New York Times Tells IDG Member’s Story and Exposes Affordability Crisis Hitting Lyft & Uber Drivers

Excerpts:

As an Uber driver in New York City, Anup Baniya works long hours behind the wheel of his S.U.V., navigating snarled traffic.

The passengers he ferries across the city may be surprised to learn how little he earns.

Mr. Baniya, an immigrant from Nepal, brings home roughly $25,000 each year after paying for his vehicle and other business expenses.

His wife, Sonu Khadka, stays home with their 7-month-old son, Ivaan. There is little money left at the end of each week.

“If I make a few extra bucks, maybe we can get some things for the baby,” he said.

The Economics of Driving for Uber

Mr. Baniya’s greatest expense is the vehicle he uses for work. He pays $2,400 per month to rent a hybrid RAV 4 S.U.V. and $450 per month for car insurance.

He cannot rent just any vehicle. It must be licensed through the city, which capped the number of for-hire vehicle licenses in 2018. More drivers are renting, and prices are high.

He spends about $100 per week on gas, though that could increase with the recent jump in gas prices. He visits the carwash twice a week and gets regular oil changes. All together, his business expenses cost more than $30,000 per year, according to a copy of a recent tax return….

Mr. Baniya said that the city’s minimum pay rules for ride-share drivers had not kept pace with inflation and that Uber was keeping too much of the fare — nearly one-fourth per trip, according to research by the driver group. He argued that the city should limit the number of new drivers, not vehicle licenses.

“I feel like customers are paying way more than they used to pay, but drivers are making way less than they used to make,” he said.

Read the full article here