Costs and Earnings: The Real World of Rideshare.

I was responding to a thread in Los Angeles, but I think this is generally useful information, and applies to all markets though ertainly the actual numbers are going to vary based on region. In Los Angeles, gas is often over $4 a gallon, and insurance rates are among the highest in the nation.

Nevertheless, there are some sobering realities. Among them that you need a car that is mostly depreciated, and you need to keep costs as low as possible which means doing all your own work. And most important of all is kepping your deadmiles (unpaid miles, such as going to pick up a passenger) to an absolutely minimum.

Nothing kills your profits more than deadmiles, not to mention using a new car.

I see drivers driving new Dogde chargers, and guess what? they are losing about 30 cents for every miles they drive Uber. I talk to driver who don't get itthat they ust can;'t be "driving around" without being paid for those miles. And when you get a really long ride, you might think that's great — but if you deadmile all the way back? Then you are making close to ZERO.

THE MATH, BROKEN DOWN AND MADE EASY

Car should be 10 years old at purchase — $10K max, even that is a bit high. $8K I think is a sweet spot.

Should be hybrid — I have a Camry Hybrid. 30mpg+ is the goal. IF you have a non-hybrid that does that well in city traffic, that's okay. But 30mpg is really a minimum.

Do your own work. "YourDream Garage" in Baldwin Hills has lifts you can rent fo $25/hour with all the tools you need. Pay for the VIP in advance ($250) as it gives a number of discounts and free hours.

Maintenance costs are hard to estimate, who knows what can go wrong? But I'll tell you this: if you have a Toyota Hybrid, expect to be doing total rear brake replacements more often than you expect, including the calipers. At Autozone, I got pads, rotors, calipers for the rears total parts cost about $450, and two hours at YDG so total was about $500 doing it myself. If you go to Midas or some other rip off joint it's gonna be $1000. This is the SECOND TIME I've done the brakes in 55K miles, but first time I've done the calipers. First job was pads and rotors only.

Tires: Costco and wait for the sale on Michelins AND the Costco free install sale (happens for a month just twice a year I think).

Insurance: Statefarm has a good rideshare add on. But Mercury is cheaper. Nevertheless, Statefarm is aggressive in defending you in subrogation when you get hit. And you WILL get hit.

Oh yea, own a daskcam. $85 for Viofo A119. Get it and thank me later. A dash cam is not optional, seriously — you'll need it when a cop hassles you illegally as well.

BASIC MATH

Assuming:

  • a 10K car with 80K miles,
  • Gas @3.90, 30mpg,
  • self maintenance
  • Good insurance with rideshare
  • Car wash twice a month
  • driving 25K miles a year:

PER MILE:

Depreciation: .08
Gas: .13
Oil: .012
Tires: .01
Maintenance: .018
Car Washes: .01
Insurance: .11

TOTAL: 37 cents a mile.

Selling my soul to Uber: Priceless.

This last line is not a joke. Because my above costs, and everyone else's you read here, is missing the most important thing OUR TIME.

It is 37 cents a mile PLUS my time. If you want to say your time is only running when you are driving and you average 3 minutes per mile, and minimum wage in LA is 14.25 an hour, then that is nearly 72 cents a mile.

Thus your actual average operating cost per mile to BREAK EVEN with you making minimum wage is

$1.09 a mile

Uber pays $1.23 a mile for a 3 minute mile. Assuming that you can keep your deadmiles down to 0.5 deadmiles for every paid mile (which is actually pretty hard to do), then your actualized per mile pay from Uber is $0.82 a mile.

That's $9 an hour folks. Welcome to the gig economy.

-------------------

The Practical Reality

I have talked to enough drivers to know they don't get the deadmile issue, and they have deadmile ratios of 1:1 and as should be obvious, they are making about a third of minimum wage. LOL.

To exactly make minimum wage, your deadmile ratio needs to be 0.12:1 or put another way:

If it is 1 mile to pick up the passenger, then that ride must be at least 9 miles.


