Uber drivers are beginning to realize that their earnings are below what was promised to them by the ride-sharing company, according to STL Today.
According to the terms of the company, drivers earn 80% of the total fares while 20% goes to Uber. The company uses this portion to cover its marketing costs, conduct background checks for new drivers and other administrative expenses.
But for Uber driver Demek Dagnechew, ever since he became a driver for the company in Washington D.C. in 2012, he noticed that his salary does not reflect the 80/20 ratio that was promised to him.
Like the other drivers, the company started to impose deductions in Dagnachew's paychecks and charged him $10 a week for the smartphone given to him by the company.
Since Dagnachew uses his own Toyota Camry to transport passengers, he covers all of the car-related expenses, Washington Post reported.
"I though 80 percent of the fares was a very good deal, but in reality Uber was making more money than I was," he said. "I had to pay taxes, gas, mileage and for car maintenance and repairs. I was spending time and making $3 per hour."
According to an Uber spokesperson, some drivers are able to earn about $90,000 a year. Most of these drivers work for at least 40 hours a week.
Shannon Liss-Riordan, an attorney who filed a complaint against Uber in June of this year due to unfair labor practices, said she has not yet a driver for the company who are happy with what they're earning.
"I haven't heard from any drivers who are making anything like that," she said. "I don't see how they think the drivers are going to make more than taxi drivers where they are charging less than taxis and they are having to pay all these expenses."
Aside from receiving a low pay, Uber drivers are not entitled to benefits since they are considered by the company as independent contractors. The only link they have with the company is through its app which connects them to passengers.
In addition, the danger of the drivers' employment status raises insurance liability concerns during accidents, according to a previous article by Forbes.