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A Closer Look at UBER's $5000 Guarantee Reveals Ugly Truth.

Simulacra

Member
Hello brothers and sisters,

I believe that this topic deserves its own thread.

We all know UBER offers a $5000 guarantee in fares during your first month.

BUT, they fail to mention that this is before deducting the COSTS involved.

Here's a breakdown. (Approximate vales)

RENT: $60 per day
FUEL: $50 per day
UBER FEE: 20% of your earnings

Let's start by substracting 20% UBER FEE:
$5000 - 20% = $4000


Let's minus the rent now:
1 day rent: $60
4 weeks rent: $60 × 28 = $1680
$4000 - $1680 = $2320


Now minus fuel cost:
1 day fuel: $50
4 weeks fuel: $50 × 28 = $1400
$2320 - $1400 = $920


And your $5000 guarentee is left with $920.


Amount you make daily:

$920 ÷ 28 = $32.86 daily


Amount you make hourly (12 hour work day):
$32.86 ÷ 12 = $2.74/hr


The UBER $5000 guarantee doesn't seem so attractive now right?

Bear in mind that ERP charges on your way to pick up passengers and your daily parking are NOT included yet.

This is the predicament you will be getting yourself into - if you ever decide to pop by LION CITY RENTALS (or any other car rental business) to sign up.

And to make matters worse. You will have to get stuck with paying rent for 5 weeks.

Don't expect LCR to show you any sympathy. Dealing with regretful UBER drivers is business as usual for them.


 
Last edited:

Hang Yong

Active Member
Bro.... I think you have to edit the post...

not only LCR... it should be ANY rental company

also, ERP charges when rider is in the vehicle is charged to the rider...

all in all... its still a bad deal... and I guess above does not make a big difference. But just to set the records right... maybe you want to edit your post.
 

renyeo

Well-Known Member
Moderator
$60 per day for a 9-year old 1.5-1.6 liter car is daylight robbery. Soaring used car prices are partly to blame for this, but then it's because everyone jumps on and wants a seat on the (wobbling) ridesharing wagon.

Warren Buffett — 'Be Fearful When Others Are Greedy and Greedy When Others Are Fearful'.
 
Bro.... I think you have to edit the post...

not only LCR... it should be ANY rental company

also, ERP charges when rider is in the vehicle is charged to the rider...

all in all... its still a bad deal... and I guess above does not make a big difference. But just to set the records right... maybe you want to edit your post.
ERP is indeed charged into the fare if the rider is in the car BUT this figure is also INCLUDED INTO the $5000 guaranteed fare! Sneaky Uber!
 

stevewish

Active Member
My friend rents a 2.4 camry. The weekly rental is $540 work out to be about $78 per day. The worst is fuel consumption, not less than $80 dollar per day.
How is he going to earn? really doing charity work everyday! sigh
 

Simulacra

Member
  • Thread Starter Thread Starter
  • #8
My friend rents a 2.4 camry. The weekly rental is $540 work out to be about $78 per day. The worst is fuel consumption, not less than $80 dollar per day.
How is he going to earn? really doing charity work everyday! sigh
Sounds rather depressing.

A reminder to aspiring Uber drivers - to recognize that this is a Sure-Loss game.

Don't get yourself into this mess. You will end up losing hard earned money and precious time.
 

Simulacra

Member
  • Thread Starter Thread Starter
  • #9
Warren Buffett — 'Be Fearful When Others Are Greedy and Greedy When Others Are Fearful'.
Nice quote brother Renyeo. It makes a lot of sense. Thank you for sharing this. It gives a bigger perspective on life.
 

Simulacra

Member
  • Thread Starter Thread Starter
  • #10
Hi brothers and sisters,

Are there anyone who has an alternative view on this $5000 guarantee?

I hope to engage in a conversation, for aspiring drivers to have a well rounded view of this guarantee.
 
The $5000 guarantee is not easy to achieve with such terms and conditions.
The rideshare company can easily manipulate their system to throw jobs to the new driver during his first month so that they could fulfill their "guarantee". Can this be sustained for the following months?
 

Simulacra

Member
  • Thread Starter Thread Starter
  • #12
The $5000 guarantee is not easy to achieve with such terms and conditions.
The rideshare company can easily manipulate their system to throw jobs to the new driver during his first month so that they could fulfill their "guarantee". Can this be sustained for the following months?
A very good question indeed.

If memory serves, pings become sparse starting from the 5th week.

And if the first 4 weeks are even profitable with a good amount of pings, it's easy to see that the 5th will be a lot more hellish.
 
I think this is the reason why I hate uber so much after driving for them for a month. In their ads they promised that you can "earn $5000 in your first month", if not they will top up the difference ... But what they didn't tell me is that this $5000 is in gross fare taken in by me!

I did achieve the $5k in my 1st month. They didn't even need to top up a single cent for me. But after deducting $2k rental, $1k petrol, about $400 of charged ERP (yes it's included intointo the fare), and last but not least the 20% commission $1k they took from me.... I'm left with... Well you do the math. Now that's my REAL earnings!
 

Simulacra

Member
  • Thread Starter Thread Starter
  • #15
I did achieve the $5k in my 1st month. They didn't even need to top up a single cent for me. But after deducting $2k rental, $1k petrol, about $400 of charged ERP (yes it's included intointo the fare), and last but not least the 20% commission $1k they took from me.... I'm left with... Well you do the math. Now that's my REAL earnings!
It's sad.

Many of us went through the same.

Made 5k.

12hr work days
No rest

But earned less than 1k in reality.
 

Waitingtogetaping

Active Member
Be happy bro simulacra, you are not alone. :smiles:

Compare uber with GC, I still got long way to endure with GC's 3 months contract. Trying hard everyday to put on my smile during work even when i know this is not going to work out for me.

Today it's my first time that I got a 1 star rating from a customer (local who claims she used a lot of taxi & GC but never been asked to pay toll charges before..Lololol) because of toll charges. There wasn't any heated arguments but the next moment i realized i have been played by her. lol... Seriously, how cheapskate can these people go. Pretend to be unaware of the need to pay extra for ERP on top of fares. Ugly!

My last customer of the day did it again to made my day, she booked for uber & grab concurrently. I was lucky to arrive first, overheard the other driver asking her on pick up location when she already left in my car, phew... Lucky me. :wink:

Drive safe all, cheers.
 

Simulacra

Member
  • Thread Starter Thread Starter
  • #17
Hu brothers and sisters,

Please give this thread a read to understand the false guarantee better.
 

Harriston

Active Member
Thank you, Simulacra, for the clear explanation of the so called $5,000 guarantee.

This information really needs to be made known to potential drivers.

However, many of them don't know about this forum until they sign up.
By then, it's too late for them to get out of the 5-week hell.
 

Simulacra

Member
  • Thread Starter Thread Starter
  • #19
Thank you, Simulacra, for the clear explanation of the so called $5,000 guarantee.

This information really needs to be made known to potential drivers.

However, many of them don't know about this forum until they sign up.
By then, it's too late for them to get out of the 5-week hell.
Hello brother Harriston,

True that.

Although... I'm certain that many have read us and had a disaster averted.

The math speaks for itself.

To aspiring uber or grabcar drivers, be advised...

Have a look at the math before calculating how much you can earn.

You'll see why uber and grabcar drivers have much regret.
 

jeremy86

New Member
lol im earning 1.8k after uber fees - $500 rent and $300 petrol i still have 1 k a week .
and im driving only the peak hours.
 
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