If you aren't making that minuscule deadmile ratio, then you are making less than minimum wage.

This is not a job. This is being assaulted by corporate greed. And still Uber is losing billions a year - they lost 7.6 BILLION last year.

$7,600,000,000.00 — how do you lose that? Every year???
Like "hey honey, where did ai put that 7.6 billion? was it in the mattress?"

It's not sustainable, and these companies are going to go away if they don't realize that they can't keep treating people this way. They are relying on people not being able to do math, but even so the attrition rate for 6 months is 97%.. after 6 months, 31 out of 32 drivers QUIT. Gosh wonder why?
 

Comments

Should be hybrid — I have a Camry Hybrid. 30mpg+ is the goal. IF you have a non-hybrid that does that well in city traffic, that's okay. But 30mpg is really a minimum.
All that stuff is "nice to have."

But if you really do the math, you'll see that your hybrid might be saving you a couple of cents per mile over my SUV. Maybe even a nickel or more.

My gas costs are about 10 or 12 cents per mile.

Does it add up? Sure it does. It's better than buying a different car, though.

Saying it's "a minimum" is kind of going overboard.
 
Great breakdown.

With the exception to a few I believe most of us do this part time as a side hustle to subsidize a primary income. With that in mind, driving in the short term is a benefit to me because I am not driving this car until its last limbs of km. This break down definitely applies to all of us but more so those who are working, living and breathing through uber as there principle income.

For those that are looking doe a quick honest buck without any strings attached then this is a great short term approach. The time:money ratio does suck though. You would nailed that spot on with your math though.
 
I was responding to a thread in Los Angeles, but I think this is generally useful information, and applies to all markets though ertainly the actual numbers are going to vary based on region. In Los Angeles, gas is often over $4 a gallon, and insurance rates are among the highest in the nation.

Nevertheless, there are some sobering realities. Among them that you need a car that is mostly depreciated, and you need to keep costs as low as possible which means doing all your own work. And most important of all is kepping your deadmiles (unpaid miles, such as going to pick up a passenger) to an absolutely minimum.

Nothing kills your profits more than deadmiles, not to mention using a new car.

I see drivers driving new Dogde chargers, and guess what? they are losing about 30 cents for every miles they drive Uber. I talk to driver who don't get itthat they ust can;'t be "driving around" without being paid for those miles. And when you get a really long ride, you might think that's great — but if you deadmile all the way back? Then you are making close to ZERO.

THE MATH, BROKEN DOWN AND MADE EASY

Car should be 10 years old at purchase — $10K max, even that is a bit high. $8K I think is a sweet spot.

Should be hybrid — I have a Camry Hybrid. 30mpg+ is the goal. IF you have a non-hybrid that does that well in city traffic, that's okay. But 30mpg is really a minimum.

Do your own work. "YourDream Garage" in Baldwin Hills has lifts you can rent fo $25/hour with all the tools you need. Pay for the VIP in advance ($250) as it gives a number of discounts and free hours.

Maintenance costs are hard to estimate, who knows what can go wrong? But I'll tell you this: if you have a Toyota Hybrid, expect to be doing total rear brake replacements more often than you expect, including the calipers. At Autozone, I got pads, rotors, calipers for the rears total parts cost about $450, and two hours at YDG so total was about $500 doing it myself. If you go to Midas or some other rip off joint it's gonna be $1000. This is the SECOND TIME I've done the brakes in 55K miles, but first time I've done the calipers. First job was pads and rotors only.

Tires: Costco and wait for the sale on Michelins AND the Costco free install sale (happens for a month just twice a year I think).

Insurance: Statefarm has a good rideshare add on. But Mercury is cheaper. Nevertheless, Statefarm is aggressive in defending you in subrogation when you get hit. And you WILL get hit.

Oh yea, own a daskcam. $85 for Viofo A119. Get it and thank me later. A dash cam is not optional, seriously — you'll need it when a cop hassles you illegally as well.

