers”.
The paper does not consider the issue of employment-related benefits, which self-employed drivers may forgo. “Obviously there’s a trade-off for someone who decides to be self-employed,” says Frey. “If you’re self-employed, you may have more flexibility in terms of working hours, but you may have fewer protections.
However, it is important to be cautious when extrapolating broader trends from the paper as Uber’s impact is likely to vary from country to country, says Diane Coyle at the University of Manchester, UK. For instance, Uber is licensed differently in the UK, which also has a higher minimum wage.
Uber declined to comment on the paper.
source:
https://www.newscientist.com/article/21 ... technology
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