Uber drivers net below minimum wage in 6 of 16 US cities, Columbia study estimates

A new analysis by Columbia Business School's Len Sherman estimates that Uber drivers in six of 16 large US cities take home less than the federal minimum wage of $7.25 an hour once fuel and maintenance costs are subtracted. The findings, first reported on October 14, 2026, are based on about 1.8 million Uber trip offers collected by the third-party driver app GigU between March 2025 and March 2026. Estimated net pay per active hour ranged from about $3.18 in Orlando, the lowest, to $21.87 in Boston, the highest. Uber disputes the study and says its drivers earn more than $30 per engaged hour on average once tips and bonuses are included.

Ride-hailing is one of the most visible kinds of gig work, and it has drawn large numbers of workers with a simple promise: be your own boss and earn on your own schedule. The question that keeps coming back is how much of the fare a driver actually keeps. Gross figures can look healthy. Once fuel and upkeep are paid for, the picture can change sharply, and it can vary a great deal from one city to the next.

Sherman's study tries to measure that gap using real offers that drivers received, rather than averages supplied by the company. Its central finding is that location matters enormously. Boston came out on top, which the analysis links to state regulation, while Orlando was at the bottom. The study also counts only the time a driver spends carrying a passenger, because drivers generally earn nothing while waiting for the next request. That choice means the hourly estimate could be higher than a driver's true hourly income over a full shift, but the exclusion of tips and bonuses pushes the other way.

Uber's response focuses on exactly those exclusions. The company says the analysis likely overstates lower-paying offers and overlooks tips, promotional bonuses and minimum-pay rules that apply in some states, including California and Massachusetts. Readers should treat the figures as estimates from one researcher's method, not as an official measure of pay.

For young Indians, the debate is close to home. India's government projects that its gig workforce will grow from about 1 crore in 2024-25 to 2.35 crore by 2029-30. The Code on Social Security, 2020 came into force on November 21, 2025, and the central rules under it, notified on May 8, 2026, require aggregators to contribute between 1 and 2 per cent of annual turnover toward gig and platform workers' welfare, capped at 5 per cent of what they pay those workers. Those rules cover social security, not minimum earnings per hour, which is the issue the US study raises.

Short-term: The study adds pressure on Uber in US cities and states that are weighing driver pay rules, and gives drivers' groups fresh numbers to argue with. Expect Uber to keep contesting the method.

Long-term: The research strengthens the case for pay transparency in gig work, such as showing drivers their earnings per hour after costs.

Who is affected: Ride-hailing drivers in the United States; young people anywhere weighing gig work as a main or side income; app-based companies and their investors; and policymakers writing rules for platform workers.

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