Research & Sources
Why 70%+ of New Rideshare Drivers Quit Within 12 Months Research, Studies & Key Findings on Rideshare Driver Attrition
1
Why Do 70% of Drivers Quit Driving for Uber & Lyft in Less Than 8 Months?
Source: RideGuru Forum (Industry Discussion)
Key Findings:
- Attrition rate of ~80% within 8 months (per Uber/Lyft IPO S-1 filings)
- 70% of drivers are part-time (doing 30% of rides); 30% are full-time (doing 70% of rides)
- High attrition in both groups
- Primary reasons cited: rate cuts, disappearing bonuses, drivers realizing they're “turning remaining equity in their car to short-term cash”
2
Only 4% of Uber Drivers Remain on the Platform a Year Later
Source: CNBC / The Information (April 2017)
Key Findings:
- Only 4% of people who sign up to drive for Uber are still driving a year later
- #1 complaint among drivers: pay
- Complaints about unfair compensation for long trips
- Lack of tipping option cited as a factor (at time of report)
3
The Gender Earnings Gap in the Gig Economy: Evidence from Over a Million Rideshare Drivers
Source: Stanford University / Uber Research (Cook, Diamond, Hall, List, Oyer)
Key Findings:
- 6-month attrition rate: 65% for male drivers, 76.5% for female drivers
- “Inactive” defined as no rides given within 26 weeks
- Data from January 2015 – March 2017, analyzing all UberX/UberPOOL driver-weeks in the US
- Higher attrition for women partially attributed to safety concerns
4
Rideshare Drivers Turn Over Almost Completely Every Two Years
Source: McKinsey & Company (July 2017)
Key Findings:
- Rideshare drivers turn over “almost completely about every two years”
- High turnover strains margins due to ramp-up time, driver quality issues, and customer loyalty impacts
- 83% of consumers cite convenience (not price) as primary reason for choosing rideshare
5
An Analysis of the Individual Economics of Ride-Hailing Drivers
Source: ScienceDirect / University of Colorado Denver (October 2019)
Key Findings:
- Only 35% of drivers remain active for more than 6 months
- Only 20% of drivers remain active for more than 12 months
- Study by Hall & Krueger found only half of Uber driver-partners stay active after one year
- Data from SherpaShare survey of 963 drivers
6
The Economics of Ride-Hailing: Driver Revenue, Expenses, and Taxes
Source: MIT Center for Energy and Environmental Policy Research / Stanford (Zoepf et al., 2018)
Key Findings:
- Median profit: $3.37/hour before taxes (later revised to $8.55–$10.00)
- 74% of drivers earn less than their state’s minimum wage
- 30% of drivers are actually losing money once vehicle expenses are included
- Median gross driver revenue: $0.59/mile; vehicle expenses reduce real profit to $0.29/mile
- Fuel: 40% of costs · Insurance, maintenance, repairs: 40% · Depreciation: 20%
7
Uber, Lyft Drivers Earning a Median Profit of $3.37 Per Hour, Study Says
Source: NPR (March 2018)
Key Findings:
- “Notoriously high” turnover rates among drivers
- Just 4% of Uber drivers work for the company for at least a year
- Vehicle wear and tear, maintenance, and insurance costs significantly reduce actual earnings
- 73.5% of estimated $4.8B in annual driver profit is untaxed due to mileage deductions
8
7 Reasons Why Uber and Lyft Drivers Are Quitting Rideshare
Source: The Rideshare Guy (July 2020)
Key Findings:
- 68% of drivers quit driving for Uber after six months (Stanford study)
- Within 26 weeks: 65% of male and 76.5% of female drivers become inactive
- Top reasons for quitting: low pay / earnings don’t match expectations, safety concerns, vehicle wear and tear, difficult passengers, feeling exploited by platform companies, ratings system stress, pay structure manipulation
9
‘Our Pay Has Not Kept Pace’: Rideshare Driver Discontent Grows
Source: Insurify (May 2024)
Key Findings:
- Average cost of owning/operating a new car: $12,182/year (AAA, 2023)
- Car maintenance and repair costs up 8.2% year-over-year (March 2024)
- Maintenance, repair, tires: 9.83 cents per mile
- Driver earnings declined from ~$60/hour (2016) to $21–22/hour before expenses
- Utilization rate of 50% effectively cuts stated hourly earnings in half
10
JPMorgan Chase Institute: Online Platform Economy Study
Source: JPMorgan Chase Institute
Key Findings:
- 44% of lowest-income participants stopped platform income within 12 months
- 53% of middle-income participants stopped within 12 months
- 60% of highest-income participants stopped within 12 months
- 58% of transportation platform workers work only 3 months or less per year
- Average monthly pay declined 53% from 2013–2017 ($1,469 → $783)
11
Why the ‘Gig’ Economy May Not Be the Future of Work
Source: PBS NewsHour / JPMorgan Chase (September 2018)
Key Findings:
- More than half of gig workers leave after one year
- For drivers, 58% work just 3 months or less per year
- Monthly incomes fell from $1,535 (2012) to $762 (2018)
- Online income now only 26% of drivers’ total annual earnings
12
What Drives the Drivers Away? Factors Influencing Turnover Intention
Source: ScienceDirect / Transportation Research (June 2024)
Key Findings:
- Study of 1,461 Chinese rideshare drivers
- Key issues: high workload, salary dissatisfaction, poor work-life balance
- Less than 10% show clear professional identification
- About half of Beijing drivers report earning dissatisfaction
- More than half plan to leave rideshare drivin in the future
13
How Income Satisfaction Impacts Driver Engagement Dynamics
Source: ScienceDirect / Transportation Research Part C (November 2023)
Key Findings:
- High commission fees and intense competition lead to low income complaints
- Actual incomes are distinctly lower than those promised by ride-hailing platforms
- Income dissatisfaction directly contributes to large driver turnover rates
- Study developed a Hidden Markov model to measure impacts on driver engagement
14
Uber Statistics 2025: Drivers, Riders, Revenue & More
Source: The Rideshare Guy (March 2023)
Key Findings:
- 6-month attrition rate: 75% for female drivers, 65% for male drivers
- Only 8% of drivers report being satisfied with their Uber experience
- 55% say the biggest improvement would be higher pay
- 71% prefer independent contractor status over employee classification
15
GLG Insights: Uber and Lyft Driver Incentives and Retention
Source: GLG / Former Uber Product Manager (October 2025)
Key Findings:
- ~90% of drivers who drove for Uber in the last month completed only 1–10 trips
- Only a small percentage are full-time drivers (40–60 hours/week)
- Tiered incentive structures are designed to encourage platform exclusivity
- Most drivers switch between platforms based on who pays more at a given time
