No, Driving for Uber Is Not a Payday Loan

Critics vastly overestimate cost of driving a car.


Is Uber, a ridesharing company, offering well-paid, flexible employment options or taking advantage of drivers who do not understand the raw deal that they are receiving? A recent YouTube video, Why Uber Is A Scam, has over 875,000 views and claims that math proves driving for Uber is a scam—akin to taking out a payday loan. But beware of sensationalist claims—especially those that show Uber drivers somehow lose money.

Earnings differ by location, but most drivers agree that the average net wage lies between $14 and $15 dollars per hour, after accounting for Uber's fee. However, drivers provide their own cars, are responsible for fuel costs, and have to take into account vehicle maintenance and depreciation. It is difficult to estimate exactly how much drivers spend on their vehicles. But that does not stop those who oppose the sharing economy from dramatically overestimating drivers' costs in efforts to stir up outrage over Uber.

Considering that over half of Uber drivers still actively partner with the platform a year after they first started, the claim that Uber drivers lose money is laughable. But how much does it actually cost to drive for Uber?

Showing their confusion about the associated costs of driving with Uber, many commentators accept the 54 cents per mile that the IRS allows drivers to deduct from their taxes as the cost of driving. This amount drastically overstates the cost of owning, operating, and maintaining a vehicle, and assumes the vehicle is used only to drive for Uber.

To obtain a far more accurate estimate of the costs of driving, one must isolate the increase in costs attributable to the extra miles driven for Uber. In other words, people should not look at the cost of driving, for example, 10,000 miles per year. What needs to be analyzed are the costs from increasing vehicle usage from 10,000 miles per year to 20,000 miles per year.

The difference is massive.

According to AAA's 2016 report, after taking into account vehicle, maintenance, and fuel costs, driving 10,000 miles per year in a small sedan (the preferred vehicle for Uber drivers) costs an average of 57.4 cents per mile. This is a significant sum, and one that would make driving for Uber a lot less appealing. However, the benefit of Uber is that drivers usually already own and drive their vehicles non-commercially (around 13,000 miles per year on average).

The median Uber driver drives 10 hours per week. Based on this hours driven, capacity utilization rates, average speed, and passenger wait times, we estimate that average Uber drivers partner with the company for roughly 10,000 miles per year. For simplicity, let us assume that typical drivers increase their driving volume from 10,000 miles to 20,000 miles per year by deciding to partner with Uber. AAA's 2016 report and basic algebra reveal that the 10,000 additional miles cost only 16.4 cents per mile. This is a far cry from the oft-cited 54 cents a mile.

As driving volume increases, both personally and commercially, this price falls lower still. For Uber drivers working 10 hours per week and driving 10,000 miles per year, the cost of owning and operating their small sedans for the additional 10,000 miles comes to $3.15 per hour. This expenditure is far less than what is assumed by some of Uber's critics (around $15 per hour).

Of course larger cars have larger costs—the second 10,000 miles in a medium-size sedan cost 19.8 cents per mile. But even this expense is still only 37 percent of the 54 cents per mile claim. These numbers show how Uber drivers derive substantial cost advantages (in terms of cost per mile) from using vehicles that are already owned and personally driven. Uber drivers and customers all benefit from this crucial advantage.

These costs are not exact and they vary by driver and location, but our numbers offer a clear picture of what makes the sharing economy so transformative. By utilizing underused resources such as houses, vehicles, and tools, and by allowing people to monetize underused portions of their time, the sharing economy takes advantage of the significantly lower costs that come from marginally increased usage.

Instead of paying 57.4 cents per mile to operate a company-owned taxi for 10,000 miles, ridesharing drivers pay 16.4 cents per mile to operate their cars an additional 10,000 miles. Similarly, instead of paying $300 to buy a table saw, the sharing economy's platforms allow someone to rent an unused table saw on NeighborGoods at a miniscule marginal cost.

Sharing-economy services make it faster and easier for people to take advantage of productive efficiencies for the betterment of both providers and users. So no, Uber is not some new version of payday loans. Don't believe everything you see on YouTube.

