A new study by the University of California-Riverside has shown that the average gross earnings for ride-hailing drivers has increased by 26% over a two-year period. It also shows that the majority of voters approved of Proposition 22, which has since been ruled unconstitutional.
The report shows that, including tips, the average driver made $34.46 per hour in the third quarter of 2021. This is a drastic increase from the $27.34 per hour recorded in the third quarter of 2019. From the fourth quarter in 2020 to the third quarter of 2021, earnings amounted to $4.3 billion for drivers.
“Across all metropolitan regions in California, average tipped gross earnings exceeded $30 per engaged hour while average untipped gross earnings exceeded $20 per engaged hour,” the report stated. “Gross earnings were the highest in Napa, with average tipped engaged gross hourly earnings of $40.49 and average untipped engaged hourly earnings of $28.15. Gross earnings were the lowest in Bakersfield, with average tipped engaged hourly earnings of $30.22 and average untipped engaged hourly earnings of $21.76.”
Proposition 22 was passed in November 2020 by 59% of the vote and is aimed at having gig workers labeled as independent contractors. It has been supported by major ride-hailing companies like Lyft and Uber.
Geoff Vetter is the vice president of protectdriversandservices.com, which is a proponent of Proposition 22. His organization’s website states that Proposition 22 saved the “flexible, indecent and app-based services in California.”
The website said that with nearly 60% of voters in California passing the bill, it shows that protecting the delivery drivers and having them remain independent contractors, is a priority. It was supported by about 120,000 California app-based drivers. However, it was ruled unconstitutional in 2021 by the Alameda Superior Court of California, according to nelp.org.
“This new study confirms what drivers have been saying for nearly two years; they like and support Prop 22 and it is working as intended to preserve driver independence while increasing earnings and providing new benefits,” Vetter said. “Our coalition and the California attorney general have filed a notice of appeal on the seriously flawed Alameda Superior Court ruling and are confident the Appellate Court will uphold Prop 22.”
The UC-Riverside study did not take into account rising gas prices.