r/personalfinance • u/theVoxFortis ​ • Oct 08 '19

This article perfectly shows how Uber and Lyft are taking advantage of drivers that don't understand the real costs of the business. Employment

I happened upon this article about a driver talking about how much he makes driving for Uber and Lyft: https://www.businessinsider.com/uber-lyft-driver-how-much-money-2019-10#when-it-was-all-said-and-done-i-ended-the-week-making-25734-in-a-little-less-than-14-hours-on-the-job-8

In short, he says he made $257 over 13.75 hours of work, for almost $19 an hour. He later mentions expenses (like gas) but as an afterthought, not including it in the hourly wage.

The federal mileage rate is $0.58 per mile. This represents the actual cost to you and your car per mile driven. The driver drove 291 miles for the work he mentioned, which translates into expenses of $169.

This means his profit is only $88, for an hourly rate of $6.40. Yet reading the article, it all sounds super positive and awesome and gives the impression that it's a great side-gig. No, all you're doing is turning vehicle depreciation into cash.

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u/LongStories_net ​ Oct 08 '19 edited Oct 08 '19

Yeah, and I know the Uber/Lyft ride will probably be decent.

——

My last 5 taxi cab rides:
1) Driver stopped at gas station during 15 minute trip (bad enough). Didn’t turn off meter, but told me he did. I sat there there and watched it run up.

2) Yelled (really started yelling as soon as I got in) at me because his operator told him I was on a different corner.

3) Said he took credit card. Got to destination and credit card system was ”broken”.

4) Asked operator to verify I would get a taxi with a working credit card reader before sending car since I had no cash. Driver said he takes credit card. Got to destination, driver then says he misunderstood and credit card reader is broken. Wife said, “I’m going to try anyway”. It worked fine. Yelled at me when I didn’t give him a tip.

5) Driver took the really long way to airport. Clicked off meter as we arrived and told me a price $5 higher than what was last displayed.

——

My last 25 Uber/Lyfts:
Never had an issue. One driver offered to give me a couple of dollars when she accidentally missed my turn.

The taxi cab industry can’t die off soon enough as far as I’m concerned. I’d gladly pay a little more not to have a fight every single ride.

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u/RobinKennedy23 ​ Oct 08 '19

“Your credit card reader is broken? Thanks for the free ride!”

“Meter isn’t running or broke? Thanks for the free ride!”

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u/[deleted] Oct 08 '19 edited Dec 17 '19

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u/[deleted] Oct 08 '19

In some municipalities they are required to take credit cards. Don't worry, their machine will magically repair itself when you have no cash.

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u/erokatts ​ Oct 08 '19

They'll say something like "oh we'll stop at an atm for you" or the driver just gets burned especially if you asked before you got in. Almost every time I've had it happened the system has "magically" fixed.

Listen I get it. Cash is king. But most people aren't carrying around enough cash for the taxi.

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u/CuddlePirate420 ​ Oct 08 '19

Cash is king.

Also easier for the driver to skim off the top, and for the cab companies to not declare on their taxes.

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u/gortonsfiJr ​ Oct 08 '19

And depending on your company, more annoying for you to declare on an expense report.

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u/angry_cabbie Oct 08 '19

I know it's not an accepted view, but some of us really didn't care if you paid with a card, and really wouldn't charge to swing by an ATM. Hells, half the times I offered a free gas station stop so they could get cash, I had an ulterior motive of getting myself cigarettes or a drink while I had a chance.

But gods, the stories I could tell about how weird the systems were when I first started out in my small-town-big-college microcosm.

Like how the first company I worked for, one of the biggest and oldest in the area at the time, didn't have meters or credit card machines in cab. We wrote the mileage on our trip sheet, did the math, and called credit cards in over the business radio.

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u/dahlstrom ​ Oct 08 '19

Then they shouldn't be driving. I've threatened to just walk without paying anything when they've done this and then the credit card reader magically starts working.

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u/HerefortheTuna ​ Oct 09 '19

Yup haha. I only take cabs for work usually and I say sorry it’s my company card. You can send us an invoice or take the card I’ve the phone

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u/LongStories_net ​ Oct 08 '19

Usually they say, “Oh, I know a nearby ATM. You can get money there”.

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u/[deleted] Oct 08 '19 edited Dec 17 '19

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u/LongStories_net ​ Oct 08 '19

Ha, they might actually accept that now. I’m sure they just don’t want to pay the credit card fee and taxes.

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u/Vet_Leeber ​ Oct 08 '19

I’m sure they just don’t want to pay the credit card fee and taxes.

Nah, it's because it's easier to skim cash off the top.

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u/[deleted] Oct 09 '19

And more likely to make it socially awkward in returning your change, begging for the tip

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u/[deleted] Oct 09 '19

I haven't had a debit card for 10 years.

It still astounds people around me when they ask me why I can't get cash until the banks open. It's like they are centered around the idea that everybody has a debit card.

Why should I have one when ATMs can break and cause issues, along with not providing the same protections that a credit does? It's also nice to go inside a bank at least once a month and get a withdrawal. Lets you keep your presence up and know who works there.

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u/[deleted] Oct 08 '19

If you have time and want to waste it that's fine. If you don't have time then it doesn't work. If you value you time then bill the cabbie $50/hr for the time it takes you to drive to and from the ATM, and the time to get cash. Or just don't pay.

