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Uber and Enterprise launch Denver car-rental pilot to attract drivers

chi1cabby

Well-Known Member
  • Thread Starter Thread Starter
  • #4
Posting this for this interesting Correction demanded by Uber.

In pilot program, Uber is setting drivers up with rental cars

Correction: Uber noted that it asked Ars and The Denver Post to correct Chapin's statement to say that the offer would "lower the barrier to entry for someone who does want to work with Uber," rather than "someone who does want to work for Uber."
 

stuber

Well-Known Member
OK, now that I actually read the article, it's not that crazy. Renting a car could make sense if you want to keep from trashing your own.

But the program, like all things UBER, is essentially aimed at part time, non commercial drivers. Hell, I can burn through 2800 in a week. Then I'd be on the hook for $.25 per mile after week one of the month.

There's probably a way this could work for somebody. Just not me.
 

stuber

Well-Known Member
Also...one would really need to read the fine print regarding insurance, and, get their prices for a car that qualifies for SELECT or XL. Answer all that and perhaps these rentals could work. My guess is that the rental+insurance+fuel+mileage+etc etc etc, could end up running $4,000 or more per month.

God my head hurts from all these schemes UBER dreams up.
 

stuber

Well-Known Member

Matt Uterak

Well-Known Member
Say you manage $0.53 per mile after ubers cut and fuel. That includes dead miles. That is about where I am consistently.

That means earnings from 2500 miles is $1,325. IF one averages 25 mph on the clock you get 100 hours of driving. Cost per week of the lease is going to be about $230 if taxes are included. That means $920 in lease costs. 1325-920 = 405/100 = $4 hr.
If one drives 200 hours for the month and averages the same .53 they can make and another 2500 miles = 2650 earnings - 920 - 625 = 1105/200 = $5.52/hr

The numbers don't add up. 1/2 the lease rate would make more sense.
 

Matt Uterak

Well-Known Member
A best case scenario.

Average speed 25mph
All miles are paid.

2500/25 = 100 hours * 60 * .128 = 768
2500 * .88 = 2200

Fuel costs at about .08 mile

2500*.08 = 200

2200+768-200 = 2768 - 920 = 1848/100 = 18.48/hr

So the unattainable max is $18.48/hr
 

Micmac

Well-Known Member
Also...one would really need to read the fine print regarding insurance, and, get their prices for a car that qualifies for SELECT or XL. Answer all that and perhaps these rentals could work. My guess is that the rental+insurance+fuel+mileage+etc etc etc, could end up running $4,000 or more per month.

God my head hurts from all these schemes UBER dreams up.
Won't work rental is expensive now you have two criminals to take your money Uber+enterprise , my advice run. I think Uber Denver team must smokin to come up with this .
 
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Drive777

Well-Known Member
One paragraph from the article says it all:

"What we're trying to do here is lower the barrier to entry for someone who does want to work with Uber but who does not have a qualifying car or doesn't have a car at all," said Andrew Chapin, Uber's Head of Vehicle Solutions.

So as it stands, the barrier to entry (which we all thought was practically non existent) is still too high for Uber's business model. Now they're saying hey, we need people who don't drive or have qualifying cars to be the face of Uber!

Mr. Chapin is admitting Uber has a driver supply problem that needs fixed.... how? By bringing on more drivers that aren't yet reachable even at the bottom of the barrel.
 

Bob Reynolds

Well-Known Member
Ain't no way 2800 miles a month will cover a Uber driver that is paying this much to rent a car. They will need 4000-6000 miles a month.
 

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