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Uber’s Ever Elusive Source Of Profit

everythingsuber

Well-Known Member
http://Uberpeople.net/index.php/2018/08/21/ubers-elusive-profit/

"Early tests of Uber Cab in SF showed that the most a vehicle could earn was around $32/hr. After paying the driver the minimum wage that was required of limousine services in California plus employment taxes and fees, and then subtracting the vehicle expenses, there was not much revenue left over to support the required tech infrastructure. But, the new model borrowed from Lyft and Sidecar made use of drivers as independent contractors and left it to those drivers to figure out their own pay and expenses at Uber’s fixed rates. The formula took off like crazy across the country and Travis found it easy to raise money from eager investors."
 

Stevie The magic Unicorn

Well-Known Member
http://Uberpeople.net/index.php/2018/08/21/ubers-elusive-profit/

"Early tests of Uber Cab in SF showed that the most a vehicle could earn was around $32/hr. After paying the driver the minimum wage that was required of limousine services in California plus employment taxes and fees, and then subtracting the vehicle expenses, there was not much revenue left over to support the required tech infrastructure. But, the new model borrowed from Lyft and Sidecar made use of drivers as independent contractors and left it to those drivers to figure out their own pay and expenses at Uber’s fixed rates. The formula took off like crazy across the country and Travis found it easy to raise money from eager investors."
32 an hour is generous,

i frankly doubt it's possible in many places (at all) or consistent 24 hours anywhere (maybe NYC Chi-town and a few other top top markets).

In Orlando you might be able to crack 30 an hour for 12 hours a day max charging taxi rates.

However IC taxi drivers (especially if it's a team) can easily cover their expenses and pay themselves well if they can hit 25 an hour for 12 hours a day even paying exorbitant cab rentals.
 

KevinH

Well-Known Member
The $32 figure was before UberX and existing limo services were used during the roll-out. The rates were limo service level. It may have been $34 or even $36, as my memory is a little foggy on this. But i think it was $32 that Ryan Graves, the CEO at the time said.
 

melusine3

Well-Known Member
I thought " Fleecing" Investors WAS how Uber makes a profit !
I drove a "fat cat" kind of guy once, along with a couple of his friends and he was sitting in the back seat boasting about how Uber was such a great investment. I had to pipe in that NO IT WASN'T and detailed why. No doubt, he was thinking "once we replace you drivers with driverless cars we'll make BILLIONS" but if that is the only way they think they'll make money, I have news for them. They're as clueless about the costs as new drivers to the platform. Something's gotta give.
 
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