I don't love the new rates. But

Drivers Advice, Experiences
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#1

My spreadsheet shows I’m making (net after fees, tolls, expenses, anticipated repairs costs for brakes, shocks, and tires, plus depreciation) almost exactly what I was making before the rates cuts on both a per hour and per mile basis (including dead miles).

I’d love to get red in the face and scream about the low rates too… But then I look at my sheet and realize it didn’t actually impact me negatively. In fact, on a weekly basis I’m able to get rides at more times now so I’m able to make more per week than I was before (I’m not in a city and the demand was very low during the week before the rate cuts).

#2

I don’t think it’s even worth doing on weekends anymore lol. Try to catch surges and even those are short lived. There’s a reason there is such high turnover with uber: people figure out it’s basically a scam and the money is not there.

#3

I don’t subscribe to the .54 a mile for expenses camp but in a lot of markets it’s slim pickings at .70 a mile and not much action during the week. In smaller areas there are more dead miles because it’s further between pickups AND direction of traffic is based on time.

#4

It’s worse than that. Your figures assume every mile is paid, and I estimate 40% 50% are paid, so you’ll pay 2x 57.5 cents per paid mile. You work at a loss, from an IRS 1040C perspective.

#5

I only work four hours a day…usually early morning til’ after lunch. I can make $200. The guys here who drive at night and on weekends can make $300+tips. I don’t get a lot of tips in the morning… You gotta work weekend nights if you want to earn money. I met a guy who drives in San Diego and earns $1300 a week. He has an Uber xl… More money.

#6

I have a Prius and unless I work weekend nights, I wouldn’t make $500. I started in the beginning of October and I make more money now than I did before the discounts. I think that between the surges and the extras that Uber gives out… It’s not so bad. I would like to see how much I would be earning if the prices went back to what they were.

#7

If you drive in hub area, paid miles are better. If you drive in outer areas, less so. I drive in the burbs. I don’t know what the precise paid mile percentage was, I was just guessing. It is what it is.

#8

fine , if your paid miles is 75% of total miles driven, then, from an IRS deduction perspective, your cost per paid mile is 1.5x the IRS deduction. the true cost is another calculation, however.

#9

Correct. My deduction is 1.5x and my cost is about .75x. That’s a great deal. But with about $2 per (rider) mile revenue I will unfortunately post a profit and will have to pay self employment tax and income tax.

#10

Whether or not you should drive sort of depends on your market in my opinion. Some cities turn into ghost towns for drivers (college towns) when the kids leave, which means you’re scraping by in fares, or giving back to back rides to drunk, rowdy kids when they’re back from break.

#11

Seems like you would be trading one low paying job for another. At least at this one, you are full time, so they are required to offer health insurance, or at least they would pay a penalty if not. Eventually, most employers will come around to offering full time staff healthcare.

#12

I do the same. Some days, it’s $4/mile, but not often enough. These days., I’m happy when it’s $1.50 and really happy when it’s $2. Uperpool and Lyft Line hit here recently, and the surge is down drastically. I’m not liking it one bit.

#13

In reality, you need to take your net income, reduce it by 20% or more, then add back in what the IRS gives you to operate your car. They’ll give you back 55 cents. In reality, you’ll probably spend about 25 cents, depending on the age and value of your car. Gas only accounts for up to 12 cents per mile in the highest cost/lowest MPG assumptions.

#14

I do not even consider dead miles, as a rule. I do count them in all my figures, but what I am looking for is for dollars per mile as my main metric. I regard it as a good day if I get a pre-expense payout (PEP) of $1.50/mile.

#15

A minimum of $1 per rolling mile is a good rule of thumb and easy to keep track of while driving. I have started to watch the dead miles better to continuously achieve this.

#16

The deduction for the business in the example creates a loss for the business that can be deducted from the other job’s income thus lowering the tax liability. The net effect is that they give me money for my miles.