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Study Finds Female Uber Drivers Earn Less Than Their Male Counterparts

Study Finds Female Uber Drivers Earn Less Than Their Male Counterparts

By Jagmeet Singh | Updated: 8 February 2018 15:02 IST

Highlights

Female drivers earn $1.24 per hour less than men, says study
Male Uber drivers earn $21.28 in an hour on average in the US
Certain factors are considered resulting in gender earnings gap

Male Uber drivers earn roughly seven percent more per hour than their female counterparts, a new study has discovered. The study, which saw the participation of nearly two million rideshare drivers in the US, discovered that women Uber drivers earn $1.24 (approximately Rs. 80) per hour less than men drivers and $130 (roughly Rs. 8,350) less per week on average.

The latest study, titled "The Gender Earnings Gap in the Gig Economy: Evidence from over a Million Rideshare Drivers", in a collaboration between the University of Chicago, Standford University, and Uber's in-house economic team, has been conducted by examining earnings data from over 1.8 million drivers in the US, of which roughly 27 percent were women. Uber's driver fares and fees are set through a publicly available formula that is invariant between male and female drivers, and driver earnings are based on a gender-blind algorithm. However, there are certain technological factors that seem responsible for the earnings gap.

The survey discovered that male drivers were more likely to drive in higher-paying locations where some surge has been imposed as well as they were more likely to drive faster and accept trips for shorter distances to the rider and chose to take longer trips than women drivers. All these cases make male Uber drivers in the US generate an hourly earning of $21.28 (approximately Rs. 1,365) on average, whereas female drivers earn $20.04 (roughly Rs. 1,286) in an hour, on average.

"Overall, our results suggest that, even in the gender-blind, transactional, flexible environment of the gig economy, gender-based preferences (especially the value of time not spent at paid work and, for drivers, preferences for driving speed) can open gender earnings gaps," the study concludes.

Uber, in a post on Medium, stated that it found "no evidence that outright discrimination, either by the app or by riders, is driving the gender earnings gap." The company also highlights that there are factors related to experience, speed, and preferences that are driving the gap and are pointing to a complex issue that has "no quick fixes". Moreover, it is set to implement certain product improvements that will provide male and female drivers with more contextual information to help them move up their learning curve in a shorter time than before. "Over the long term, additional research on the topic by academics in partnership with companies and industries can help advance the conversation in ways that bring us closer toward real and lasting solutions. Uber, for its part, hopes to contribute further to this important topic area through both a product design and research lens," the company adds.

Researchers believe that there is a mixture of constraints in addition to the factors laid down by Uber that are bringing the earnings gap.

"Driving fast. But I also think it's a mixture of constraints, and what I mean by that is men work more hours and take more trips than the average woman," John List, Economics Professor at the University of Chicago and Chief Economist at Uber, who is the lead author of the study, told Freakonomics. So, why is that? Part of it is because women have more constraints - i.e, take the kid to school in the morning. Be responsible for taking Johnny to the soccer game. And I think those constraints then lead women to actually receive less experience and less learning-by-doing. So I think it's actually a mixture of preferences and constraints."

Bridging the gender earnings gap is vital for Uber to attract more women drivers in the future to ultimately enhance the ridership of women riders. In a blog post back in March 2015, the San Francisco-headquartered company pledged to add one million female drivers worldwide by 2020. That pledge had emerged following incidents of assaults by Uber drivers that took place in Boston, Chicago, and New Delhi.

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Study Finds Female Uber Drivers Earn Less Than Their Male Counterparts

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