A study conducted by Uber and the Inter-American Development Bank reveals that most Uber drivers in Latin America face economic difficulties, lack social security coverage, and are burdened with debt.
A recent study by Uber, in collaboration with the Inter-American Development Bank (IDB), highlights the dire economic challenges faced by Uber drivers across Latin America. The research, conducted in eight countries including Argentina, Brazil, and Mexico, found that 88% of drivers reported lacking financial security. Factors contributing to this insecurity include unstable working conditions for 54% of drivers and financial strain for 34%. Furthermore, the study revealed that a striking 75% of respondents are living with debts, leaving them vulnerable in times of need.
The research also shed light on the retirement savings situation among Uber drivers in the region. Only 30% of drivers were contributing to a pension system at the time of the survey, indicating a significant gap in long-term financial security. This lack of participation in social security systems underscores the precarious nature of gig economy jobs, where drivers are often left to fend for themselves without the benefits typically associated with traditional employment.
In terms of working hours and earnings, drivers averaged 19.3 hours per week, earning approximately $7.30 per hour before expenses. This raises concerns about the sustainability of their livelihoods and the broader implications for workers in the gig economy, particularly as economic pressures continue to mount in the region. The findings pose essential questions regarding the responsibility of companies like Uber in providing better protections and support for their drivers, especially in an industry characterized by flexibility yet fraught with challenges.
