Gig Economy: More Hours, Less Pay in 2024

In 2024, individuals working for companies like Uber and Instacart found themselves working harder but earning less money. Despite an increase in their working hours, their average income saw a decline.

A report by Gridwise revealed that Uber ride-share drivers experienced a drop in average weekly earnings by 3.4%, earning roughly $513. Meanwhile, their working hours slightly increased by 0.8%.

In contrast, Lyft drivers fulfilled 5.4% fewer hours yet faced a significant 13.9% reduction in income, leading to weekly earnings of about $318.

Instacart shoppers, involved in shopping and delivery services, saw their annual income decrease by 8% to $194, alongside a reduction of 4.9% in working hours.

As per Ryan Green, CEO of Gridwise, all platforms reflected declining earnings for drivers, signaling a broad challenge faced by gig workers.

Conversely, DoorDash workers saw their gross weekly earnings rise by 4.8% to $240, although the increase in app usage by 5.2% offset the gain in hourly wage.

Amazon Flex workers found themselves in a similar bind. Earnings rose 18.1% to $413 weekly, yet their working hours ballooned by 20.4%.

A modest rise was seen for Uber Eats drivers, as weekly earnings edged up by 5.1% to $178 with a 2.1% increase in time spent working.

Favor, part of Texas grocer H-E-B, was unique as gig workers earned 3.4% more, reaching $155 weekly, even while reducing their service hours by 13.1%.

Responding to these findings, an Uber spokesperson mentioned that average hourly earnings surpassed $30. Lyft discussed record total earnings of $9 billion in 2024 through remarks by CEO David Risher. Instacart representatives dismissed the report as misleading, claiming steady earnings for their gig workers.

Gridwise based its conclusions on data collected through its app, analyzing 171 million trips and $1.9 billion in earnings.

A noteworthy aspect of income for restaurant delivery drivers was their reliance on gratuities, which formed 53.4% of their earnings. Grocery delivery personnel obtained 45.7% of earnings from tips, contrasting starkly with ride-share drivers, where tips accounted for only 10.4%.

Intensified competition in claiming financially rewarding rides and orders has pushed some gig workers to consider starting independent businesses, hoping to surpass app-based earnings.

Despite ongoing inflation, many consumers intend to continue using ride-sharing and delivery services. A majority of the 1,000 respondents in a January Gridwise survey considered the pricing of Uber, Lyft, and Instacart as reasonable.