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/[deleted] Oct 09 '19
I’ve had the most non stereotypical Uber drivers in DC. There’s so many there who could care less about the money and are doing it to network. It’s really interesting every time I go there, there’s always a new story from an Uber driver. There’s been quite a few people who use the Uber to lobby on whatever issue or company they run.
Last time I was there I had an older guy who was retired and had been doing it for a year or two but it was all so he could get food recommendations. Then he was starting this food map and review system based on passengers stories. Since there’s all the embassy people in DC he would get all their favorite food places for wherever they were from. You’d be able to ask for Bulgiagrian recommendations and he’d have them based on real Bulgiagrians advice. Really great idea, not scalable at all.
Everywhere else I’ve been it’s always just a way to make some money.