NEXT: Civil Rights, Shivil Rights: Dems Wanna Shut Down Free Speech Rights of Climate Dissenters

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  1. Fuck Uber for using their platform to push gun control.

    That is all. Carry on.

    1. Wait, what?

        1. So… shoot the driver if he’s a minute late?

          1. I want Lyft and Uber fighting in the streets for my business.

        2. Too lazy to look up what charities they’re supporting, but I’d hardly say that on its face opposing generic “gun violence” is particularly damning. Hell, I oppose gun violence too when it’s not directed at someone running at me with a knife.

          1. “Gun Violence” is a dog whistle for gun control.

            1. Indeed. The term “gun violence” is a shibboleth* of the gun controllers, who want you to focus on the inanimate object to which they superstiously attach responsibility for violence.

              *literally. “A word or saying used by adherents of a party, sect, or belief and usually regarded by others as empty of real meaning.”


              1. “Fuck you, that’s why”?

      1. Totally makes sense. Who are you going to suck up to… the people who are happy to let you operate as is, or the group that’s actively trying (and succeeding) in shutting you down?

    2. Meh. Uber has free speech rights like everyone else. And we libertarians have defended people with way more egregious views than backing gun control, and this issue is a core economic liberty.

      Can’t see how this differs from gay cake. People have a basic liberty to participate in voluntary exchange, regardless of whatever other stupid beliefs they hold.

      1. Uber has free speech rights, and I have the right to seek alternatives to companies that promote fascistic ideas that I find repellent.

      2. They do indeed, as we have the right to savage them on internet forums… while hailing a ride from them.

      3. Meh. Uber has free speech rights like everyone else.

        You don’t say! Are you also going to tell us that water is wet?

        But you know what? People also have the right to criticize Uber and not engage in voluntary exchanges with them when Uber pushes a political agenda that they disagree with.

  2. I left my office-job and now I am getting paid 98 usd hourly. How? I work over internet! My old work was making me miserable, so I was forced to try something different, 2 years after…I can say my life is changed-completely for the better! Check it out what i do..

    ????? http://www.CareerPlus90.com

  3. According to AAA’s 2016 report

    Well, I didn’t read this in detail, but I have my suspicions about anything AAA produces. I’m a member & am happy to use their breakdown service. But they are one of the biggest pro-statists out there.

    1. The Hertz Gold Membership is a lie too. I got it through AAA Premiere.

      I found out that it means nothing after standing in line for 3 hours at JFK.

      1. JFK

        There’s your problem. You’re almost better off flying into Philly and driving the rest of the way.

        1. I need to go where Virgin America goes. No Philly.

          1. They used to fly into Newark. I took them out of LA once, they made being stuck on the tarmac for 3 hours an acceptable experience. As acceptable as being stuck in coach while waiting for a mechanic to fix the seatbelt of an unoccupied seat can be, anyway.

            1. I often have 3 kids with me for non-business travel.

              They’re pretty hard on VA’s entertainment gear.

      2. Even the Hertz Five Star status means nothing. I had it for a year or so, when I didn’t have a car.

      3. It means that if you reserve a car with ‘Neverlost’, six weeks in advance, when you get to the airport all they have is a Durango. And then the Neverlost didn’t work right (and yes, we did get lost, immediately).
        To their credit, they deducted the extra cost from my bill when I brought the monster back.

        1. Huh. You probably got my Durango.

  4. According to AAA’s 2016 report, after taking into account vehicle, maintenance, and fuel costs, driving 10,000 miles per year in a small sedan (the preferred vehicle for Uber drivers) costs an average of 57.4 cents per mile.

    I’m sorry. What the fuck does this have to do with anything?>

  5. Fuck Uber for using their platform to push gun control.

    Please elaborate.

      1. Uber will be making donations to a number of social justice…

        Yikes. No Uber for me.

        1. Could people opposed start paying cash to drivers?

          1. I think the way the app is structured prevents that or they wouldn’t be making much money. Just be glad you’re circumventing unions, medallion system, existing bureaucracies, etc, or see if their competitor is in your area.

