Uber drivers earning less than minimum wage?

There’s not much take-home pay left for Uber drivers once all their costs are counted, a new study shows.

The Centre for Future Work at the Australia Institute looked at Uber’s cheapest service, UberX and found drivers earnt between $A11 and $18 per hour – less than the country’s minimum wage, Stuff reports.

Costs incurred by the drivers – who are independent contractors – pay 25% to Uber, along with tax, ACC, insurance, petrol costs and car maintenance.

Ben Wilson, of the New Zealand Uber Drivers’ Association, estimates the small amount of drivers who had been driving long enough to work out an hourly rate get between $10 to $12 an hour.

New Zealand’s minimum wage is currently $15.75.

“It’s not back-breaking but it is dangerous,” Wilson says.

“One of the main ways people die and Uber drivers are doing ten times as many hours on the road. There’s no danger money in there.”

“You’re working quite hard compared to someone on the minimum wage at McDonalds and there are all these risks and costs.”

An Uber spokeswoman told Stuff drivers choose Uber because of the flexibility it offers.

“Earnings vary depending on when driver-partners choose to use the app, and the vehicle they choose to drive.”