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To make what Uber claims, you'd have to drive 27 hours a day, 365 days a year

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To make what Uber claims, you'd have to drive 27 hours a day, 365 days a year

Old 05-12-15, 12:41 PM
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To make what Uber claims, you'd have to drive 27 hours a day, 365 days a year

Uber claims its drivers make $90,000 a year, but someone who actually tested that claim says you'd have to drive 27 hours a day, 365 days a year to make that much.


http://www.businessinsider.com/uber-...arnings-2015-5

A Philadelphia journalist went undercover as an Uber driver here's how much she made

May 8, 2015

Last year, Uber claimed its full-time New York City UberX drivers were making a median wage of about $90,000 a year.

Drivers responded by telling Business Insider's Maya Kosoff that they were often making less than minimum wage, with yearly earnings in the range of $10,000 to $41,000.

When UberX arrived in Philadelphia, Emily Guendelsberger, a senior staff writer at the Philadelphia City Paper, became curious about how much drivers would make.

So in January, she went undercover.

In an article in the Philadelphia City Paper, she explains that on her first trip as a driver, the money looked good:

"As I let him off at 30th Street Station, he waves goodbye and thanks me, and says he's rating me five stars. The fare pops up on my phone: $10.85. The price of almost two beers for 15 minutes of driving! And if my neighbor had taken a cab, with tip, it would have been an even $20."

But in the long run, Guendelsberger found that the numbers didn't add up. One reason was Uber's massive fare cut, which took place just before she started driving. And since UberX drivers aren't licensed with the company and use their own cars, expenses such as insurance and gas add up, while the car's value depreciates.

Over the course of 100 rides, her hourly rate averaged out to $17. But after subtracting the 28% cut that Uber takes and 19% for car-related expenses, her actual pay ended up being $9.34 an hour.

She writes:

"Driving for UberX isn't the worst-paying job I've ever had. I made less scooping ice cream as a 15-year-old, if you don't adjust for inflation. If I worked 10 hours a day, six days a week with one week off, I'd net almost $30,000 a year before taxes."

"But if I wanted to net that $90,000 a year figure that so many passengers asked about, I would only have to work, let's see ..."

"27 hours a day, 365 days a year."


Though Guendelsberger concludes that Uber's business model isn't good for drivers, she admits that passengers benefit from the company's massive growth.

Not only is the service better than with traditional taxi companies, but the prices are generally lower, too.

"Whatever my reservations about Uber as a driver, it really, really is better for riders," she writes.
Old 05-12-15, 12:56 PM
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Re: To make what Uber claims, you'd have to drive 27 hours a day, 365 days a year

Philadelphia != New York

And when you drive during surge times your rates go up dramatically.
Old 05-12-15, 01:06 PM
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Re: To make what Uber claims, you'd have to drive 27 hours a day, 365 days a year

Uber's claim also didn't take into account the nearly 20% this author excludes for auto costs.
Old 05-12-15, 01:19 PM
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Re: To make what Uber claims, you'd have to drive 27 hours a day, 365 days a year

I drive an old Hummer H2 as an Uber driver in Milwaukee and I lose $5 every time I get stopped at a red light. Uber is sooooo full of it!
Old 05-12-15, 01:53 PM
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Re: To make what Uber claims, you'd have to drive 27 hours a day, 365 days a year

Originally Posted by mndtrp View Post
Uber's claim also didn't take into account the nearly 20% this author excludes for auto costs.
And I believe you can deduct all of those expenses on your income tax.

