# How Is A Driver Supposed To Live On This?

I know a Driver that took a trip to Cupertino and thought he was going to make money doing so. Boy, was he pissed when he did the math. He drove 2.5 hours, for a total of 87 miles and the fare for the trip was \$88.00. After dropping his first rider off he received a second ping so he added a local Cupertino trip to his fare for an additional \$7.00, increasing his income for the trip to \$95.00. You would think this driver did pretty good on this trip . . .

This is how his pay for the trip runs out:

1. Total Fares: \$95.00      Total Revenue: \$95.00
2. Time In Hours: 2.5       Commissions: \$18.60
3. Total Miles Driven: 87   Vehicle Cost: \$48.72
4. Cost Per Mile: \$0.56         Gas Cost: \$8.10
5. Miles Per Gallon: 35     Safety Fees: \$2.00
6. Price Per Gallon: \$3.259  Net Profit:  \$17.58
7. Number of Rides: 2 Average Rides\Hour: 0.80
8. Safety Fee: \$1.00       Hourly Wage: \$7.03\Hour
9. Uber Commission: 20%

This calculation fails to pay the driver’s own business. As Independent Contractors the driver is also his own small business. If the driver’s small business does not get paid a portion, how will the driver pay for maintenance, water, candy, phone power cords, or be able to purchase a new car to continue his company after his present car fails? So, just for the sake of discussion we need to pay the driver’s company \$2.50 per hour or \$7.50 out of the drivers Net Profit above, leaving \$10.08 as the new Net Profit. This leaves the driver with a Gross Pay of \$10.08 or \$4.03 Per Hour. Now we have to take the standard payroll tax deductions  from his Gross Pay. As the drivers are Independent Contractors Uber does not withhold taxes, nor contribute an employers share to the taxation. So, the driver is responsible for both the drivers tax and the employers contribution, leaving the driver with an obligation to pay Self Employment Taxes of about 25%. \$10.08 at 25%= \$2.52  \$10.08 –\$2.52=\$7.56 which means the driver’s Net Profit is actually \$7.56 or \$4.03 per hour as his Hourly Wage.

It is not reasonable that Uber has reduced rates to such a degree that it leaves drivers with not even the minimum wage. Uber screams to the public that drivers are making lots of money, every figure they present the public is above minimum wage . . . And, it is also a LIE! Independent Contractors are not protected by most Labor Laws and have little Governmental regulation, leaving Uber the ability to set rates at whatever level they choose and divers with nobody to represent them when rates drop to low to pay their obligations nor feed their families.

The drivers are subject to a contract pushed through their SmartPhone while at the same time an Update to the Uber System was being done. Most drivers did not even realize that one of the clicks they made was a contract change for weeks after it happened. A few drivers have tried forming an Association to represent them, but without funds to put the word out to all the drivers nation-wide and the necessary funds to actually create the Association, progress is very slow.

There are over 162,000 drivers being subjected to Uber’s abuse and they need help. They need Government intervention. They need Legal Representation. They need someone that knows what to do in this situation other than for them to quit working for Uber. Some drivers are stuck where they are because they have purchased cars via the Uber Auto Purchase Program. Other drivers have not yet realized how poorly they are being paid, and Uber is hiring more drivers every day.  As far as Uber is concerned, drivers are nothing more than a “commodity” and no concern for their obligations or needs of their families is part of the plan for Uber’s future.

## 16 thoughts on “How Is A Driver Supposed To Live On This?”

1. Shamman says:

But we are helping travis cartel to increase his fortune every nanosecond
And we are helping travis cartel to depressiate the taxi industry by 80%”with last travis cartel fares”
And we are helping travis cartel to turn the pseudoriders more and more cheap, frugal, arrogant, rough, cinics, disgusted, classless, shameless, demanding a lot more for a lot less
So, he should be proud of the nice job we are performing with our little and irrelevants sacrifices

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• Agreed, but I do not have to like it. I do not have to like it one bit!

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• Kent says:

LOL that “vehicle costs” whatever that is, would be \$48.

Liked by 1 person

• I didn’t make the calculator used for this calculation. I will ask them to check for the error and fix it if necessary. Thanks.

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2. Ray says:

Uber’s slogan should be “let us help you eat your car”. Or, ” uber: converting your car’s equity into our pocket.” I think the one I’ve come up with that I like the best…”uber: get taken for a ride”. Applies to all concerned.

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• I like this! May I use your line . . “Uber, get taken for a ride”

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3. Shamman says:

Ooooooop
Come on bro
Why u soo shabby; the important thing here is that we are helping travis cartel to increase his fortune every nanosecond
And we are helping travis cartel to depressiate the taxi industry by 80%”with last travis cartel fares”
And we are helping travis cartel to turn the pseudoriders more and more cheap, frugal, arrogant, rough, cinics, disgusted, classless, shameless, demanding a lot more for a lot less
So, he should be proud of the nice job we are performing with our little and irrelevants sacrifices

Liked by 1 person

• I agree with your statement, but you forgot that now we are working to provide Uber the money to replace us with their autonomous cars. Does it not seem ridiculous that we are working to get ourselves fired, and still not getting paid a respectable wage? I mean, it is bad enough that we are working to pay for them to replace us, but doing so without getting anything in return is just plain stupid. Do they really think we are going to stand-by and do nothing? We may do just that, nothing . . .

