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Clueless writer believes Uber drivers gross $25 per hour but net minimum wage

1.9K views 26 replies 22 participants last post by  teh744  
#1 ·

Like so many other financial writers, talking heads, and other alleged journalists, Ms.Cao couldn't be bothered doing her homework and seems to lack business common sense.

How else could she come to the conclusion that $25 per hour gross would net minimum wage?

Like so many other analysts, she relies on the numbers Uber feeds her. Other writers and analysts rely on the fictitious $23 per hour average gross from Harry Campbell the Rideshare Guy's unscientific reader "survey".

She claims that gas, Uber's cut, and taxes bring that $25 down to minimum wage.

Ms Cao, the reason so many drivers net minimum wage (many net LESS than minimum wage) is because the 1970s taxi rates drivers are paid results in a gross far below $25 for the vast majority of drivers.

Look at all of the markets where drivers are paid 50-55 cents per mile and 7-10 cents per minute. $25 per hour is way out of reach for the vast majority of drivers in those markets.

This is why it's so important to educate these people as well as the govt about how this business works.
 
#3 ·
I gross around $25 an hour on a weekday night. Usually 10 hours will get me $250-$300. But net is another story. Gas would normally be $25 or so, then amortizing depreciation, maintenance, tires and repairs.

Less during the day. Maybe 75% of that.
You're a one percenter.

Are you an Uber X driver?

The biggest reason Uber loses 97% of their drivers every year is because very few of them gross more than $15 per hour.

What are the pay rates in Salt Lake City?
 
#6 ·
The biggest variable Uber fails to record and disclose, is it costs us money to get to the rider. Uber doesn’t acknowledge this number at all, on all financial records they disclose, it only records distance and time ontrip, (plus they don’t account for tax and expenses)

So when you look at that number, yes we are paid quite well,
 
#7 ·
The biggest variable Uber fails to record and disclose, is it costs us money to get to the rider. Uber doesn't acknowledge this number at all, on all financial records they disclose, it only records distance and time ontrip, (plus they don't account for tax and expenses)

So when you look at that number, yes we are paid quite well,
Especially lately, I am constantly seeing requests for 10-18 minutes to pickup locations for 3-5 minute trips. At first (after my 2 1/2 month break) I was accepting everything, not now; F. that.
 
#11 · (Edited)
Actually I have on occasion but what's the point of your question?

I easily clear $18 hour after expenses ..not that difficult if you're a good ant.. if you are picky and not accepting rides

Lyft always has rides stacked for me

Of course ..different markets is probably the biggest variable
If it wasn't difficult for the vast majority of drivers, Uber wouldn't be losing 97% of their drivers every year.

Remember, most of the members of this website and others like it are in the highest percentiles of earners and don't represent the typical driver.

I usually gross (and net) between $25 dollars an hour, and up to as much as $30, when I hit a lucky streak. I go home between $200-250 a day, and rarely work past that, because I'm just not interested after 600 PM .
You're another one percenter. Most members of websites like this are in the upper tiers of earners and are not your average driver.

The biggest variable Uber fails to record and disclose, is it costs us money to get to the rider. Uber doesn't acknowledge this number at all, on all financial records they disclose, it only records distance and time ontrip, (plus they don't account for tax and expenses)

So when you look at that number, yes we are paid quite well,
I flatout don't believe the $25 number, period.

If Uber was telling the truth about the $25, their whopping 97% (most likely higher) turnover rate would be much lower.
 
#10 ·
Even when I drove taxi people thought I got an hourly wage and were totally clueless on how we were really paid. At least we're not wage slaves and therefore we don't think like wage slaves. People also don't get it that we don't have a corporation paying our health insurance, social security, sick days, and of course a pension. Since they know nothing else they assume everyone gets the same. Listening to these guys gripe about the unemployment they think we're not entitled to, I remind them that I pay just as much in taxes as I did when I had a job, therefore I pay all those things myself, except I rarely get any credit for it, it's called self-employment tax.
 
#12 ·
Just read the first two paragraphs and you can see a classic example of forked tongued speech:

"Uber's charismatic CEO Dara Khosrowshahi wouldn't oppose the idea of sharing some of his $3 million salary plus $40 million worth of equity with Uber's minimum wage-earning drivers. He just wouldn't give the order himself."

"Khosrowshahi acknowledged that things have "gone too far," but argued that it should be governments' and society's job to fix it."


Okay... so, you want to "do the right thing" and "share the wealth" but you won't do that and do not think the government or society should tell you to either. How exactly do drivers get a fair wage then? Magic? In a perfect world, capitalism would run its course and other options would emerge. U&L would either adapt or die. The biggest problem is these companies are just so sneaky in offloading expenses and risk onto their contractors and lots of folks driving are making really bad business decisions. They think they are doing okay but when they finally realize they are not, it is far too late. U&L have gotten what they needed and moved on to the next fresh greenie.

The $25/hour figure is ludicrous if we are talking in general terms. Of course if you count the service fee in your figures, it is going to look WAY better. That is money drivers never see and outside of California, the average service fees are around 1/3 of what riders pay. I only really trust a few websites when it comes to Uber/Lyft figures and articles; one is Jalopnik because they talk to actual drivers and use their trip data.

As a part timer, I agree with others in that I typically grossed over $20/hour but that was because I had the luxury of driving when I wanted and only viewed it as worthwhile to go out when I could reasonably expect to earn similar numbers. I also could afford to be picky and by my fourth year doing this, I would fairly consistently (give or take a few bad or unlucky nights) gross $1/mile (with tips and surge) in a market where I am only payed $0.69/mi. One thing drivers do not always consider are opportunity costs. Let's say you take a base ride 30 minutes into the middle of nowhere and then find out a huge surge popped up in the area you just were. It is stuff like this that can really drag down your averages.
 
#19 ·
I think they need to talk about how random Uber is and what hours you can drive to make $25+ an hour.
Before the virus, I rarely made more than $12-$15 an hour Sunday to Wednesday. Thursday was usually a solid $18+ an hour. On Friday and Saturday after 5PM its usually not problem making $25 an hour. But, if I made $30+ for several consecutive hours it seems I would get put into time out for an hour until my average fell to the low 20's.
So, during the week, I started driving only busy hours from 6-7am to 10am and would go back out and drive from 3pm-7pm. This way I wasn't stuck waiting around in parking lots for an hour or two at a time waiting for rides and my income increased to over $15 an hour during the week.
But with Uber being as random as it is you could make $25 an hour on a Monday then $8 an hour the next Monday.
 
#26 ·
The $25/hour figure is ludicrous if we are talking in general terms. Of course if you count the service fee in your figures, it is going to look WAY better. That is money drivers never see and outside of California, the average service fees are around 1/3 of what riders pay.
Last year Uber told the tax man I made around $60k. 1099 number.

My bank deposits from Uber showed around $36k.

From that $36k comes my expenses, write-offs, etc.

But Uber is happy to advertise that I'm an "average" driver, making $60k per year, outside of CA.