Researchers were particularly interested in discovering the extent to which economic inequality was a condition for the rise of Uber, and in turn whether gig jobs would affect a household’s economic stability. The team to explored these questions via surveys. This is, according to the researchers, one of the first studies about the rideshare industry to draw from interviews with drivers themselves.
Uber’s website attracts drivers with the line, “Drive when you want, earn what you need.” What are the benefits and costs of such flexibility?What they found was that the cost of that flexibility is significant. Uber promises a lucrative job based on a flexible schedule, but drivers are basically responsible for all of the costs of running a car service. They have to pay for the car, insurance, cleaning, and whatever else comes up, while Uber retains control over the compensation. And if a driver is sick and unable to work, or gets in an accident, there are no protections in place.
Package delivery companies take a different approach with IC drivers. They negotiate their rates. They have insurance options available to them to protect themselves and their families. Most work with 3rd party administrators such as Flexible WorkForce to gain access to group pricing for individuals on things like health, dental and vision. Uber does not seem to consider such things in their original business plan.