          2. There easily could be an open source app that directly hooks up drivers and riders without any kind of centralized entity.

            It solves lots of problems as there is no large entity for the governments to go after.

            1. Yes, but it removes the rating system and supervision of Uber, which is arguably the most important part of the platform.

        2. You mean paying bribes to the Gods of social media …

          How much do you want to bet Uber’s doing this to get on the good side of todays online moral scolds?

  6. Who knew cabs were so near and dear to proggie hearts? All I ever heard people ride-sharing was people bitch about cabs, call cabs a massive scam, and consider the high medallion fees highway robbery.

    What is it that make proggies go so apeshit over ride-sharing? Is it the marginal loss of a public transit rider? Is it people making money in yet another way that isn’t unionizable? It’s really sort of weird.

    1. Cabs are government-controlled and a source of much cronyism and graft. QED.

      1. No, I get it, sort of, it just seems so intense and ubiquitous among a certain set. I mean get the connection between hating AirBnB and rental shortages (not that it’s true,) but the ride-sharing seems to be such a personal affront to so many.

        1. Uber’s success is evidence that people don’t need top-down regulatory control of all aspects of their lives. That contradicts the left’s worldview.

        2. I mean get the connection between hating AirBnB and rental shortages

          There are not enough faces to palm in the entire world.

    2. Who knew cabs were so near and dear to proggie hearts?

      Anyone who didn’t nap through the comprehensive Union buyout of the Democratic party.

    3. The love of regulations and unions trumps cab hatred.

    4. It’s probably because it allows ordinary people to make money in new, creative, not-invented-by-government ways.

      And that it disrupts the status quo (=gentrification).

      1. It’s is further proof that we’re not in late-stage capitalism yet. That always burns them because the Revolution is Near, if only we can get to the point where all businesses have merged into one giant corporation that the government can easily nationalize. (Voila, perfect socialism!) Every time someone creates a startup or especially invents a way for people to self-employ, that reminds them we aren’t anywhere near Marx’s (PBUH) sacred prophecy about the End of History.

        1. late-stage capitalism

          As defined by Marx.

          Does it dawn on them that Marx might be wrong on the trajectory of capitalism?

          1. Fuck no. That’s why they hated Fukuyama so much. He was taunting them with ‘The End of History’.

            1. And Fukuyama’s a dumb-ass Luddite, BTW.

    5. I think it’s mostly a desire progressives harbor to see their peons in government exert some sort of perceptible, effective control over all spheres of individuals’ lives. Publicly licensed, rigidly structured cab cartels satisfy their appetite for predomination over their neighbors’ business, whereas free and private enterprises conducting their affairs in a wholly voluntary, capitalistic manner offends their totalitarian principles.

      1. I honestly don’t think the average Bernie/Hillary voter thinks that deeply.

        1. I don’t think there is any deep thinking involved at all; the “but there’ll chaos!” belief is so deeply ingrained in our hyper-regulated society that it amounts to an animal instinct.

          1. True, they are feelz motivated.

            I mean, Gawker media has always pushed hard against ride-sharing, and Uber in particular. (I swear Denton missed out on investing at the ground level.)

            It’s just so bafflingly intense, like their worship of Beyonce.

            1. It’s just so bafflingly intense, like their worship of Beyonce.

              C’mon, Suge. Don’t tell me you didn’t know that Beyonce is a Satanist.

              Google it, for the pure entertainment value alone.

              1. Blue Ivy is Rosemary’s Baby? That actually makes a lot of sense.

              2. Google it, for the pure entertainment value alone.

                *Googles “Beyonce is a Satanist”*

                Holy shit…

              3. Nice. There has been a disappointing drop-off in Satanism in popular entertainment in recent decades.

            2. Surge pricing.

              The hatred for that seems to be the root of all hatred for Teh Uber. That and putting good, honest cabbies out of work (who will never drive again!).

              1. [Finally reads down to Rhywun’s post].