BASIC MATH

Assuming:

  • a 10K car with 80K miles,
  • Gas @3.90, 30mpg,
  • self maintenance
  • Good insurance with rideshare
  • Car wash twice a month
  • driving 25K miles a year:

PER MILE:

Depreciation: .08
Gas: .13
Oil: .012
Tires: .01
Maintenance: .018
Car Washes: .01
Insurance: .11

TOTAL: 37 cents a mile.

Selling my soul to Uber: Priceless.

This last line is not a joke. Because my above costs, and everyone else's you read here, is missing the most important thing OUR TIME.

It is 37 cents a mile PLUS my time. If you want to say your time is only running when you are driving and you average 3 minutes per mile, and minimum wage in LA is 14.25 an hour, then that is nearly 72 cents a mile.

Thus your actual average operating cost per mile to BREAK EVEN with you making minimum wage is

$1.09 a mile

Uber pays $1.23 a mile for a 3 minute mile. Assuming that you can keep your deadmiles down to 0.5 deadmiles for every paid mile (which is actually pretty hard to do), then your actualized per mile pay from Uber is $0.82 a mile.

That's $9 an hour folks. Welcome to the gig economy.

-------------------

The Practical Reality

I have talked to enough drivers to know they don't get the deadmile issue, and they have deadmile ratios of 1:1 and as should be obvious, they are making about a third of minimum wage. LOL.

To exactly make minimum wage, your deadmile ratio needs to be 0.12:1 or put another way:

If it is 1 mile to pick up the passenger, then that ride must be at least 9 miles.


If you aren't making that minuscule deadmile ratio, then you are making less than minimum wage.

This is not a job. This is being assaulted by corporate greed. And still Uber is losing billions a year - they lost 7.6 BILLION last year.

$7,600,000,000.00 — how do you lose that? Every year???
Like "hey honey, where did ai put that 7.6 billion? was it in the mattress?"

It's not sustainable, and these companies are going to go away if they don't realize that they can't keep treating people this way. They are relying on people not being able to do math, but even so the attrition rate for 6 months is 97%.. after 6 months, 31 out of 32 drivers QUIT. Gosh wonder why?
Pay sucks for sure , there’s a saying , I owe , I owe , so off to work I go , 4 days a week though. Do you , I’ll do me and when there’s no money left in this gig , I’ll move on to something else. Thanks for teaching us , this topic has been beaten to death , we know the pay sucks , I find options that make it work ....... for now
 
It's nothing more than a minimum wage job with zero benefits. Been saying that for over two years now. Still plenty of suckers out there tripping over each other for this scheme. It's like an addiction where they just can't break the cycle constantly out there chasing that big tip and occasional surge. In the end no one is getting ahead doing rideshare.
 
Breaks on a Camry hybrid can go 200k.
Costco has the most expensive tires in the world.
Stopped reading after Costco, obviously the author is a little off.
 
Cost per mile is a failed metric. Here is why: Two of your top three expenses, insurance and depreciation are (at least partially) based on time, not miles. A PT driver will have different cost/mi than a FT driver.

Allow me to completely destroy your argument. You are saying that insurance costs .11/mi. Drivers generally try to make $1/mi (including dead miles). You are saying that insurance costs 1/10th of your gross profits!

This is obviously not true, unless you have outrageous insurance costs (young man with points), or you are driving very little per month.

Driving FT, I gross 4K a month. My monthly insurance for my rideshare car costs $75, and that includes the $15 gap insurance. My insurance costs 1.8% of my gross, not 10%.

THAT IS THE PROBLEM with cost/mi metrics. Small errors in calculation will greatly skew results. You can't know your actual cost/mi metric until you have actually driven the miles. it varies based upon driver performance and market.

