Re:What Uber Left Behind in Asia
by temp20160423 on Sunday May 05, 2019 @05:46PM
(#19835294)
I think the key reason to present min wage vs ridesharing wage is to ask how much pressure is there to raise wages for drivers. The article presents some data that wages for drivers in these countries is high relative to other jobs (or no previous job in many cases). Uber/lyft are in trouble in USA because even though the pay is not much higher than min wage, people keep demanding that uber/lyft pay their drivers higher.
The recommended minimum wage in South Africa is $173 per month. Of course things are cheaper in South Africa, so that doesn't tell you anything by itself. But we can use Purchasing Power Parity measurements to make it mean something! South Africa's PPP is 0.455 [1]. What that means is that a basket of goods worth $1 in America would cost $0.455 in South Africa. So we now can use about a 2.2x multipler to start ballparking buying power.
So 5.1x the minimum wage works out to 173 * 5.1 * 2.2 = $1,941 in US dollar equivalent purchasing power per month. Now let's assume full time work of a basic 40 hour week to get this into an hourly rate. $1,941 / 160 = $12.13. Lo and behold, their "5.1x the minimum wage" works out to almost an identical market rate for drivers as in the US. They earn about $0.20 less per hour, in adjusted spending power, than they'd earn in the US. Whenever a datum leaves you wondering what it really means, it's often one that's been chosen to present a sensationalized image to what's often a pretty boring reality.
[1] - https://data.worldbank.org/indicator/PA.NUS.PPPC.RF?location...