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UBER-X What You Should Know

Do you feel UBER X pay's fair mileage and time rates?

  • Yes

    Votes: 1 5.3%
  • No

    Votes: 18 94.7%

  • Total voters


New Member
A recent poll shows that 70% of business travelers are using ride-share like UBER and LYFT. The most popular UBER service is "UBER-X" know for being friendly and thrifty. The cost for UBER-X during non-peak periods is 10 cents per minute and 85 cents per mile, with a minimum charge of $3.50. This put the average ride in the DFW area to about $10.

For the purpose of this post, I will use the UBER company in reference to Ride Share.

Now for the bad news. UBER requires each driver to have their own personal insurance. Most insurance polices are written for casual driving (12,000 miles per year or less). UBER boast that their top drivers can earn up to $70,000 per year in the DFW Area. How many miles would it take for a driver to earn $70,000 net UBER Fees and toll reimbursements? Here's the math:

Average speed = 35mph

Rate per mile: 85 cents

Rate per minute: 10 cents

Rate per mile with minute prorate: 88.5 cents per mile

$70,000 / .885 = 79,096 revenue miles

79,096 / 12,000 = 6.59 years

It would take the average UBER-X Driver 6 1/2 years to make $70,000. The only way he or she could make that kind of money is by driving 216.44 revenue miles (433 actual miles) per day for the entire year. If the average work year at 40 hours per week is 220 days, then each full time driver on average would have driven 47,616.8 revenue miles (95,233 actual miles) in 220 days while only making $42,140.87.

(Only 50% of miles driven are revenue miles which means the actual miles and time spent is x2).

Let's talk about insurance for a moment. How do you think an insurance company will respond to an UBER Driver being in an accident? Not a problem if the UBER app was activated during the time of the accident. However, if the insurance company knew that they were using that vehicle for hire and driving it almost 50,000 miles per year, do you think this would affect their rates? You bet!

Another problem that UBER is having is retaining drivers. Most UBER-X drivers are part-time retired or weekend warriors working for extra bucks. If an UBER-X Driver puts 1,000 miles on his vehicle one weekend, he could expect to receive $354. When you do the math that equates to 35 cents per mile.

To put things in perspective, if an UBER X driver put 100,000 physical miles on his vehicle in one year, he will at best make $35,000. Interesting number being that is the national average for Limo and Taxi Drivers.

So if you are planning to fall for the hype and driver for UBER-X full time, be prepare to burn out your new vehicle in one year with a gross income of $35,ooo. Best vehicles to drive for UBER-X are the Honda Fit, Honda Civic, Toyota Corolla, and Nissan Sentra.


Amsoil Uber Connect

Well-Known Member
I had a pax 4.6 yesterday wondering about being canceled on. Then he mentioned about driver turn over rate. I told him I heard it is 55% after 6 months , he wondered why.

I said because no one can make a living at $1.00 a mile.

And by my calculations, to make $70k a year your going put a hundred and seventy five thousand miles year on the car!!! In a @@@@ing year!!! Are you serious!!!. Thought I'd spell it out for them smh. 175,000 miles.
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Well-Known Member
Oh, you are so negative! :biggrin: And you didn't figure in the all important pick up fee of $1 ($0.80 net)

The way I figure, a minimum fare ride is anything under 1.47 miles at the 20% tier. So, let's say you can NET $2.02 per 1.5 mile ride. That only means you need 34,535 1.5-mile trips per year! You can do 17 of those in an hour, taking only 44.6 minutes per each of the 2000 hours you work per year. All that, and you only put on 51,803 miles, plus deadhead miles. And guess what? Of that $70,000 income, you only have to declare $40,213 as income because you've deducted $29,787!

At $1 per mile, you only save 2,800 trips per year and probably don't get near as many cool rewards!

BTW, at 25% commission, you'd have to INCREASE the number of trips by 2,400 per year.

Interestingly, longer trips work against consistent local short trips. For example, using all the same numbers above, you'd have to work 49 minutes an hour if your average trip was 10 miles AND you could average 50 MPH. In this scenario, you'd have to take only 8177 trips but you would put 81770 miles on your car. You would end up deducting $47,000 and netting $23,000!

You turn the tide at an optimum of 2.4 miles per trip, if you can bang out 13 trips per hour. Then your deductible almost matches your net.
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