According to an independent study recently published by the City of Chicago's Department of Business Affairs and Consumer Protection (BACP), ride hail drivers’ earnings in the city are very strong, namely those of Transportation Network Providers (TNPs) such as Uber and Lyft.
Jeff Coleman, Executive Director of Barbershop Network News Association and business leader in the City of Chicago, commends driver earnings and the services they provide to residents across the city.
“This report showing that Uber is paying $30 per/hour in Chicago is a real positive for the city and the South Side," Coleman said. "Not many companies can say they offer that amount plus be such an essential service. I applaud this,” Coleman told the Southland Marquee.
The Public Passenger Vehicle (PPV) Study, commissioned by the City of Chicago, finds ride hail drivers earn over $1,000 a week on average. According to the study, 90% of Uber & Lyft drivers make more than $18.90/hour after expenses and 25% of Uber & Lyft full time drivers make more than $28.90/hour.
The study found that no full-time Uber or Lyft drivers earned less than $21 an hour over the study period, which dates back to 2017, and only 0.4% of part-time drivers did after expenses. However, TNPs pay about 40 times the amount that taxi drivers pay in fees to the city, including licensing fees. PPVs are for-hire vehicles including taxicabs, Transportation Network Providers (TNPs), liveries (limousines and town cars), pedicabs, charter and sight-seeing buses, private ambulances, water taxis and tour boats. The scope of the city's assessment was limited to Chicago taxicabs, TNPs and liveries. TNP companies include Uber, Lyft and Via and these drivers primarily work part time with less than 5% of drivers working more than 30 hours a week.
Based on 2019 City of Chicago 311 calls related to PPV data, the vast majority of 311 calls related to both taxi and TNP rides contained negative reports, with the most common concerns related to poor service or driving. Of these passenger complaints, eight times more 311 calls were made about taxi drivers than TNPs, despite TNPs having a ‘Call 311 for help’ signage mandated, and 10x as many drivers.
Underserved communities, which are known to be least often serviced by PPVs in Chicago, have continued to make up a larger and larger portion of TNP trips: 18% in 2018 to 29% in 2020, the study said.
The BACP is an organization that is committed to providing transportation accessibility for all individuals and ensures Chicago’s public passenger vehicles are safe, reliable, and provide residents and visitors positive transportation options. The PPV independent study was commissioned by the City of Chicago and conducted by Crowe LLP, a public accounting, consulting and technology firm based in Chicago.