Rather than calculate a cost/mi metric, its better to do actual accounting. Total up all your expenses (and estimated repairs) and subtract that from actual gross earnings. That is your actual net earnings. From that you can calculate what percentage of your gross earnings were expenses. From there you can decide if rideshare is worthwhile.

For instance, if you are making 20/hr (gross) and your expenses are 30% of your gross, you are actually making $14/hr. A job at Walmart might be a better idea.

But if you are making 25/hr (gross) and your expenses are 10% of your gross, you are making $22.5/hr. Because its 1099 income, that is considerably better than minimum wage.
 
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nice note, but doesn't take into account if you aren't really doing RS to make a HUGE profit. Some of us, well a lot of us, do it for time/schedule and some MAD cash. I aim for positive cash flow; tax net loss. 2019 missed a loss by a whopping $155. I promise to do better for 2020. :thumbdown:

and, btw, the ride counts. A NICE ride is required or forget about it. Just saying.
 
I think the OP's stats are not bad. Just not correct. I do think if you have been fired from McDonald's and Taco Time for being lazy, then his /her statements might be pertinent for you.

He!! Here in Seattle market you cannot drive a 10yo car for rideshare. Only UE.

I still make $300 a day when I go out and drive and often times close to $400 even in the slow depths of winter.

Last year I booked $88,000 gross after RS fees.

Haven't done taxes yet but I anticipate $24,000 in taxable income.

Free money YAYYYYYYYY
 
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Cost per mile is a failed metric. Here is why: Two of your top three expenses, insurance and depreciation are (at least partially) based on time, not miles. A PT driver will have different cost/mi than a FT driver.

Allow me to completely destroy your argument. You are saying that insurance costs .11/mi. Drivers generally try to make $1/mi (including dead miles). You are saying that insurance costs 1/10th of your gross profits!

This is obviously not true, unless you have outrageous insurance costs (young man with points), or you are driving very little per month.

Driving FT, I gross 4K a month. My monthly insurance for my rideshare car costs $75, and that includes the $15 gap insurance. My insurance costs 1.8% of my gross, not 10%.

THAT IS THE PROBLEM with cost/mi metrics. Small errors in calculation will greatly skew results. You can't know your actual cost/mi metric until you have actually driven the miles. it varies based upon driver performance and market.

Rather than calculate a cost/mi metric, its better to do actual accounting. Total up all your expenses (and estimated repairs) and subtract that from actual gross earnings. That is your actual net earnings. From that you can calculate what percentage of your gross earnings were expenses. From there you can decide if rideshare is worthwhile.

For instance, if you are making 20/hr (gross) and your expenses are 30% of your gross, you are actually making $14/hr. A job at Walmart might be a better idea.

But if you are making 25/hr (gross) and your expenses are 10% of your gross, you are making $22.5/hr. Because its 1099 income, that is considerably better than minimum wage.

Also, never underestimate the costs of a standard job.

I was paid very well before I needed to take time off and ultimately we can rideshare to offset living expenses. But only recently did I look at some of the costs I was incurring to keep that well-paid job.

Gas. $3k
Tolls. $2.5k
Monthly parking $6k
Clothin

Dry cleaning $2.5k



‘That is $18,000 annually!!!!!
Post automatically merged:

Also, never underestimate the costs of a standard job.

I was paid very well before I needed to take time off and ultimately we can rideshare to offset living expenses. But only recently did I look at some of the costs I was incurring to keep that well-paid job.

Gas. $3k
Tolls. $2.5k
Monthly parking $6k
Clothin

Dry cleaning $2.5k



‘That is $18,000 annually!!!!!
And I still needed my vehicle and the car insurance and maintenance costs that went with it
 
Agree with most other responders, except on the hybrid point. OP you made a nice clear post that most not in the know yet should definitely read. Especially your point about how Uber could possibly be losing money. That is key to Uber being around in a few years. Some of that loss is of course Cap Ex for dominating all aspects of of the TNC market. Some seems to be due to poor management and incompetence (we all rise to our level do we not?). And perhaps a few vestiges of "start up mentality" still in play (like the exhorbatant parties).