That's not to say the author is wrong. I do think there is something fishy about uber and I don't think it can sustain itself.
Old 05-12-15, 01:55 PM
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Re: To make what Uber claims, you'd have to drive 27 hours a day, 365 days a year

I guess I should have added, I don't believe Uber's claim at all. The author just shouldn't use criteria that Uber itself doesn't use.
Old 05-12-15, 03:52 PM
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Re: To make what Uber claims, you'd have to drive 27 hours a day, 365 days a year

I guess the only real solution is to just work 27 / 365... duh
Old 05-12-15, 04:05 PM
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Re: To make what Uber claims, you'd have to drive 27 hours a day, 365 days a year

Who works for Uber full-time? Isn't it supposed to be a side thing to earn extra money?
Old 05-12-15, 04:22 PM
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Re: To make what Uber claims, you'd have to drive 27 hours a day, 365 days a year

My prediction. All it's going to take is one Uber driver turning out to be a psychopath or serial killer for this company to bite the dust. The peer to peer idea will be their downfall.
Old 05-12-15, 04:24 PM
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Re: To make what Uber claims, you'd have to drive 27 hours a day, 365 days a year

Originally Posted by cungar View Post
My prediction. All it's going to take is one Uber driver turning out to be a psychopath or serial killer for this company to bite the dust. The peer to peer idea will be their downfall.
that hasn't hurt craigslist
Old 05-12-15, 05:05 PM
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Re: To make what Uber claims, you'd have to drive 27 hours a day, 365 days a year

Originally Posted by RoyalTea View Post
that hasn't hurt craigslist
You don't have to crawl into your Craigslist buyer's car to make a sale and people are becoming more cautious. Meeting in parking lots etc.

I was halfway serious but I seriously think there's a big problem with letting any Joe Schmoe pick you up and drive you around. I'd never do it, especially with my family.
Old 05-12-15, 08:39 PM
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Re: To make what Uber claims, you'd have to drive 27 hours a day, 365 days a year

Originally Posted by cungar View Post
My prediction. All it's going to take is one Uber driver turning out to be a psychopath or serial killer for this company to bite the dust. The peer to peer idea will be their downfall.
I can't imagine using Uber for that very reason. Maybe when traveling in a group.
Old 05-12-15, 10:38 PM
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Re: To make what Uber claims, you'd have to drive 27 hours a day, 365 days a year

Originally Posted by cungar View Post
My prediction. All it's going to take is one Uber driver turning out to be a psychopath or serial killer for this company to bite the dust. The peer to peer idea will be their downfall.
Agreed, or pretty close. And, oh yes, a 28% cut + no reimbursment for wear and tear or gas expense (and, probably no tip, either), is massive greed!

You'd probably do better taking the government mileage rate off your taxes. What is it? Something like $0.57 per mile now?
Old 05-12-15, 10:40 PM
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Re: To make what Uber claims, you'd have to drive 27 hours a day, 365 days a year

Originally Posted by cungar View Post
You don't have to crawl into your Craigslist buyer's car to make a sale.
Well fuck now you tell me. Was the blowjob also optional?
Old 05-12-15, 10:50 PM
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Re: To make what Uber claims, you'd have to drive 27 hours a day, 365 days a year

Originally Posted by Double_Oh_7 View Post
Who works for Uber full-time? Isn't it supposed to be a side thing to earn extra money?
You mean like working at McDonalds?
Old 05-14-15, 04:51 AM
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Re: To make what Uber claims, you'd have to drive 27 hours a day, 365 days a year

I used Uber for the first time while visiting a strange city alone late at night and did not get murdered so I'd use them again.
Old 05-14-15, 07:55 AM
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Re: To make what Uber claims, you'd have to drive 27 hours a day, 365 days a year

Originally Posted by cungar View Post
You don't have to crawl into your Craigslist buyer's car to make a sale and people are becoming more cautious. Meeting in parking lots etc.

I was halfway serious but I seriously think there's a big problem with letting any Joe Schmoe pick you up and drive you around. I'd never do it, especially with my family.
I used them dozens of times. My worse experience with Uber was 100x safer and better over all the the best experience with a taxi.

Uber is fantastic. I highly recommend them. But I admit the ONLY reason they succeed as much as they have as quickly as they have is that taxi's suck so much.

And BTW both my kids (over 21) I have set up Uber accounts for them. With my credit card. To use in an "emergency". I'd trust Uber as much as a taxi, or public transportation.
Old 05-14-15, 07:56 AM
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Re: To make what Uber claims, you'd have to drive 27 hours a day, 365 days a year

I used Uber a lot while working near Philly. Wonder if she was a driver for me?
Old 05-14-15, 08:01 AM
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Re: To make what Uber claims, you'd have to drive 27 hours a day, 365 days a year

I don't understand the hatred for the surge pricing.