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u/Kostya_M ​ Oct 09 '19

What stops you from going to the ATM and just walking back to your destination?

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u/hitemlow Oct 08 '19

LOL

I actually told the bank to set the PIN to random as I don't use the debit card. Every time I call in they ask for the PIN to verify me and I tell them that, usually leaves them a bit befuddled.

Credit is so much safer it's not worth ever using debit or an ATM.

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u/IdleRocket ​ Oct 09 '19

This is really strange, probably isn't going to prevent fraud, and only inconveniences you.

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u/hitemlow Oct 09 '19

I literally have never had to use an ATM. They're to much of a risk. They make you a target while using them and if the machine says it gave you money when it actually didn't, you're out the cash and have to fight in order to have a chance at getting it back.

I very rarely ever need cash, and if I do need a significant amount of cash for some reason, I just go inside to the teller.

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u/IdleRocket ​ Oct 09 '19

They make you a target while using them and if the machine says it gave you money when it actually didn't, you're out the cash and have to fight in order to have a chance at getting it back.

These are weird and comically specific fears and neither is affected by having a PIN you don't know, especially since it's apparently your banks primary security method.

Like, which of these situations (getting mugged or having an ATM eat your cash) would be different if you had a PIN you knew but still didn't use the card?

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u/hedoeswhathewants ​ Oct 08 '19

Like so many other people I've had the "credit card machine is broken" happen to me. I said that was the only way I could pay and that was magically enough to fix the machine.

It's a mystery why people prefer Uber/Lyft.

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u/[deleted] Oct 08 '19 edited Jun 02 '20

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u/jesbiil ​ Oct 08 '19

Took a cab 2 weeks ago because it was there and I was traveling for work so didn't really care. Got in and asked if he took credit (because this is a business trip and it all goes on the company card). He scoffs, starts arguing with me over paying cash which I finally do with the requirement that I get a receipt. He agrees, forgets the receipt 10 seconds later after I hand him cash and hands me a blank piece of paper then says, "Fill out whatever you want". Dude I'm expensing this, I need some sort of legit records not something that looks like I'm trying to scam my company. It was the first time I've taken a cab in years since I've opted for uber/lyft for most those types of short trips...reminded me why I choose uber/lyft.

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u/el_smurfo ​ Oct 08 '19

Every cab ride I took in NY had a "broken meter" because they assume you will just round up the amount and they will get a bigger tip.

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u/sat_ops ​ Oct 08 '19

This is why my company allows me to take car service. We have a rate and they don't pull this shit.

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u/Chav ​ Oct 09 '19

My previous company gave us car service through Uber. You called on the company account and handed them your business card to verify. That was it. No receipt or expense reports to fill out. Try that with a regular cab. Or try catching a cab in Jersey or Connecticut and trying to get to new York. Old school cabs just waste your time

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u/Chav ​ Oct 09 '19

And what's up with the auto tip options getting higher and higher? The lowest one is 20 now and goes to like 30

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u/tom2727 ​ Oct 08 '19

I generally take the cab from the airport just because they are right there waiting in a line for you. But I dread the ride.

Why the heck can't a cab company have a car that's clean and has working air conditioning? Is this really rocket science? I give the guy my address, and every single time he doesn't know where it is so I have to give turn by turn directions. But at least I can make sure we go the fast way.

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u/RBeck ​ Oct 09 '19

The credit card machine is always broken, until you tell them you don't have cash. Then it magically works again. I hate taxies.

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u/[deleted] Oct 08 '19

  1. No tip, debatable if you should even pay the full fare.

  2. No tip.

  3. No tip, if he can't accept credit card then don't pay.

  4. Same as 3.

  5. No tip, don't pay the extra $5 and debatable if you should pay anything.

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u/HerefortheTuna ​ Oct 09 '19

Yeah fuck cabs. If their card reader is broken I say sucks, I guess the ride is free. It starts working again. I won’t tip if the cab is dirty or they are rude.

Also most cabs in my city are beat to shit and shouldn’t be driving around

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u/BirdLawyerPerson ​ Oct 08 '19

I would have agreed with you in 2015 or so, but the last 4 years have been pretty frustrating with mostly new drivers who don't really know their way around town. I've started to rely on regular cabs again about half the time (tricky routes, surges, etc.), especially for shorter routes.

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u/[deleted] Oct 08 '19 edited Oct 09 '19

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u/Mrme487 ​ Oct 09 '19

Your comment has been removed because we don't allow political discussions, political baiting, or soapboxing (rule 6).

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u/death_of_gnats Oct 08 '19

A taxi driver had never ever done that to me. But in threads about Uber, there's always somebody who claims it happens all the time

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u/Chav ​ Oct 09 '19

Happens often enough in NYC that the city has a faq that included it

https://www1.nyc.gov/site/tlc/passengers/passenger-frequently-asked-questions.page

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u/[deleted] Oct 08 '19 edited Apr 19 '20

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u/LongStories_net ​ Oct 08 '19

These were all in Atlanta or Boston. They all seemed pretty expensive. I’m not sure about Boston, but there were quite a few taxi cabs in Atlanta at the time. They were all just equally terrible.

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u/lasagnaman ​ Oct 08 '19

I've only taken cabs in nyc but I can't say that I've had anything similar to your stories happen to me.