A few days ago I had a Rider that said he was an UberX Driver. He told me how he was earning good money driving UberX. For a moment he and I almost reached the point of argument, but argument is never my intent with a fellow driver over any topic if it can be avoided. This driver claimed to earn about $1000.00 per week and take home about $750.00. He said that he leased a car from “Breeze” which rents for about $250.00 per week. He also said he worked 40 to 50 hours per week. This would mean that his car likely costs him about 0.55 per mile to operate, or more. As it is a Prius, there is likely a significant savings in fuel but his per mile costs would still remain high.
If he is earning $1000.00 in fares, Gross take home of $750.00 then deduct about 12.5 miles per hour multiplied by 50 hours = $350.00 reducing his take home to $400.00 then divide this by 50 hours= $8.00 per hour. Deduct 25% for self employment taxation and he now takes home $300.00 per week Net. I am sorry, but I do not see this as an income. Isn’t the minimum wage in San Francisco $10.00 per hour? Even if it is less, it is not as low as $8.00 per hour. This calculation does not include the expenses of cell phone or insurance as well as any other expenses not normal to the 0.56 deduction.
This pay calculation is based on hours driving, but is that all you do as a Ride-Hail Driver? What about the hours running your own business, maintaining your car, and maintaining tax information. Give it a moments thought. How many hours do you spend keeping your car clean, oil changes, tire changes, tune ups, or just washing your windows? I easily spend an hour each day I work just doing the non-driving type of work necessary to perform the tasks of ride-hail driver. Do you understand that if you are a UberX Driver you likely are experiencing “cash flow” not true income. This misunderstanding comes from the drivers not realizing that the cash they hold in their hand is the equity they are using of their car. The end result of this is you will end up without a car as you will use yours up and have no cash to replace it with.
Uber Logic is a dangerous belief. Uber Logic says that regardless of Uber you would still have the expense of your car, cell phone, and such so these costs should not be a factor in your calculations relative to income. Bullshit! You may still have these expenses, but not at the rate it costs you to use these things while driving for Uber. Your car one year from now with less than 10,000 miles will be worth a hell of a lot more than your car than your car with 25,000 miles on it and all of the minor damage it will receive putting that much mileage on it.
This calculation may not fit everybody that drives for UberX, but it does for most of us, including the driver that believes he is earning a good income that rode in my car the other night. If you drive for Uber and want to ascertain how much you are really making working with Uber, it is simple to calculate. But you need to keep some records of your activities first. Over the period of about one week, keep track of miles driven. Not just miles of which you carry a passenger for pay in your car, but actual mileage from the start of your shift to the end of your shift. Also keep track of the actual hours you are working, again from start to end of each shift worked. Then visit http://uberdrivers.com and use their calculator to check your income. Even if you discover you are actually making money, the numbers do not provide enough money for you to pay yourself a minimum wage. Even worse it that Uber intends that the driver pick up the tab for the new “Gap” insurance.
If you believe you are actually making real money driving UberX, it is important that you visit a professional accountant and ask him to break down your earned dollar for you. He will likely tell you that if you work at 80/20 with Uber, that Uber gets about 0.28 to your 0.24 of your earned dollar. If 75/25 Uber gets 0.32 to your 0.22 earned dollar. The rest of your dollar is expense. You will note that Uber always gets more than you while your other expenses stay consistent.
What can you do about this. The best thing to do is join the US RIDE-HAIL DRIVER’S ASSOCIATION, it is free and there is strength in numbers. FaceBook Groups are great community sites, but unless they are a licensed Association they cannot represent you in legislative acts nor negotiate contracts for you. The US RIDE-HAIL DRIVER’S ASSOCIATION’s goal is to provide a unified voice for Ride-Hail Drivers. There is no need for you to quit participation in your facebook groups as these groups if they affiliate with us will be where we discuss topics with the drivers anyway. It is however necessary that all drivers join an Association to enable to be represented. If you are a member of an Association, ask them to affiliate with us to create a unification of drivers. There is no restriction on how many different associations you can be a member of unless the by-laws for the Association specify a select region or class of person represented. Time is running out folks. We are losing ground daily as Cities and States nation-wide make laws that will impact us into the future, without any representation of the driver at all. And, unless you want your next contract with the TNC’s to be as one sided as the contracts of the past, you voice needs to be heard.
Keep in mind that the drivers are the only income producing part of the TNC’s and we are making the TNC’s money so they can replace us with autonomous cars. Wouldn’t it be nice if we were to actually make a few bucks before we join the unemployment lines? Don’t mess around, join the US RIDEHAIL DRIVER’S ASSOCIATION now!