I've used these services on occasion and generally had good experiences. I often wonder if it is a straightforward equation to quantify profitability with all the variables involved with using a personal vehicle. I had a driver lament to me that the high mileage has caused rapid depreciation on his vehicle and that the trade value is much less than the loan balance. It seems to me that one would need to perform due diligence and have basic financial acumen before pursuing this gig. Wondering if anybody here has tried it and what the experience has been.
anyone drive for Lyft or Uber?
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I think that's the key Joe. If you're not financially secure going into it, this type of employment alone isn't going to get you there.
Having the CORRECT liability insurance to carry passengers for hire would eat up any money you could make. I can't imagine making as much as if one worked (pay and tips) for a decent conventional taxicab company.
Originally Posted By: bullwinkle
Having the CORRECT liability insurance to carry passengers for hire would eat up any money you could make. I can't imagine making as much as if one worked (pay and tips) for a decent conventional taxicab company.
This. I saw so many drivers get sued and lose when I worked in claims, since not having the correct insurance can allow your insurance company to deny you. There is a reason these drivers are contractors and not real employees with benefits, it's not a long-term type job.
The Uber black service drivers make a bit more, but you also need a nicer vehicle like a newer black Tahoe or sedan. Nothing like driving people around and racking up miles/diminishing the value of a vehicle you are making payments on.
Having the CORRECT liability insurance to carry passengers for hire would eat up any money you could make. I can't imagine making as much as if one worked (pay and tips) for a decent conventional taxicab company.
This. I saw so many drivers get sued and lose when I worked in claims, since not having the correct insurance can allow your insurance company to deny you. There is a reason these drivers are contractors and not real employees with benefits, it's not a long-term type job.
The Uber black service drivers make a bit more, but you also need a nicer vehicle like a newer black Tahoe or sedan. Nothing like driving people around and racking up miles/diminishing the value of a vehicle you are making payments on.
Agree, bad.
I think these companies started with an app that helped you hitch a ride.
These companies are VERY agressive with the local governments, and not in a good way. I don't think their business model will last.
I think these companies started with an app that helped you hitch a ride.
These companies are VERY agressive with the local governments, and not in a good way. I don't think their business model will last.
Uber is a system designed by corporate savvy people to make money by selling a pipe dream to those people that are in need of short term cash and do not understand or accept the consequences of their actions. Uber corporate operations does not require task specific resources or much of any dedicated capital that can't be instantly converted to the next new corporate enterprise. Uber can exist as long as the cash flow runs and be dissolved in a heartbeat. The physical operations and assets and the associated risks are put onto those that have no possibility of recourse when things go bad while the cash flow and profits are controlled from the top. From Uber management's point of view, what's not to like about this?
Funny how Uber runs idiotic commercials on TV about "get your side hustle on". Brick thrown through TV screen.
Why aren't they honest and just market Uber to drivers as "Hey, you can make us rich. You, not so much." Catchy slogan!
Why aren't they honest and just market Uber to drivers as "Hey, you can make us rich. You, not so much." Catchy slogan!
Wifes friend is doing uber. They got her a deceint car and she pays 20% of her pay to pay for it. They also include insurance!
She is doing very well,making $300/night with it. Huge pay increase from the city bus she drove before going to uber.
She is doing very well,making $300/night with it. Huge pay increase from the city bus she drove before going to uber.
Don't use it as a main source of employment. A friend's mom did Uber as a side job when she's not doing medical coding and paperwork for her husband - she got deactivated for refusing rides to SF. She was also chewing up run-flats on her Sienna AWD as well.
Originally Posted By: Chris142
She is doing very well,making $300/night with it. Huge pay increase from the city bus she drove before going to uber.
I've heard of bus drivers driving for Uber after their shift is over - there's transit agencies who contract their operations out to MV Transportation or First Transit and they pay just above minimum wage(if you drive for an ATU or TWU affiliated agency, you can make a lot more + benefits, however San Francisco is struggling to keep Muni in check). I knew of a bus driver who had his own party bus on the side and he would drive for the agency on a Friday, clock out and grab his bus from the RV lot in town.
She is doing very well,making $300/night with it. Huge pay increase from the city bus she drove before going to uber.
I've heard of bus drivers driving for Uber after their shift is over - there's transit agencies who contract their operations out to MV Transportation or First Transit and they pay just above minimum wage(if you drive for an ATU or TWU affiliated agency, you can make a lot more + benefits, however San Francisco is struggling to keep Muni in check). I knew of a bus driver who had his own party bus on the side and he would drive for the agency on a Friday, clock out and grab his bus from the RV lot in town.
Originally Posted By: Joe1
I've used these services on occasion and generally had good experiences. I often wonder if it is a straightforward equation to quantify profitability with all the variables involved with using a personal vehicle. I had a driver lament to me that the high mileage has caused rapid depreciation on his vehicle and that the trade value is much less than the loan balance. It seems to me that one would need to perform due diligence and have basic financial acumen before pursuing this gig. Wondering if anybody here has tried it and what the experience has been.
I think Uber, Lyft, and the similar services are actually betting on people NOT doing this.
