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In
this story, writer Timothy B. Lee (@binarybits) becomes a Lyft driver for a week. He focuses on the political questions, such as the controversially low pay. He makes the same mistakes that everyone else makes.
Lyft (and Uber) pay can be low for the same reason McDonalds is open at midnight. In absolute terms, McDonalds loses money staying open late. But, when you take into account all the sunk costs for operating during the day, they would lose even
more money by
not remaining open late. In other words, staying open late is marginally better.
The same is true of Lyft/Uber drivers. I take Uber/UberX on a regular basis and always interview the drivers. Without exception, it's a side business.
This one time, my UberX driver was a college student. He spent his time between pickups studying. When calculating wait-time plus drive-time, he may have been earning minimum wage. However, when calculating just drive-time, he was earning a great wage for a student -- better than other jobs open to students.
Without exception, all the Uber black-car drivers have their own business. They have fixed contracts with companies to drive employees/clients. Or, they have more personal relationships with
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