Two words: income inequality. This is obviously a nationwide economic problem but it’s specifically exemplified in the on-demand sector. You have companies like Uber being valued at 10, 20, 40 and now 50 billion dollars. During that same period of time, while equity is skyrocketing for Travis and co., driver’s pay has been slashed no less than 3 times in major markets.

Drivers obviously value the flexibility afforded by gigs like Uber and Postmates but the current model just isn’t sustainable. In my e-mail inbox right now there is an ad that says earn up to $35/hr driving for Lyft. Yea that might be possible if you drive on Saturday nights from 12–1 am during peak Prime Time. But for the rest of the hours during the week, pay is much lower and there’s a 20% commission to deal with. Uber has recently even started testing a 30% commission in certain cities.

These income estimates also neglect the fact that drivers burden all of the risk when it comes to insurance and the cost of operating their vehicle. Uber relies on the fact that most drivers aren’t able to accurately calculate the cost of their vehicle. I’ve tried to figure it out — it’s hard. Even with my degree in aerospace engineering, I can’t make a great estimate.

Our workforce is shifting towards 1099 style employment but there’s only a small percentage of people getting rich and improving their lives. Driving for Uber was never intended to be a full-time career but there are plenty of people being forced to do just that.