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Interesting read: Towards a Cost Estimate of a NYC UberX Driver by Lawrence Myers

Inshur

John Deer

Active Member
  • Thread Starter Thread Starter
  • #2
To summarize their results:
- Only looked at UberX (Camry)
- Uber, Black Fund and taxes eat 30.59% of the fare
- For a full-time driver, cost-per-mile is $0.37 assuming buying the car (either cash or loan), and $0.39 lease.
- The cost can easily be higher if gas prices rise, the car needs more maintenance, the driver's credit is not stellar etc.
- For less-than-optimal-conditions, they estimate the costs go to $0.40-$0.42
- Insurance can add $0.08/mile (they assume $9000/year)
 

cybertec69

Well-Known Member
Income tax?????
Yes income tax, no one is exempt from income tax, as a 1099 self employed you have to pay tax on the gross earning from Uber "the money's they deposit into your account every week, which is gross.
 

TomP

Active Member
Income tax?????
I did a quick read of the document. Maybe I missed something. I see that the document describes scenarios for 5 drivers: A, B, C, D and E but I don't see it getting into total income figures for the year for each of the drivers. With that the author could then have worked out net income per hour before tax for each of the driver scenarios which would be a key figure of interest to a prospective driver. But on the other hand the title of the article is Towards A Cost Estimate of A NYC UberX Driver so he didn't say he was going to give the income side.

Anyway, without total income for the year you can't calculate income tax. I don't think an analysis such this needs to work out after tax income. If total income figures were estimated the reader could work out tax or get an income tax preparer to give an estimate based on income and expenses.

I find the document strange in its treatment of insurance. Since commercial insurance is required in NYC, why does the document discuss the costs of personal insurance and the issues that UberX drivers have in other cities with insurance and non-disclosure of Uber driving? There is a disclaimer on the very last page:

Note: This paper was updated on June 18, to change inaccurate statements that UberX
drivers in NYC are not required to carry FHV-level insurance.
But the rest of the document does not appear to been updated accordingly.
 
Last edited:

John Deer

Active Member
  • Thread Starter Thread Starter
  • #6
Anyway, without total income for the year you can't calculate income tax. I don't think an analysis such this needs to work out after tax income.
Right - this paper calculates the costs of "partnering" with Uber.
The revenue side depends on how much you make per hour vs how many miles you driver.
I can try to estimate this as follows:
- From the paper, the average speed of a taxi is 13.3 mph. It uses this number to estimate total UberX miles/year.
- Unlike a taxi, an UberX driver doesn't have to keep the engine running all the time. Say it takes 4 minutes (0.9 miles) on average to pickup a PAX. Still, you need to factor in the miles to get back from Brooklyn with no fare - so say 1.5 miles added per trip?
- The average trip distance and the average fare. Let's say the average trip is $22/5 miles?
- The number of trips/hour (1.5?)

So, if all these numbers are correct:
- Gross revenue is $22 x 1.5 = $33
- Total miles/hr: 1.5 x 1.5 = 2.25 miles driving "empty" + 5 miles/trip x 1.5 trips/hr = 7.5 miles = about 10 miles/hr

So, if we take $0.4/mile, this amounts to $4/hr for the car.

Net pay (well, without income tax):
- (100%-30.59%)* $33 = $22.9 after Uber, Black Car fund, etc.
- $22.9 - $4 = $18.9 after car costs.

Does this number make any sense?
 

cybertec69

Well-Known Member
Right - this paper calculates the costs of "partnering" with Uber.
The revenue side depends on how much you make per hour vs how many miles you driver.
I can try to estimate this as follows:
- From the paper, the average speed of a taxi is 13.3 mph. It uses this number to estimate total UberX miles/year.
- Unlike a taxi, an UberX driver doesn't have to keep the engine running all the time. Say it takes 4 minutes (0.9 miles) on average to pickup a PAX. Still, you need to factor in the miles to get back from Brooklyn with no fare - so say 1.5 miles added per trip?
- The average trip distance and the average fare. Let's say the average trip is $22/5 miles?
- The number of trips/hour (1.5?)

So, if all these numbers are correct:
- Gross revenue is $22 x 1.5 = $33
- Total miles/hr: 1.5 x 1.5 = 2.25 miles driving "empty" + 5 miles/trip x 1.5 trips/hr = 7.5 miles = about 10 miles/hr

So, if we take $0.4/mile, this amounts to $4/hr for the car.

Net pay (well, without income tax):
- (100%-30.59%)* $33 = $22.9 after Uber, Black Car fund, etc.
- $22.9 - $4 = $18.9 after car costs.

Does this number make any sense?
No
 
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