        2. No, but some policy douche does think that deeply, and they heard him quoted on Rachel Maddow saying something smug about Uber, so they parrot it to sound smart and signal their allegiance to some group.

        3. I honestly don’t think the average Bernie/Hillary voter thinks that deeply.

          “St. Bernie and Her Cankleness both say Uber is EVUL therefore it must be so!” /progtard voter

        4. And the average Bernie/Hillary voter uses Uber when convenient and doesn’t actually give a shit about Taxis unless there are points to be won in a political argument.

      2. Exactly, they are firm adherents to the ‘that which is not explicitly permitted, is verboten.’ philosophy.

    6. What is it that make proggies go so apeshit over ride-sharing?

      Surge pricing

      1. “They would rather the poor be poorer than everyone be richer!”

        1. Hmm, I butchered that quote.

          Still, that’s basically what they’re objection to surge pricing is. They’d rather nobody gets a ride, or everyone has to wait in a line, than have some people get rides by paying more for them.

          1. Yeah, that’s right in line with rhetoric I’ve heard from statists about healthcare and other issues.

          2. They’d rather nobody gets a ride, or everyone has to wait in a line

            Well, breadlines are sign of economic health according to Berntard.

      2. Why do they hate giving workers a fair wage?

        1. I mean, why do progs hate giving Uber drivers the benefit of surge pricing?

          1. Well, these are economically ignorant types who also think a guy buying generators and water, driving to a storm ravaged region, and selling them at a markup is bad.

          2. Some of these idiots probably still believe in the labor theory of value. They think that there is exactly one “fair and reasonable” price for any given good or service. The idea that a product’s value might vary based on circumstances is pretty much heresy to them.

      3. Rhywun wins the thread with the simple truth.

    7. Most progressives don’t have anything against Uber on principle. They have simply gotten their instructions from the hivemind after 8 years of championing regulations of any kind. Under Obama, that’s really what we’ve had to the point where you have progressives reflexively defending any regulation, to include occupational licensing laws, even when Obama actually says they’ve gone too far.

      Most young progressives like and would be fine using Uber the service. But they’ve been told they need regulation. It’s the talking point.

      The guys at the top directing the shit? They are the ones who benefit from the taxi cartels.

      1. I think the part I find the funniest is that the people I know who live (or used to live) in NYC who hate on ride-sharing the most were the same ones who always hailed down “town cars” to get around the city rather than use cabs. Hailing town cars (or livery drivers) is against those same regulations they now try to push on Uber.

        1. On that note, we should bring back the term “gypsy cab” to describe the current situation.

        2. On that note, we should bring back the term “gypsy cab” to describe the current situation.

        3. Don’t forget ‘Car Services’–the real competition until recently. But Car Service cars are generally scuzzy, and the offices they operate out of even worse.

          1. It may be that car services and livery cabs and “town or black cars” are all the same thing.

        4. Didn’t Uber start out largely as a service to make it easier to get a town car and to help the livery drivers keep busier?

      2. you have progressives reflexively defending any regulation, to include occupational licensing laws

        I pretty much swore off talking politics with my progtard sister when she defended occupational licensing for hair braiders and interior decorators a few years back. Not joking, unfortunately.

    8. People are making money in a way that doesn’t adhere to the employer-employee corporate model, which is bad because it can’t be regulated as easily.

      They aren’t official employees so they don’t get benefits – pension plans, health insurance and all that stuff that the government must force evil capitalists to provide their employees.

    9. Is it people making money in yet another way that isn’t unionizable?

      Winner winner, chicken dinner!

    10. Don’t you know?

      I live in tech/proggie land. They go ape shit over anything because:

      1) They’re each such a special snowflake,
      2) They have and incessant need to “feel good” about their contribution to the world and,
      3) They are the worst myopic group I can over remember.

  7. What is it that make proggies go so apeshit over ride-sharing?


    1. Pretty much this.

      What? You’re exchanging services for money outside of officially endorsed channels? WAGE SLAVERY! You’re not “free” unless your money-making relationships are constantly being monitored and regulated by the federal government – for your own good!

