[zaroth]

> I realised a lot of these Uber drivers (usually migrants with broken English) probably didn't have many other options to earn money.

This is just such a perfect observation. What we are seeing here is an end-run around the minimum wage. The so-called "1099 economy" is increasing employment of unskilled workers who would otherwise be unemployable at the mandatory minimum.

Where else are people going to find a job they can set their own hours, work 12-hours a day, 80 hours a week, making $5/hour sitting down? If the minimum wage weren't so damn high there might be competitive alternatives.

Keep in mind, the goal isn't to "make" $80k, or even $60k, and then lose over half of it to taxes and phased-out benefits. If you're supporting your wife and two kids, the goal is to make about $32k, which on a 1099 will work out to just about maximize your EITC, food stamps, Medi-Cal, etc. and in the end your net value is equivalent to about $100k fully loaded (the employer's fully loaded cost) of regular W-2 employment.

[hackuser]

> If the minimum wage weren't so damn high ...

It's about where it was 50 years ago, measured in real dollars: http://www.pewresearch.org/fact-tank/2013/12/04/5-facts-abou...

By other measurements, it's relatively low: http://www.cepr.net/publications/reports/the-minimum-wage-is...

[wutbrodo]

You're talking about something completely different from the comment you're responding to. You're comparing entirely to historical averages (even the "other measurements" link is all about historical levels relative to other indicators). The parent comment appears to be speaking normatively, as in "much higher than it should reasonably be".

[stickfigure]

The article mentions several times that expected wage post-expenses is around $10 per hour, not $5. That difference is material.

[zaroth]

You're right, the article claims OP had 1099 earnings of $9.34/hour assuming expenses of $0.51 per paid mile. But then also goes on to note that other driver's expenses were more like $0.70 per paid mile.

I wonder if she amortized that $100 of tire damage in that $0.51 / mile! Also, what about the unpaid miles getting to a fare in the first place, or getting back home after a fare takes you off the beaten path? I think it's extremely difficult to fully account for all time and expenses in that line of work. Finally, subtract another 7.6% off the top for 1099 vs W2.

[stickfigure]

She also pointed out that her take-home was lower than that of the other drivers she checked against because she did not take full advantage of surge pricing and other "tricks" of experienced drivers. And she pointed out that some drivers' expenses were less than her $0.51.

I suspect $10/hr is a fairly reasonable average. The discussion is interesting enough even without needing to exaggerate that number.