I love a good side hustle. Not only do they bring in some extra money, they give a bit of diversity.
I’ve had a few different ones in my lifetime – but I’ve never driven for Uber. I was interested when Freakonomics aired a podcast on What Uber can teach us about the gender pay gap. They interviewed the head of a team of economists at the University of Chicago who were given access to Uber data for Chicago and found that women Uber drivers earn 7% less than men Uber drivers – for exactly the same job!
This is very surprising as Uber seems a very democratic system where buyers (riders) and sellers (drivers) simply meet via the app. Here is the breakdown of the Uber gender pay gap.
When and where drivers drive
There are routes and times that attract more traffic such as to and from an airport, on Saturday nights (when people go out) and Sunday afternoons (when football and other sports are on). Turns out that men drive more often than women on Saturday nights, and in turn women driver more often than men on Sunday afternoons.
Where and when Uber drivers drive can explain 20% of the 7% gender pay gap.
Driver experience
This is equal to the number of trips done by drivers. As with everything, Uber drivers learn by doing and acquire useful tips and tricks. Data shows that men stay on the platform longer than women and therefore acquire more driver experience. 76% of women leave the platform within 6 months, before they have a chance to learn the tricks of the trade. Not only that, the average Uber man driver drives 50% more trips than the average woman Uber driver.
Driver experience can explain 30% of the 7% gender pay gap.
Driver efficiency
Men Uber drivers are completing more trips per hour than their women counterparts. It may sound stereotypical, but data shows that men Uber drivers drive 2% faster. They just drive faster to the destination – and riders like to get to point B faster, so they give them a higher rating, which means they tend to get picked more often.
Driver efficiency can explain 50% of 7% gender pay gap.
In essence it seems that women Uber drivers earn less because they are more cautious and gentle, tend to pick routes and shifts that fit around their families and don’t necessarily see driving as a “real” job.
So what are good side gigs for women?
These are some I’ve done in the past:
- Blogging
- Online researcher (IPO news)
- Babysitting and cat sitting
- Tourist guide / assistant
Which side hustles have you done in the past? I’d be very interested in hearing your stories and opinions on this topic.
Image courtesy of venturebeat.com.
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