  8. I was just thinking that I have outgrown my table saw. Huh.

      1. Damn.

        I just realized someone should name a tool sharing app “Toober”.

      2. Being in the equipment rental business, I can see a hundred different problems with an Uber for tools, starting with liability issues and ending with theft.

        1. Maker spaces — you pay a monthly fee to have access to a lot of really expensive power tools without having to own them.

          1. Yeah, but then you have to deal with other people and not drink beer.

            1. LOL!

        2. I think you use the saw at their location. Big project kinda stuff, where you set up jigs and cut hundreds of pieces. But I didn’t click on the link, so I’m just guessing.

          1. Now, just clicked on the link. You create “communities” and then “share” stuff. Really hippie commune stuff.

            1. Hippiedom is full of con artists and thieves. It always has been.

              And I live and grew up a bridge away from Haight Ashbury and next door to Bezerkely.

  9. Sure, it’s easy to make something look like a bad deal if you add in costs that you would be paying anyway.

    Well, I would rent out my second bedroom, but studies show that my mortgage and utilities cost $1100 a month and I could only get $550 a month for the room, so I’d actually be losing money on the deal. Better not!

  10. Why do all these headlines keep answering questions I never even asked?

  11. And I get my money from bacon grease. What’s the problem?

    1. On this comment board we obey the laws of thermodynamics.

      1. That’s it! Go to your room!

  12. I’m a self employed barber and have to make X amount before I keep a dime after taxes.The left is used to their employer picking up the cost of doing business. It costs money to make money..

    1. I start to get paid on Wednesdays.

      1. Same here,but I don’t work Sun and Monday.

      2. That when your Koch checks get deposited?

        1. They told me it’d be biweekly, but I haven’t gotten mine in the mail yet…

    2. Oh, that reminds me, I need to go get a haircut today.

  13. The progressives are once again arguing that people are too stupid to do even basic math. Uber drivers can’t figure out their own operating costs and determine whether they are profiting. No, a report using a completely unrelated figure from the IRS or AAA will scientifically show they are rubes who need the kind and benevolent hand of government.

    1. I’ve done the math, and almost went and leased or bought a Kia or hyudia. I’d make a little more than I do now, if I worked about full time.

      1. If you want to try it they will lease you a car that you can turn back in if you don’t like driving Uber.

        I was told it only requires a $250. deposit.

        1. That’s actually not bad.

    2. The basis of a lot Progressive arguments are that people are too stupid to make decisions for themselves.

      1. See drugs, social security, school choice, food laws

        1. Well, as a 5%er financial wizard, I’ve got to agree about social security.

          Since the fall of the traditional, defined benefit pension plan and it’s subsequent replacement with the voluntary, defined contribution plan, I have to admit that, even when you put gold plated opportunity in front of people, most are just too financially ignorant to take advantage of it.

          On the other hand, social security is anything but.

          And guess what? People who won’t pony up for their defined contribution plan tend to be big supporters of the social security concept. After all they regularly tell me, it’s government guaranteed. They aren’t going to let anything happen to it.


      2. “A lot”? I’d say nearly all. In Progtopia, all good things are mandatory, and all bad things are forbidden, and only Top Men can be trusted to know what is good or bad. The only decisions that you, the little people, will be burdened with are those that make no difference at all.

    3. No, a report using a completely unrelated figure from the IRS or AAA will scientifically show they are rubes

      Well, progressives do “Fucking Love Science!”

      1. No, no, they “Love fucking science!” Science cries rape.

  14. Driving for Uber is not like a payday loan — it’s like a reverse mortgage.

    The 57.5-cent standard mileage allowance (drivers can of course opt for their actual expenses) includes a depreciation component — currently 23 cents per mile.

    Now, if you car has no trade-in value, or you are reasonably certain that you will ultimately drive it into the dust, then that 23 cents per mile is a de facto targeted tax break — and we libertarians just LOVE targeted tax breaks, right?

