Studies show that Uber drivers make a bit higher than minimum wage and above.

Depending on the city and driving shifts, Uber drivers can make more money.

I have not read the studies but I believe that Uber provides more value than the wages to the drivers because of Uber’s flexibility. You can drive when you want to. In fact, many Uber drivers that I talked to said that they Uber only when they wanted to. Some mentioned that driving Uber beats working at other places where working schedules are unpredictable (Starbucks, McDonalds, and other fast food chains).

So factoring the flexibility, Uber drivers’ utility is higher than the wages earned.

I am not here to defend Uber. I just want to explain why Uber dominates. Why drivers and customers use Uber.


Uber is not perfect. The CEO just resigned recently because of aggressive culture and not so subtle tactics against regulators. Still I believe that Uber will be around and dominate. Lyft has been trying to beat Uber but Uber is staying strong with its money and tactical dominance.