But there are circumstances where not following your suggested playbook work out ok. I drive a new, leased, electric car. And I cruise for pings (live in a beautiful area so its fun). So seemingly breaking all the rules, eh? But I drive only two days a week, and the goal is to do nothing other than make car payments and pay for a week's worth of groceries. Last year the gig did just that, with a few thousand left in the kiddie. Plus, my costs are virtually fixed. No unexpected repair bills. California incentives for EVs helped a lot to make the math work. But still worthwhile without them.

Just sayin'.
 
Also, never underestimate the costs of a standard job.

And I still needed my vehicle and the car insurance and maintenance costs that went with it
Absolutely. I left my old job when the total costs were not worth it anymore. Especially the stress and the cost to my health. I worked out of my home/car and the company was forcing us to bear a lot of expenses without proper compensation for it.

Where I live I have at least a 20 mile commute to work anywhere decent, go shopping, etc. The car costs a lot no matter what.

Having to dress professionally is also a bigger expense than most people think about.

That said though. I lasted only 3 months doing rideshare. No matter what I did, what hours I worked, what locations I worked, I only grossed about $14 per hour. Gross not net! Too many other drivers, not enough rides, too many dead miles. I gross around $20 doing food delivery. It's not really enough to earn a decent living, but for me it's better than any other option I have right now.

Paxholes get incredible bargains on these rides and most do not appreciate it. Wanting you to break the law for them, even saying with attitude "I know it's against the law" implying you should do it anyway to serve them at slave wages. I believe rideshare is increasing entitlement to record levels and there is some sort of communist agenda behind it.
 
I believe rideshare is increasing entitlement to record levels and there is some sort of communist agenda behind it.
I think you're confusing cause and effect.

Yes, there's an entitlement mentality. Yes, it's basically a communist mentality.

But I think rideshare is an effect. That is, it's a symptom of the problem, not a cause of it.
 
I was responding to a thread in Los Angeles, but I think this is generally useful information, and applies to all markets though ertainly the actual numbers are going to vary based on region. In Los Angeles, gas is often over $4 a gallon, and insurance rates are among the highest in the nation.

Nevertheless, there are some sobering realities. Among them that you need a car that is mostly depreciated, and you need to keep costs as low as possible which means doing all your own work. And most important of all is kepping your deadmiles (unpaid miles, such as going to pick up a passenger) to an absolutely minimum.

Nothing kills your profits more than deadmiles, not to mention using a new car.

I see drivers driving new Dogde chargers, and guess what? they are losing about 30 cents for every miles they drive Uber. I talk to driver who don't get itthat they ust can;'t be "driving around" without being paid for those miles. And when you get a really long ride, you might think that's great — but if you deadmile all the way back? Then you are making close to ZERO.

THE MATH, BROKEN DOWN AND MADE EASY

Car should be 10 years old at purchase — $10K max, even that is a bit high. $8K I think is a sweet spot.

Should be hybrid — I have a Camry Hybrid. 30mpg+ is the goal. IF you have a non-hybrid that does that well in city traffic, that's okay. But 30mpg is really a minimum.

Do your own work. "YourDream Garage" in Baldwin Hills has lifts you can rent fo $25/hour with all the tools you need. Pay for the VIP in advance ($250) as it gives a number of discounts and free hours.

Maintenance costs are hard to estimate, who knows what can go wrong? But I'll tell you this: if you have a Toyota Hybrid, expect to be doing total rear brake replacements more often than you expect, including the calipers. At Autozone, I got pads, rotors, calipers for the rears total parts cost about $450, and two hours at YDG so total was about $500 doing it myself. If you go to Midas or some other rip off joint it's gonna be $1000. This is the SECOND TIME I've done the brakes in 55K miles, but first time I've done the calipers. First job was pads and rotors only.

Tires: Costco and wait for the sale on Michelins AND the Costco free install sale (happens for a month just twice a year I think).