    But if the car is ultimately disposed of (sold, traded in, etc.) then that accumulated depreciation must be “recaptured” in the form of a higher capital gain and in essence much, or even most of what the driver has done is borrow interest free against the equity in the vehicle — it is not “earned money” in either the tax or the libertarian sense.

    1. Because not taking is giving?

    2. Is the mileage allowance refundable? I would think not. You can’t deduct more than you make, and you can’t deduct more than about $28,000 (~50,000 miles) per automobile. That might substantially reduce, but won’t eliminate, your tax burden. You’re not borrowing anything, in any sense. Maybe the amount of the depreciation portion of the allowance should be based on the car’s value, but the whole point of the allowance is to avoid computing the depreciation.

      1. There is a lesser allowance for fully depreciated vehicles.

        Don’t make me go look up the particulars! 8-0

    3. And as far as “targeted tax breaks” go, this one is pretty broad. Any vehicle operated for business purposes qualifies. It’s hardly specific to Uber or ride-sharing in general. You’re veering into “any tax break not given to absolutely everyone is a handout” which is a bit dense.

    4. I might be wrong, but I thought they were using that figure as a rough approximation of the cost of driving a car for a mile. As in, if you aren’t getting paid more than that from Uber, then you have a net loss.

      1. Hmm, that means if you were to keep meticulous records, the money you make driving for Uber would be effectively tax free.

        Maybe we’ve figured out why the proggies hate Uber so much.

        I’m starting to like this idea more and more.

  15. RE: No, Driving for Uber Is Not a Payday Loan
    Critics vastly overestimate cost of driving a car.

    The critics are right to criticize Uber. This company is not regulated by our obvious betters and deserve all the pain and punishment set forth by our benevolent socialist slavers. It is only through regulation, red tape, laws, unnecessary rules, etc. can a company be free and independent of the horrors of capitalism and the freedom it brings.
    Why this has to be said time and again is beyond anyone’s reasonable thinking process.

  16. Don’t believe everything you see on YouTube.

    So HM’s twerking videos aren’t real?

    1. Define ‘real’

    2. They’re real videos.

  17. Let’s give credit to where credit is due.

    Roughly 37% of the thumbs were voted down in this video. That is a substantial percentage of people with experience (or just common sense).

    There is still hope in this country.

    1. “Yay! A sizeable minority of our fellow citizens aren’t complete idiots, yet! Libertarian moment!”
      You look and see a glass less than two thirds stupid, I see a glass over half moronic.

  18. I actually drive Uber/Lyft part time in my city, and I make PLENTY of profit. Already paid for the total cost of my vehicle more than twice over, soooo hard to not come out there… Caveats: 1. I drive a minivan (which I bought largely for doing this after researching online and running the numbers) which pays twice as well per mile as a regular car for doing bigger group rides 2. I also live in one of the best cities in the country for doing Uber/Lyft based off of the rates here.

    That said after gas, but before maintenance, I usually net $25-30 an hour on Fridays and Saturdays, which is all I do. I bought an older, but fairly low mileage, minivan because it has already depreciated about as much as possible… But still isn’t into the super expensive maintenance stage of its life yet. AKA it’s the perfect type of vehicle to do this with. The same rules would apply if you wanted to drive a Prius. You want one that’s already 6-8 years old, a smidge over 100K on the clock, and has been reasonably well maintained.

    I haven’t re-run the numbers lately, but a couple months back after a few decent repair bills (new (upgraded!) brakes all around and other odds and ends) I was at almost $4 an hour in expenses… Then I’ve had months of basically no maintenance. It’s probably well under $3 an hour at this point. So probably $22-27 an hour after all expenses.

    1. Not bad for a slacker side gig. ALSO since my real costs are far lower than the deduction, I’m actually gaming the IRS on taxes by having it artificially lowered. Hell yea!

      If you had an older Prius instead of a minivan you’d have way lower gross income than me of course, but the maintenance costs would be lower, you’d spend 1/3 on gas, and you’d still have close to zero depreciation. Sooo I can’t see how anybody doing this RIGHT would be anywhere close to the stupid figures these morons throw around, even in lesser markets than mine.