I've used these services on occasion and generally had good experiences. I often wonder if it is a straightforward equation to quantify profitability with all the variables involved with using a personal vehicle. I had a driver lament to me that the high mileage has caused rapid depreciation on his vehicle and that the trade value is much less than the loan balance. It seems to me that one would need to perform due diligence and have basic financial acumen before pursuing this gig. Wondering if anybody here has tried it and what the experience has been.
I think Uber, Lyft, and the similar services are actually betting on people NOT doing this.
I think it was more lucrative in the past when the rates were higher. Everyone keeps saying how they keep cutting the rates so the rides are cheaper but the drivers aren't making as much money as they used to. The company counterclaim is that they're busier now so they make up for the lower wage by being busier.
Probably not smart to start with a new car, maybe one with 100k plus and the drive it up to 200-300k or more. Then repairs eat into profits instead of depreciation. Repairs are typically lower than depreciation though.
Probably not smart to start with a new car, maybe one with 100k plus and the drive it up to 200-300k or more. Then repairs eat into profits instead of depreciation. Repairs are typically lower than depreciation though.
Originally Posted By: Chris142
Wifes friend is doing uber. They got her a deceint car and she pays 20% of her pay to pay for it. They also include insurance!
She is doing very well,making $300/night with it. Huge pay increase from the city bus she drove before going to uber.
I've noticed people exaggerate what they actually make. Not $300/night. Bull. In truth, you only get about $1 per mile in your pocket. Uber skims 25%, so it results in around $1 per mile (UberX) net pay to the driver at UberX rates.
Now subtract the cost of gasoline, tires, oil, etc. and you get the picture.
So $300 miles is about 300 miles & 7 hours of actual driving with riders on board (paid). Now add in idle time (no pay), and the time/miles it takes to fetch a rider (no pay), and that means you add about 4 hours to the 7 hour day, resulting in 11 hour work days to achieve $300, on a busy day, not a typical day even.
Wifes friend is doing uber. They got her a deceint car and she pays 20% of her pay to pay for it. They also include insurance!
She is doing very well,making $300/night with it. Huge pay increase from the city bus she drove before going to uber.
I've noticed people exaggerate what they actually make. Not $300/night. Bull. In truth, you only get about $1 per mile in your pocket. Uber skims 25%, so it results in around $1 per mile (UberX) net pay to the driver at UberX rates.
Now subtract the cost of gasoline, tires, oil, etc. and you get the picture.
So $300 miles is about 300 miles & 7 hours of actual driving with riders on board (paid). Now add in idle time (no pay), and the time/miles it takes to fetch a rider (no pay), and that means you add about 4 hours to the 7 hour day, resulting in 11 hour work days to achieve $300, on a busy day, not a typical day even.
Originally Posted By: oil_film_movies
Originally Posted By: Chris142
Wifes friend is doing uber. They got her a deceint car and she pays 20% of her pay to pay for it. They also include insurance!
She is doing very well,making $300/night with it. Huge pay increase from the city bus she drove before going to uber.
I've noticed people exaggerate what they actually make. Not $300/night. Bull. In truth, you only get about $1 per mile in your pocket. Uber skims 25%, so it results in around $1 per mile (UberX) net pay to the driver at UberX rates.
Now subtract the cost of gasoline, tires, oil, etc. and you get the picture.
So $300 miles is about 300 miles & 7 hours of actual driving with riders on board (paid). Now add in idle time (no pay), and the time/miles it takes to fetch a rider (no pay), and that means you add about 4 hours to the 7 hour day, resulting in 11 hour work days to achieve $300, on a busy day, not a typical day even.
she is very happy with her decision. She takes people to los angelas and palm springs then brings others back.
You dont have to believe me.
Originally Posted By: Chris142
Wifes friend is doing uber. They got her a deceint car and she pays 20% of her pay to pay for it. They also include insurance!
She is doing very well,making $300/night with it. Huge pay increase from the city bus she drove before going to uber.
I've noticed people exaggerate what they actually make. Not $300/night. Bull. In truth, you only get about $1 per mile in your pocket. Uber skims 25%, so it results in around $1 per mile (UberX) net pay to the driver at UberX rates.
Now subtract the cost of gasoline, tires, oil, etc. and you get the picture.
So $300 miles is about 300 miles & 7 hours of actual driving with riders on board (paid). Now add in idle time (no pay), and the time/miles it takes to fetch a rider (no pay), and that means you add about 4 hours to the 7 hour day, resulting in 11 hour work days to achieve $300, on a busy day, not a typical day even.
she is very happy with her decision. She takes people to los angelas and palm springs then brings others back.
You dont have to believe me.
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There's a 5-part series about uber's economics, the second article is probably the most relevant:
http://www.nakedcapitalism.com/2016/12/c...tive-costs.html
http://www.nakedcapitalism.com/2016/12/c...tive-costs.html
A college friend drove a beater Corolla for years delivering pizza. Some fellow drivers drove their parent's BMW's and Mercedes (this is Northern Virgina we're talking about.) You do the math on depreciation vs. pay on that one.
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