This is interesting. So why are there so many Uber/Lyft drivers? Is it because there is a glut of unused cars in America and they provide a way to monetize it?
That is, if you aren't actually paying for the car's costs, then it IS your profit.
That is, if you aren't actually paying for the car's costs, then it IS your profit.
1) People don't understand the true costs of ownership and driving and think they are yielding the entire cost of the fair.
Or
2) They enjoy driving, getting paid for it is a bonus.
Or
3) They don't/can't have "regular employment" for whatever reason and want to make some money in their spare time, even if it's just a little. Like some in college who only works during breaks or weeks when the courseload is smaller.
Or
4) Someone who is employed but only drives when they are bored on the weekends rather than watching Netflix or going to the pub.
Of course #3 becomes self perpetuating at scale.
For #1 - story time: I had already decided I was going to buy a new car, which car I would buy, and that I was going to finance it. I was trying to squeeze another year out of my current car first tho. My sister was absolutely baffled by this and couldn't understand that this would save me money. No matter how much I tried to explain it she didn't "get" it.
From TFA: >"Imagine developing a company specifically to take advantage of people’s ignorance of how expensive it really is to drive their own car. What would this company look like?“ (the answer is of course that it would look like very much like Uber or any other ridesharing company)
5) Because it is hard to find a reliable 2nd job where the hours do not impinge on a 1st job, especially when low-wage/unskilled jobs tend to schedule in ways to make having a 2nd job difficult (e.g. not consistent, last minute changes, etc).
6) Because it is harder for some to find as many unskilled jobs as most due to their age, race, or education.
That said. You need to compare to not minimum wage but minimum wage that takes into account commuting and random scheduling BS. As a somewhat counterexample, I was talking to a recent grad at a Meetup a couple weeks ago who was looking to get into CS things who was going out to drive for a few hours after the Meetup. Not something you can do with a McD's job.
I'm no fan of the gig economy in general but there are some advantages to on-demand work so long as every agrees that there isn't a lot of money to be made. As a full-time job I fully agree with MMM.