      IF you are dumb enough to drive a brand spanking new car, that gets mediocre gas mileage, and be doing it in a bad market you COULD come out not so good… But anyone with sense should know that. Nobody would drive a 1 ton pickup truck doing this right? Cuz that’s dumb, because gas mileage… Everyone would conceded that. So the same thing applies to a lot of other vehicles due to depreciation/mileage etc, but just because someone doing it as wrong as possible doesn’t come out well, that doesn’t mean the whole thing is a scam. I think it’s sweet for side cash and I just have a big “WTF” everytime I see some news article about how it’s a scam. It’s only bad if you do it as wrong as possible. Even with a 4 year old car, that gets decent (but not Prius) mileage you should come out ahead no problem.

      1. “But anyone with sense should know that.”

        What, what, what? You mean I can’t just do whatever fits my fancy and have a guaranteed profit? What are you? Some kind of 1%er or something.

        We all know the government has to step in and keep me in “livable wages” whether I’m weaving baskets or coding the next Pokeyman. Or flashing trash a al Kartrashian. 😉

  19. Garbage Uber-paid hit piece.

    Author is marginalizing driver costs in Uber’s favor.
    They are manipulating numbers and trying to push the bulk of the business operational costs onto the driver’s personal use and that is garbage.

    Check out the 2016 AAA study and they are applying it incorrectly here.
    You do not apply the costs in the way they described. if total mileage is 20K for a medium sedan, then the first and second 10K miles are multiplied by the same amount: $0.478 per mile.
    Not the first 10K by that amount and the second 10K by $0.164… they are doing their math wrong.

  20. The writer of this article should be prosecuted for helping Uber continue to lie to the public about driver pay and expenses. There are thousands of UberX drivers out there getting suckered by Uber’s lies and nobody is doing anything about it. If you are going to write for a quality publication you should at least make an effort to tell the truth.

  21. The first mistake the author makes is trying to identify ‘average’ costs of the ‘average’ driver. While those numbers might be useful for data analysis, they are meaningless to real people – as no one is ‘average’. All those numbers mean is that most people do NOT meet those numbers.

    The second mistake the author makes is using 10,000 miles as the ‘average’ miles driven by a part-time driver for which the driver earns compensation. Nothing could be further from the truth. If the 10,000 miles/yr number is actual miles driven in rideshare pursuit, then that means the driver was compensated for only ~5,000 miles – since the ‘average’ driver must drive 2 miles to get paid for one mile. If the 10,000 miles number used by the author is compensated miles, then the actual expense incurred by the driver is twice that of the number the author states – again, because the driver actually drives ~2 miles to get paid for 1 mile.

    The fact is that with hundreds of thousands of drivers involved in TNC driving in the US – maybe millions – there is ‘average expense’, and the actual expense per mile to each driver is unique, based on their own particular circumstances. For the author of this article to calculate what is an incredibly optimistic expense per mile based on the most advantageous circumstances and then claim that is the ‘expense number’ that should be used to evaluate profitability for all drivers is simply disingenuous.

    1. >>> The fact is that with hundreds of thousands of drivers involved in TNC driving in the US – maybe millions – there is ‘average expense’,

  22. >>> The fact is that with hundreds of thousands of drivers involved in TNC driving in the US – maybe millions – there is ‘average expense’, … ugh – the editor here is parsing they typo I’m trying to correct. That sentence shoul dhave read: The fact is that with hundreds of thousands of drivers involved in TNC driving in the US – maybe millions – there is NO ‘average expense’…


  23. I disagree. I don’t think that Uber is a scam. However, I understand that the video contains true facts. But every driver must understand all the risks and make a decision for himself. When you work as a driver, you’re the only one responsible for your car and the necessary service for it. That’s why you should understand if the job will bring you money and profit or it doesn’t make sense and you will need same day payday loans to pay for the car service. Uber gives an opportunity to make money, that’s it!

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