In a typical hour you may have passengers in your car for 30 minutes. And in most cities you'll average around 15-20 mph. Using LA's $0.60-per-mile rate, a driver averaging 20 mph for 30 minutes would earn $6 in mileage charges and about $6 in per-minute charges. So $12 gross before all car and other related expenses are taken into consideration. AAA and the IRS both estimate that the average cost per mile for driving in America (including all types of passenger cars) comes to around $0.55 per mile. So, if we lower that to $0.45 a mile, in this example the driver would have incurred approximately $4.50 in expenses, netting himself a grand total of $7.50 for an hour of work.
If you're thinking or buying a car for full- or part-time use driving for rideshares like Lyft or Uber, here are a few things to consider to make sure you can maximize your income and return on your investment.