Insurance: Statefarm has a good rideshare add on. But Mercury is cheaper. Nevertheless, Statefarm is aggressive in defending you in subrogation when you get hit. And you WILL get hit.

Oh yea, own a daskcam. $85 for Viofo A119. Get it and thank me later. A dash cam is not optional, seriously — you'll need it when a cop hassles you illegally as well.

BASIC MATH

Assuming:

  • a 10K car with 80K miles,
  • Gas @3.90, 30mpg,
  • self maintenance
  • Good insurance with rideshare
  • Car wash twice a month
  • driving 25K miles a year:

PER MILE:

Depreciation: .08
Gas: .13
Oil: .012
Tires: .01
Maintenance: .018
Car Washes: .01
Insurance: .11

TOTAL: 37 cents a mile.

Selling my soul to Uber: Priceless.

This last line is not a joke. Because my above costs, and everyone else's you read here, is missing the most important thing OUR TIME.

It is 37 cents a mile PLUS my time. If you want to say your time is only running when you are driving and you average 3 minutes per mile, and minimum wage in LA is 14.25 an hour, then that is nearly 72 cents a mile.

Thus your actual average operating cost per mile to BREAK EVEN with you making minimum wage is

$1.09 a mile

Uber pays $1.23 a mile for a 3 minute mile. Assuming that you can keep your deadmiles down to 0.5 deadmiles for every paid mile (which is actually pretty hard to do), then your actualized per mile pay from Uber is $0.82 a mile.

That's $9 an hour folks. Welcome to the gig economy.

-------------------

The Practical Reality

I have talked to enough drivers to know they don't get the deadmile issue, and they have deadmile ratios of 1:1 and as should be obvious, they are making about a third of minimum wage. LOL.

To exactly make minimum wage, your deadmile ratio needs to be 0.12:1 or put another way:

If it is 1 mile to pick up the passenger, then that ride must be at least 9 miles.


If you aren't making that minuscule deadmile ratio, then you are making less than minimum wage.

This is not a job. This is being assaulted by corporate greed. And still Uber is losing billions a year - they lost 7.6 BILLION last year.

$7,600,000,000.00 — how do you lose that? Every year???
Like "hey honey, where did ai put that 7.6 billion? was it in the mattress?"

It's not sustainable, and these companies are going to go away if they don't realize that they can't keep treating people this way. They are relying on people not being able to do math, but even so the attrition rate for 6 months is 97%.. after 6 months, 31 out of 32 drivers QUIT. Gosh wonder why?
The solution to a negative return is to only drive during surge and to avoid short trips. Since California has AB-5 bill now, the driver now has ALL the info to determine whether a trip is worthwhile. If the trip is short why accept it? Especially if you got to drive more than 10 minutes to get it. If you only drive part time, then Uber/Lyft can give you a reasonable return, otherwise full time is just the money pit. You might as well drive Taxi and get taxi rates which are double of what Uber/Lyft pays. 🤔 🤔 🤔
 
I think you're confusing cause and effect.

Yes, there's an entitlement mentality. Yes, it's basically a communist mentality.

But I think rideshare is an effect. That is, it's a symptom of the problem, not a cause of it.
Cause and effect goes both ways. I'm not confused.
 
I think the OP's stats are not bad. Just not correct. I do think if you have been fired from McDonald's and Taco Time for being lazy, then his /her statements might be pertinent for you.

He!! Here in Seattle market you cannot drive a 10yo car for rideshare. Only UE.

I still make $300 a day when I go out and drive and often times close to $400 even in the slow depths of winter.

Last year I booked $88,000 gross after RS fees.

Haven't done taxes yet but I anticipate $24,000 in taxable income.

Free money YAYYYYYYYY
Seattle.

Born on third and thinks he hit a triple.
 
