Study Finds Male Uber Drivers Earn More Than Their Female Counterparts, Despite Gender-Blind Pay Algorithm
Male Uber drivers are earning more than female Uber drivers, despite the equal paying field, according to a new study.
Is it discrimination? Is the gender wage gap real after all? Is the patriarchy alive and kicking?
No, men just drive faster on average.
The study was released by Stanford University, the University of Chicago and Uber itself. Uber pays its drivers based on a gender-blind fare algorithm that factors in how long the drive is in both time and miles. After analyzing data from more than 1.8 million Uber trips, researchers discovered that male drivers earn 7% more per hour than women on average, and have boiled it down to three different reasons as to why:
Men drive in more congested areas
Men will typically drive in areas that have higher levels of congestion, meaning they have a better chance of getting higher rates, lower wait times, and have access to “surge pricing” wherein Uber rates are doubled or tripled depending on the level of traffic in the location.
Men drive more for Uber than women
The more time spent driving for Uber and gaining experience on variables like best times to drive, best locations, and working out the best strategy for accepting and cancelling trips means you’re more likely to earn more. On average, men work longer for Uber than women. 77% of women drivers quit Uber after 6 months, in comparison to 65% of their male counterparts
The study also noted, “Drivers who have completed over 2500 trips make nearly 14% more than those in their first 100 trips.”
Men drive faster
The final factor in why men earn more on average is that men have higher average speeds on their trips. On average, men drive 2.2% faster than women.
Equality of opportunity beats equality of outcome.
The full report, titled, “The Gender Earnings Gap in the Gig Economy: Evidence from over a Million Rideshare Drivers,” is available here.
Feature image via Forbes
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