Columbia adjunct estimates Uber drivers in six of 16 cities earn below the federal minimum wage after costs

Whether the spread across cities is several-fold depends on the measure. On gross pay per mile, Los Angeles at $2.15 is about three times Orlando at 72 cents ^[2][3][16]. On gross pay per active hour the ratio is about 2.4 ^[2][3][17]. After expenses it is about 6.9, from Orlando's $3.18 an hour to Boston's $21.87 ^[19][21].

The gap between gross and net in Orlando is large. On Sherman's figures the city's costs come to about $16.12 an hour out of $19.30, if both numbers cover the same hours ^[2][19][22]. Those costs are gas and car maintenance, and Sherman said they leave out vehicle depreciation ^[20]. The hourly rates also cover only part of a shift. Sherman measured pay on an active ride, and in most cases drivers are not paid while waiting for the next one ^[4]. Business Insider's example is a $40 active-hour rate that could mean $10 for a 15-minute trip and nothing for the wait ^[4].

Uber's spokesperson called the analysis "riddled with flaws" ^[7]. Some of what Uber says was left out, such as tips and promotional payments, would raise driver pay ^[8]. Leaving out depreciation does the opposite to the net figures, because it leaves a cost uncounted ^[20]. Uber also disputes the trip-length and trips-per-hour inputs ^[9]. The spokesperson said its pay per engaged hour is "on average more than 25% higher" than Sherman's figures ^[10].

Orlando is the one city where that claim can be tested against numbers in the article. Its after-cost $3.18 is $4.07 below the federal $7.25 ^[18][19][23]. A 25% increase on the $19.30 gross is $4.83. If costs stayed the same, that would put the after-cost figure near $8, above the line ^[24][25]. The gross would still be about $24, under the $30 Uber has cited ^[5][26]. Uber's figure is an average, so this illustrates sensitivity and is not a finding by either side. In our view the six-city count is the weakest number in the analysis: it rests on inputs Uber contests, and in Orlando the shortfall is smaller than the uplift Uber claims ^[23][24].

The $30 claim is harder to test. Sherman's two reported gross rates straddle it, Orlando under and Los Angeles over ^[2][3]. The Business Insider text does not list gross rates for the other 14 cities or name the six that fall below the minimum wage line. Sherman said many drivers are selective about which trips they take, and that the data shows regional disparities ^[12]. He ties the high pay in cities such as Boston and Los Angeles to local minimum pay laws ^[13] and the lower pay in tourist hotspots such as Las Vegas and Orlando to competition among drivers ^[14].

Sherman, an executive in residence and adjunct professor at Columbia Business School ^[1], told Business Insider that he stands by his calculations and that they show "a far more realistic picture" of what drivers can earn ^[11]. He has also argued that Uber raised its share of each fare in recent years and that this helped it turn a profit ^[15].