Chicago rideshare drivers typically earn more than $1,000 per week, with one out of four making close to $30 per hour, a Public Passenger Vehicle (PPV) Study shows.
Chicago’s Department of Business Affairs and Consumer Protection (BACP), which initiated the research three years ago, has published the findings of the study that was conducted by Crowe LLP, a public accounting, consulting and technology firm based in the City.
“The PPV industry is a significant part of the Chicago economy, serving as a relatively flexible earnings opportunity for chauffeurs and providing passengers with a means of traveling around the region,” the study says. “A key takeaway from this study is that there is enormous variability among and across chauffeur conditions.”
In further detailing earnings, the PPV Study found rideshare drivers earn more $1,000 a week on average — with 90% of Uber and Lyft drivers making more than $18.90/hour after expenses and 25% of full-time rideshare drivers making more then $28.9/hour.
PPVs are for-hire vehicles that include taxicabs, Transportation Network Providers (TNPs), liveries (limousines and town cars), pedicabs, charter and sight-seeing buses, private ambulances, water taxis and tour boats. The scope of the city's assessment was limited to Chicago taxicabs, TNPs and liveries. TNP companies include Uber, Lyft and Via, and these drivers primarily work part time with less than 5% of them working more than 30 hours a week.
The report determined that no full-time Uber or Lyft drivers earned less than $21 an hour over the study period, which dates back to 2017, and only 0.4% of part-time drivers did after expenses. However, TNPs pay approximately 40 times the amount that taxi drivers pay in fees to the city, including licensing fees.
The study included recommendations that could level the playing field for rideshare drivers and taxi/limousine drivers.
Among the suggestions was that the city consider expanding data collection related to the PPV industry, while another was that the city look into reviewing all licensing and other fees related to public chauffeurs to standardize and promote fairness across chauffeur types. Also pertaining to the chauffeur industry, another point was that the Chicago City Council may have an opportunity to reevaluate existing requirements for chauffeur licensing and to review other requirements of public chauffeurs to determine if there are any unnecessary cost barriers.
Based on 2019 City of Chicago 311 calls related to PPV data, the vast majority of 311 calls about both taxi and TNP rides contained negative reports, with the most common concerns targeting poor service or driving. Of these passenger complaints, eight times more 311 calls were made about taxi drivers than TNPs, despite TNPs having a ‘Call 311 for help’ signage mandated, and 10 times as many drivers.
Underserved communities, which are those least often serviced by PPVs in Chicago, have continued to make up a larger and larger portion of TNP trips: 18% in 2018 to 29% in 2020.
BACP is an organization that is committed to providing transportation accessibility for all individuals and ensures Chicago’s public passenger vehicles are safe, reliable and provide residents and visitors with positive transportation options.