Why Uber Is A Scam - Math Explains

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Let's go Brandon!
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You Tuber ScIQ: Ok so I was looking at this graph put on Uber’s website today and thought it looked too good to be true. How amazing that Uber drivers make more than any other type of driver. But I knew from my own experience as a rider that Uber didn’t cost that much. In fact, Uber is pretty cheap if you’re a passenger. Sooooo…. how can uber be so cheap, and yet the drivers make so much money??? Now Uber has cut pay to drivers in Detroit to 24cents a mile , but we’re going to stick to the 90c for now. Uber takes 20% of the total fare from the driver for older drivers. Newer drivers get 25% taken. So we’re down to 67.5c per mile. Then you have to deduct tax: In some LA County's, sales tax is as high as 10%, and Uber doesn’t withold taxes for you. The drives are responsible for keeping this money aside to pay the tax department in April. So with the 10% deducted, we’re down to (just over 60 cents) 60.75c Now we need to factor in depreciation of the car. A car is an asset like anything else, and will eventually wear out and you’ll have to buy a new one. Every mile you drive decreases the value of your car and brings you that much closer to needing a new one. This is a big problem if you drive for a living, you’re going to need to buy a new car every two or three years and the cost of a new car is significant. The IRS estimates vehicle cost to drive a vehicle for work at $0.54 a mile . Broken down into Fuel costs @ an average of 12c per mile Depreciation at $0.24c per mile. Repairs, tyres, & maintainence at 9c per mile Insurance, licence, registration, finance, fees - average out to around 9c per mile So with 54c depreciation, repairs, and fuel accounted for, we’re down to just over 6c per mile that actually goes into your hands of drivers. Given that Uber also asks its drivers to buy things like bottles of water, gum, and chargers for it’s passengers, we can say for certain that driving for Uber pays well below minimum wage or even worse, costing drivers money (as is seen directly in this actual fare uber charged one of it’s drivers). So given the math is so bad, why does anyone drive for Uber? Here’s an example of a post an Uber driver posted - he was $400 behind on the rent, and needed to make up some quick cash. In a way, uber is kind of like a loans scheme. Now for some people in desperate circumstances, what Uber’s offering might be an acceptable deal. But for most people, driving for Uber is a waste of time. I wish Uber would be more honest with people. By our calculations, the amount you’re making as an uber driver is nowhere near $19 per hour. If you drive 30 miles per hour at 6.75c per hour, you’re only making $2.00 per mile - by far the worst choice of any transportation job. This number is supported by Not Cool Uber, who have tracked hourly earnings to be around $2.89 and, after vehicle fees are taken into account, $0. Now – I’m not against car pooling. We all need transport, and I know I am a frequent user of Uber & Lyft. But I think that Uber is going about it in an unethical way, which makes me unethical for supporting them as a customer. Uber could easily fix this situation : by reducing their commission, by making rates more reasonable, by giving riders the option to Tip their drivers, or just by being transparent. But that would mean admitting that they’ve generated significant revenue from effectively exploiting their drivers. So the truth is, Uber benefits from maintaining this status quo. Uber is currently reported to be making $10 billion in revenue per year - and that money has to come from someone.

 

Let's go Brandon!
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Low pay, crazy drinking Uber customers:

 

Rx God
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I've got Uber beat by a mile. I have an illegal taxi guy that charges $1 per mile and drives a 2018SUV, he is reliable and charges rates from 50 years ago
He always gets a good tip and lots of referrals, but not so many that I might deny myself a ride

He's located near Old Saybrook, CT, and will drive you anywhere, NYC airports are no problem, he's driven people as far as New Hampshire

This guy is incredible!