If I'm a part-time Uber driver and it's snowing on NYE, am I going to get in my car to pick up fares for normal prices, or am I going to go out and do something fun with my friends? But with "surge pricing" if it's snowing on NYE and that means I can make a shitload more money, then I'm getting out in my car to drive people around.

Why is it so horrible to charge more during periods of high demand and/or low supply?
Old 05-14-15, 09:07 AM
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Re: To make what Uber claims, you'd have to drive 27 hours a day, 365 days a year

Originally Posted by RoyalTea View Post
I don't understand the hatred for the surge pricing.

If I'm a part-time Uber driver and it's snowing on NYE, am I going to get in my car to pick up fares for normal prices, or am I going to go out and do something fun with my friends? But with "surge pricing" if it's snowing on NYE and that means I can make a shitload more money, then I'm getting out in my car to drive people around.

Why is it so horrible to charge more during periods of high demand and/or low supply?
I don't hate it, but don't like. It "feels" a little like charging more for plywood after a hurricane. Tho getting an Uber rides isn't generally a necessity. So, as long as up front and everyone knows the pricing
Old 05-14-15, 09:40 AM
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Re: To make what Uber claims, you'd have to drive 27 hours a day, 365 days a year

I don't understand the hatred of charging more for plywood after a hurricane. Would you rather go to the hardware store and see that plywood costs more or go to the hardwood store and see that plywood costs the same, but there's no plywood left in stock?
Old 05-14-15, 10:03 AM
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Re: To make what Uber claims, you'd have to drive 27 hours a day, 365 days a year

I don't "hate" the surge pricing, but I do worry that it will encourage people to drive instead of calling for a ride when they are intoxicated during surge periods (such as New Years Eve).
Old 05-14-15, 11:36 AM
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Re: To make what Uber claims, you'd have to drive 27 hours a day, 365 days a year

Originally Posted by Groucho View Post
I don't "hate" the surge pricing, but I do worry that it will encourage people to drive instead of calling for a ride when they are intoxicated during surge periods (such as New Years Eve).
Isn't it still cheaper than a cab? That would be like claiming that cabs will increase drunk driving, and I'd think the opposite is more likely.
Old 05-14-15, 11:53 AM
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Re: To make what Uber claims, you'd have to drive 27 hours a day, 365 days a year

Originally Posted by cungar View Post
My prediction. All it's going to take is one Uber driver turning out to be a psychopath or serial killer for this company to bite the dust. The peer to peer idea will be their downfall.
Seriously. It sounds like the dumbest idea ever. Especially in NYC where you take a step to the left and put your hand up for a taxi.
Old 05-14-15, 12:17 PM
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Re: To make what Uber claims, you'd have to drive 27 hours a day, 365 days a year

Originally Posted by CRM114 View Post
Seriously. It sounds like the dumbest idea ever. Especially in NYC where you take a step to the left and put your hand up for a taxi.
It depends on where in NYC you are and what time of day it is.
(And also what color your complexion is).
I use Uber all the time, both in Chicago and in DC. If I'm leaving a bar, or restaurant, or my friend's 1500-unit condo compelx in West Loop with a cab stand right outside, then I'll hop in a cab and not bother with Uber. But if I'm leaving my condo on a residential street three blocks away from a major intersection, it's a hell of a lot easier for me to use Uber than to try to call a cab. This is particularly true because the cab companies in Chicago are super craptacular. The last time I called a cab in Chicago -- and this was Fall 2014, so well after Uber was established as a competitor -- they left me on hold for 5 minutes, then promised me a cab in 20 minutes -- a cab which never came because they "couldn't find a driver," not that they bothered to call me back to tell me that.

And yes, there could be a psychopath, but a psychopath could also get hired by Yellow Cab. Both Uber and Yellow Cab do background checks on their drivers.

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