Uber Pay bragging and plain stupidity. (Read it. It won't kill you)

I'm still seeing these people around. This is one of the top reasons people keep cluelessly driving. Many drivers need to sharpen their math/business skills. So many still mistake gross income vs profit. If a lot of these drivers had a brick and mortar (a business with a physical building or structure) they would've gone bankrupt already.

The following is for new drivers (and old ones who still don't get it). When Uber tells you the total fares were $900, you didn't really make $900 dollars. I repeat, YOU didn't make $900 dollars. Let's say you're a UberX driver who just worked 60 hours and fares were equal to $900. It would go like this:

Total fares = $900
Commission = 25% (newer UberX driver)

After Uber's Commission, you have $675. There's also this thing called taxes, which last time I checked was 15.3% for self-employment — 12.4% for social security and 2.9% for Medicare. 675*0.153 = $103.27 <<<- You better save this for the IRS. Now you're left with $571.73.

Let's say that you've spent $60 in gas but you probably spent more and you know it :frown:. Now you have $511.73.

I won't include your car depreciation, maintenance, and other misc. expenses, as some people's brain might overload and explode. So let's just say your profit was $511.73. Is it worth it to work 60 hours for $511 (or $8.5/hour)?

Look at your bank account and tell me if it looks like you made $900 dollars last week. or $1000, 0r $1200. Keep telling yourself you made that money and keep bragging about it to make you feel better (like some drivers do). Any job where you've worked 60 hours will pay you waayyy more than that. Specially when you get paid those extra 20 hours time and one-half.
 
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Even If I deducted (wrote off) at the the standard mileage rate. Or if I went the other route and deducted my actual expenses instead (which I mentioned wasn't gonna do, for the sake of simplicity), this earnings example would be less than if you work at another job making, lets say, $13 an hour working 20 hours overtime.

BTW, when I passed by H&R block to check the Uber "info" sessions they were holding months back, a lot of the drivers there didn't even know what a write off was.
 
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Older Chauffeur

Well-Known Member
Even If I deducted (wrote off) at the the standard mileage rate. Or if I went the other route and deducted my actual expenses instead (which I mentioned wasn't gonna do, for the sake of simplicity), this earnings example would be less than if you work at another job making, lets say, $13 an hour working 20 hours overtime.
If you don't include the tax write offs then it is misleading to list the tax numbers to arrive at the hourly figure you want to make your point. I don't disagree with your basic premise, however.
As much as it has been written here, some still don't accept that they are trading their equity in their cars for cash flow. Granted, that factor has less impact the older the car and the lower the purchase price.
I have no dog in this fight- I only use my own car to get to my clients' homes or offices, and then drive them in their own vehicles.
 

limepro

Well-Known Member
If you don't include the tax write offs then it is misleading to list the tax numbers to arrive at the hourly figure you want to make your point. I don't disagree with your basic premise, however.
As much as it has been written here, some still don't accept that they are trading their equity in their cars for cash flow. Granted, that factor has less impact the older the car and the lower the purchase price.
I have no dog in this fight- I only use my own car to get to my clients' homes or offices, and then drive them in their own vehicles.
Exactly, I don't drive Uber either but the math was skewed and people not knowing what a write off is aren't the brightest and make Uber the happiest.
 
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Exactly, I don't drive Uber either but the math was skewed and people not knowing what a write off is aren't the brightest and make Uber the happiest.

That's why I kept it as simple as possible.
I wanted to pointed out how many drivers think that they are making huge amounts of money because they think their gross income equals their profit, when in reality what they're taking home is a LOT less.

Driving and being clueless about the basic things that affects your income as an Uber driver. Is what keeps Uber misleading many drivers into thinking they're making more even when they keep lowering the rates.
 

miamiu

Well-Known Member
.575 per mile includes all write offs for Uber. Add in Ubers .18 cent per mile.

.75.5 cent cost per mile. You uber x guys are left with a loss of half a penny.

Dumb as stumps, plus the pathetic pool scenario.
How stupid are the uber x guys?
 

limepro

Well-Known Member
.575 per mile includes all write offs for Uber. Add in Ubers .18 cent per mile.

.75.5 cent cost per mile. You uber x guys are left with a loss of half a penny.

Dumb as stumps, plus the pathetic pool scenario.
How stupid are the uber x guys?
Yes 57.5 is the write off amount not true costs, don't forget that .57 cents includes big rigs which is why it so high, actual expenses are much lower especially the older the vehicle.
 

agtg

Well-Known Member
A good daily number for depreciation would be the cost it would be to rent your car for a day, so knock another $50 bucks or more off.
 

Older Chauffeur

Well-Known Member
The $.575 figure was for 2015. It was reduced to $.54 for 2016. From the comments in the taxes section of the boards most drivers found that the IRS standard mileage rate gave them the best deduction for 2015.
Owner/operators of over-the-road big rigs can't use the standard mileage rate, so that wouldn't affect the rate for cars. The rate is based on all costs to operate an average car/SUV/pickup, etc.
The Auto Club usually puts the costs up in the same territory as the IRS.
Edit: http://newsroom.aaa.com/auto/your-driving-costs/
 
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t5contra

Well-Known Member
Drivers with enough sense have fallen off a long time ago and uber is left with folks that are financis ally desperate and new immigrants. Uber pay is all about instant gratification. Why do you think payday loan places and second chance used car financing is so damn successful?
 

EagleEye

Well-Known Member
When you go over your mileage allowance on a 3 year old leased car, it usually costs between 20c to 30c per mile depending on the make. And it is usually cheaper if you buy the miles before the end of your lease. This should be a good indicator for depreciation and wear and tear as if anyone knows car costs it should be the manufacturers. Older cars probably have less depreciation but wear and tear may be more.
Fuel is another 7c to 12c.
 

t5contra

Well-Known Member
I drive a 2009 ford who gives a s*it that I paid 3k for ,100k and I get constant compliments on it. I truly don't understand why anyone would buy or lease a new car for uber but to each his own. My car has paid for itself multiple times and I could still get my money back if I am to turn around and sell it.
 

2Cents

Well-Known Member
.575 per mile includes all write offs for Uber. Add in Ubers .18 cent per mile.

.75.5 cent cost per mile. You uber x guys are left with a loss of half a penny.

Dumb as stumps, plus the pathetic pool scenario.
How stupid are the uber x guys?
What about if the rate is .65 CPM like in Central FL?
 
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