From what I've heard being an Uber driver totally sucks
 

Rx God
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You Tuber ScIQ: Ok so I was looking at this graph put on Uber’s website today and thought it looked too good to be true. How amazing that Uber drivers make more than any other type of driver. But I knew from my own experience as a rider that Uber didn’t cost that much. In fact, Uber is pretty cheap if you’re a passenger. Sooooo…. how can uber be so cheap, and yet the drivers make so much money??? Now Uber has cut pay to drivers in Detroit to 24cents a mile , but we’re going to stick to the 90c for now. Uber takes 20% of the total fare from the driver for older drivers. Newer drivers get 25% taken. So we’re down to 67.5c per mile. Then you have to deduct tax: In some LA County's, sales tax is as high as 10%, and Uber doesn’t withold taxes for you. The drives are responsible for keeping this money aside to pay the tax department in April. So with the 10% deducted, we’re down to (just over 60 cents) 60.75c Now we need to factor in depreciation of the car. A car is an asset like anything else, and will eventually wear out and you’ll have to buy a new one. Every mile you drive decreases the value of your car and brings you that much closer to needing a new one. This is a big problem if you drive for a living, you’re going to need to buy a new car every two or three years and the cost of a new car is significant. The IRS estimates vehicle cost to drive a vehicle for work at $0.54 a mile . Broken down into Fuel costs @ an average of 12c per mile Depreciation at $0.24c per mile. Repairs, tyres, & maintainence at 9c per mile Insurance, licence, registration, finance, fees - average out to around 9c per mile So with 54c depreciation, repairs, and fuel accounted for, we’re down to just over 6c per mile that actually goes into your hands of drivers. Given that Uber also asks its drivers to buy things like bottles of water, gum, and chargers for it’s passengers, we can say for certain that driving for Uber pays well below minimum wage or even worse, costing drivers money (as is seen directly in this actual fare uber charged one of it’s drivers). So given the math is so bad, why does anyone drive for Uber? Here’s an example of a post an Uber driver posted - he was $400 behind on the rent, and needed to make up some quick cash. In a way, uber is kind of like a loans scheme. Now for some people in desperate circumstances, what Uber’s offering might be an acceptable deal. But for most people, driving for Uber is a waste of time. I wish Uber would be more honest with people. By our calculations, the amount you’re making as an uber driver is nowhere near $19 per hour. If you drive 30 miles per hour at 6.75c per hour, you’re only making $2.00 per mile - by far the worst choice of any transportation job. This number is supported by Not Cool Uber, who have tracked hourly earnings to be around $2.89 and, after vehicle fees are taken into account, $0. Now – I’m not against car pooling. We all need transport, and I know I am a frequent user of Uber & Lyft. But I think that Uber is going about it in an unethical way, which makes me unethical for supporting them as a customer. Uber could easily fix this situation : by reducing their commission, by making rates more reasonable, by giving riders the option to Tip their drivers, or just by being transparent. But that would mean admitting that they’ve generated significant revenue from effectively exploiting their drivers. So the truth is, Uber benefits from maintaining this status quo. Uber is currently reported to be making $10 billion in revenue per year - and that money has to come from someone.


excellent video !

Around here the legal taxi service drivers get $11/hr, which is minimum wage in CT, but at least it is a company car and gas
 

Rx God
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Uber actually costs more than the legal taxi company, at least on short trips. You'd have to be retarded to drive for them
 

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Uber and Lift are great! Open an app and get a ride wherever you need. Fast and for the most part (95%) the drivers are friendly and safe.

Wish they were around in the 90''s It would have been a lot safer mode of transportation compared to what I used to do.
 

Rx God
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maybe great for the passenger but drivers make 42 cents/hour after expenses are factored in
 

Rx God
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I have a guy that's cheaper than Uber. He runs an illegal taxi for $1 per mile, takes deposit cans and bottles as tips, will petsit for you if you're away. He drives a 2018 SUV.
 

Member
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Just don't ever need to use their customer service for anything, as it is by far the worst I've ever encountered.
 

Rx God
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In NYC I know a few drivers. They all seem to be happy about driving for Uber

it might work out OK in the big city, however I know many suburban cab drivers that have driven for Uber in the past and minimum wage of $11/ hour plus whatever you get in tips using a company car and gas is way better than beating the shit out of your personal vehicle driving strangers around.

NYC probably has great demand in a concentrated area and very high pricing levels. Uber ain't for me as a passenger, or driver !
 

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