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• Shamman says:

Autonomous cars?
Lol
Is so funny to see how many mental retarders driving for traviscartel worry and get in panic with the idea of driverless cars
Driverless car lol, what a joke, it doesnt never goint to happen we dont got to worry about it
The main asset that travis cartel has is the bounch of mental retarders with some degree of authism and their santander leased car
Travis cartel dont have to worry about wear, tear, deppressiation, storage, gas, maintenance, repairs, registration, insurance, clean up……..ect; travis cartel knows that he has all of us willing to do all of this and more for nanopeanuts

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4. Claiming your car costs 57 cents a mile is a fallacy. Based on those numbers, you get a new \$50,000 car every two years which I hope no one is doing. ANYONE who is doing this in a car worth more than \$5000 is a moran. That’s right, I said “moran,” because they’re not smart enough to be a “moron.”

Second, anyone who works for Uber in a market where Lyft is available is also a dumb ass. You work full time for Lyft and you make more per mile and you don’t pay commission so you get to keep everything but the T&S fee, and you get tips.

To match my \$1000 payout on Lyft, I would have to drive 50% more miles on Uber. Just on earning alone, I’d have to make \$1250 on Uber before commissions and I would be making \$.15 less per mile so I would have to drive almost 50% additional miles just to match the miles on Lyft. Why anybody is still driving for Uber on anything but a very limited basis is mind blowing. Idiots always claim they make more on Uber than Lyft because they don’t have the patience to wait on the lyft calls. Lyft rides are longer and pay more on average than Uber. Lyft clients generally do not make you wait because they know they meter starts running when you show up. I only have to get half the actual rides that an Uber driver gets to make the same money. Yeah I’m not as busy, but that’s a good thing since I make more when I do drive.

Liked by 1 person

• What people fail to realize is our Government has gone to great lengths to come up with the 0.57 figure, and at the end of the year you will find it fairly accurate once you include your mechanical repairs, preventative maintenance, and things like your car wash expense. My costs are actually higher than the 0.57 suggested by the government, but this is due to my own stupidity and my initial belief that Uber was an ethical company.

And yes, I do agree Lyft the better paying of the two. There is simply not enough Lyft Rides to go around for all of us to take advantage of. But, does it really matter . . .

The concern is not truly the 0.57 write off or the better rates provided by Lyft, but the absolute “SHIT” rates being paid by Uber. What needs to happen is somebody in our Government get off their ass and champion the Independent Contractor. You see, Independent Contractors are not supposed to be used as a means to not pay the person performing the labor what it actually costs the person to do the job. Many corporations are abusing the position of Independent Contractor by creation of a job and suckering people into doing the job for so cheap that they cannot make an adequate living doing the job. The Independent Contractor is not supposed to be contracted at just the cost to do the job either, but at the cost realized by the Independ3ent Contractor for the contractor to operate as a small business performing the job. This means that a reputable company that hires Independent Contractors has to pay the Independent Contractor adequately to perform the job, pay the Contractors necessary expenses, pay the Independent Contractor a reasonable wage, and provide a reasonable income for the Contractors small business to profit.

This allows the hiring company the ability to save by use of Independent Contractors because they do not have to pay retirement, sick leave, medical, and other benefits the employer may be paying regular employees. People like Kalanick abuse the Independent Contractor position by not even paying e4nough for the Contractor to earn a living. This is what Kalanick will learn during the next year. Kalanick has enabled any competent politician to step up to the plate and re-write the labor laws to include Independent Contractors as a protected class. Kalanick will likely “piss off” every corporation in this Country because his blatant abuse of Independent Contractors is going to cause government regulation of the position and no matter what Kalanick does, the end result will be in favor of the Independent Contractor. Why? Because this is America and nobody will ever be required by law to do a job for less than it costs to do it. And, after the government steps in to tell Kalanick the error of his ways, the laws will be re-written effecting every company in this Country that hires work out to Independent Contractors, and those companies are not going to be pleased with the result and the cost that will be required of them. Kalanick will likely become quite unpopular because of this.

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• David says:

The \$0.57 operating expense includes gas, insurance, maintenance, so u can’t subtract for gas again. Also, I’m not sure what “paying the business” means- you are the business, so there’s no separate entity to pay. Hourly is simply profit divided by hours. I don’t drive for either, but am considering it, & somewhat discouraged by the numbers though. I drive for a service like Postmates, & found this post useful. Thanks

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• David,

You are NOT the business when it comes to pay. After your expenses, your car, and yourself . . . The business has to receive an income. This is the profit earned after everybody else gets their money. This is the what is left for the company to grow on. This is the money to buy a new car, advertise, buy new equipment, hire a bookkeeper, and/or other. If you don’t have adequate profit to pay your company, when you need a new car, how do you pay for it?

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• David says:

Again, the \$0.57 includes EVERYTHING related to car ownership & operation, meaning it includes the cost of the car itself, gas, insurance, maintenance, over its life. If you own the car outright now, you may not be incurring that cost now, but you are being compensated(if you work for a company that does that), or allotted deductions, as if you were paying a payment. Therefore, using that figure which you said the government so meticulously researched, you should be saving that money for buying a new one.

Liked by 1 person

• Agreed, but you should not be the one saving that money. Save your money for your personal car. The company should have money to buy your work car.

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