THAT IS THE PROBLEM with cost/mi metrics. Small errors in calculation will greatly skew results. You can't know your actual cost/mi metric until you have actually driven the miles. it varies based upon driver performance and market.

Rather than calculate a cost/mi metric, its better to do actual accounting. Total up all your expenses (and estimated repairs) and subtract that from actual gross earnings. That is your actual net earnings. From that you can calculate what percentage of your gross earnings were expenses. From there you can decide if rideshare is worthwhile.

For instance, if you are making 20/hr (gross) and your expenses are 30% of your gross, you are actually making $14/hr. A job at Walmart might be a better idea.

But if you are making 25/hr (gross) and your expenses are 10% of your gross, you are making $22.5/hr. Because its 1099 income, that is considerably better than minimum wage.
[/QUOTE]


I probably work in a different market than many of you. But I've found a way to make this work using minimal miles (along with preserving the life of my car). I've eliminated $21K in debt over the last two years from using this as a secondary job. However, rideshare is an ever changing game and I believe that it's really only profitable done part-time where you can scale out the best times to drive. I also use my regular job as a buffer against tax liability so I don't take a hit at the end of the year. I'll leave you with my yearly summary from Uber. Also made another $1600 from Lyft....but you get the picture.
 

Attachments

Your numbers work for you but don't always work for others and everybody who does this gig is different. For me I love long drives in my area. A 30 mile drive will pay $45 and I will deal with no traffic and even if I deadhead back its still a money maker as my car is currently averaging 50MPG overall.

So far for February I have spent $107.00 for gas on my 2020 Ford Fusion Hybrid Plug-in just a little over 1600 miles for both ride share and personal use. My car lease/Insurance is $445. I drive basically three (sometimes 4) nights a week and my average take for Uber/Lyft per month is $1800. I know I'm trading my personal time for what I make but it pays my car and puts extra in the bank that we use for vacations or my drug habit AKA off-roading :smiles:
 
THAT IS THE PROBLEM with cost/mi metrics. Small errors in calculation will greatly skew results. You can't know your actual cost/mi metric until you have actually driven the miles. it varies based upon driver performance and market.

Rather than calculate a cost/mi metric, its better to do actual accounting. Total up all your expenses (and estimated repairs) and subtract that from actual gross earnings. That is your actual net earnings. From that you can calculate what percentage of your gross earnings were expenses. From there you can decide if rideshare is worthwhile.

For instance, if you are making 20/hr (gross) and your expenses are 30% of your gross, you are actually making $14/hr. A job at Walmart might be a better idea.

But if you are making 25/hr (gross) and your expenses are 10% of your gross, you are making $22.5/hr. Because its 1099 income, that is considerably better than minimum wage.

I probably work in a different market than many of you. But I've found a way to make this work using minimal miles (along with preserving the life of my car). I've eliminated $21K in debt over the last two years from using this as a secondary job. However, rideshare is an ever changing game and I believe that it's really only profitable done part-time where you can scale out the best times to drive. I also use my regular job as a buffer against tax liability so I don't take a hit at the end of the year. I'll leave you with my yearly summary from Uber. Also made another $1600 from Lyft....but you get the picture.
[/QUOTE]
So I noticed you booked $22,387 and Goober only took $4,840 of that. That is approximately 21.619% of total fares.

That is about what I run as well.

Great Job!
 
My lessons have been completely different. Let's look at this from another perspective.

First off, pox on those measured maintenance expenses. Tax rules let you deduct 57 cents per mile. As much as your actual costs are less is your profit. You're using the tax code to generate income.

Ditto dead miles. With the mileage deduction every mile makes you money.

With deductions cancelling earnings, that $9/hr. becomes comparable to $13/hr. from a regular job.

I'll disagree with the OP's car criteria. What matters most is the car be reliable, followed by economical to operate. ""New vs. old"" is irrelevant. All using an older car means is that you didn't get any income to offset the purchase. It's probably more important you start with low miles on a long-lived car. New / less worn stuff lasts longer.
 
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