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This guy figured out Uber and Lyft have been paying him a whopping 42 cents per hour

Discussion in 'Pay' started by BurgerTiime, Jul 12, 2018.

  1. BurgerTiime

    BurgerTiime

    Location:
    Minneapolis
    Driving:
    Lyft
    https://knowtechie.com/uber-payment-per-hour/


    Uber and Lyft offer a great way to make some extra cash or even start your own small business. Or do they? For one ride-sharing driver, the answer is a firm no when looking at his per hour rate.

    Road Guy Rob recently took to YouTube to explain just how much money he made during nine hours of driving. He explained:

    You won’t believe how much money my Excel spreadsheet said I made after 9 hours of driving. On a whim, I signed up for both Uber and Lyft to see how much net profit I could make. After a long day of driving, I opened Microsoft Excel and entered my gross income and subtracted all my expenses. It gave me a picture of just how lucrative it could be for me to drive for ridesharing apps.
    [​IMG]

    So how much did he make? Just 42 cents per hour. Yes, you heard that right. For a quick explanation, by the time you take off 40% for taxes (Uber and Lyft drivers are technically contracted workers), gas, and wear-and-tear on the car, the numbers become increasingly dismal.
    [​IMG]
     
    Last edited: Jul 12, 2018
  2. Zebonkey

    Zebonkey

    Location:
    San Francisco
    Driving:
    UberSUV
    If you take 40% for taxes, you're not doing your taxes right.
     
  3. BurgerTiime

    BurgerTiime

    Location:
    Minneapolis
    Driving:
    Lyft
    It wasn’t just taxes. It’s required Medicare and social security. That’s the big issue. Most drivers miss that. Even you did.
     
  4. Atom guy

    Atom guy

    Location:
    CT
    I do my taxes using TurboTax. Every year as I am putting the numbers in it starts calculating what I owe, and the state and federal numbers go gray, which is what I owe for self employment taxes (when the numbers are red it is what you owe in income taxes). Those numbers stay there no matter what deductions I put in, UNTIL I put in the Obamacare premiums I paid. Then magically they turn green and I go from owing money to getting a refund.
     
  5. steveK2016

    steveK2016

    Location:
    Dallas / Fort Worth Texas
    Driving:
    UberXL
    In GA, the only tax that my CPA couldnt drop to a zero based on deductions is the GA self employment tax. All other taxes can be deducted to $0.

    I owed taxes because I made over $1 per mile, combined miles including dead miles. The average uber driver probably doesn't get that much and may actually have enough mileage to net $0 in taxes unless they have a similar tax to GAs self employment tax.

    Expenses is where part timers rule. I need a car for my full time job that pays a great salary. So the car is covered by those earnings, so I'm not going to count that expense twice by also accounting for it in my Uber earnings. A full time driver cant do that.
     
  6. I have 2 local taxes to add in, each are $200. Amortized over the year as a full time driver, they are pennies per day. If I were part time, they would be prorated at a much higher %.

    Taxes are the same way. I own a home, so I get mortgage deduction. Kid in college is educational expense. My taxes, even with the extra stuff, winds up being closer to 20% when state is added in. Everyone is different.
     
    Judy2017 likes this.
  7. Steelersnut

    Steelersnut

    Location:
    15241
    What did this guy do? One day as experiment? Does he have a ratings cutoff? Does he know what areas to avoid? Does he know when to cancel? Does he know anything? Recently raised mine to 4.88 and making $25hr. This is without a doubt the dumbest post ever.

    So junior youtube poster knows everything?
     
  8. There's a problem with his math.

    His math is paying his taxes BEFORE removing money for expenses.

    a commenter on the video did the math on it




    $91 gross income ($9.10 an hour)

    Minus gas (25.38)
    Minus wear&tear (his estimate on expenses) $25.38

    Taxable profit ($40.24)

    X 40% (taxes) = $16.01

    $91
    -$25.38
    -$25.38
    -$16.01

    For a total profit after taxes of... $24.23

    Or for 9 hours $2.69 an hour
    (1978 min wage was $2.65 an hour)

    A huge improvement over his initial numbers, but still barely over 1/3 of federal min wage.
     
  9. steveK2016

    steveK2016

    Location:
    Dallas / Fort Worth Texas
    Driving:
    UberXL
    If he is using SMD hed have $0 tax unless he has state self employment taxes that cannot be deductsd to $0 like in Georgia.

    If he spent $25 on gas then he did roughly 227 miles for a deduction of $119, so that can be carried over to other income.

    So that at least brings it to $4.47
     

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