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Discussion Starter · #1 ·
I planned to sign up with Uber to utilize 40 hours a month working New Jersey.

The plan called for buying a beater for $2k with another $2k for the liability insurance. With the relatively negligible car cost I would keep my fingers crossed to avoid accidents and breakdowns. I viewed this as a lottery with a fixed downside of $2k but a sizable upside.

With the thoughts about the actual upside I started researching into the Uber world. Shortly after I came across this discussion board. The comparison to the minimum wage and feedback about saturated market turned me cautious. I no longer itched to hunt for a beater; instead I sat down to get a clear idea about what the best case scenario would be.

This board has a number of great cost-per-mile models. These work great for the newer cars where ignoring the depreciation will make your operation unsustainable. The cost-per-mile captures the repairs, the deductibles, and the maintenance very well.

I tried these models and felt they do not work for my setup. A $2k beater arguably does not depreciate whether its miles go from 120k to 150k or if left parked five out of seven days. But the insurance expenses for the unused days add up and have to be paid for during the part-time raids. Roughly insurance expense a day goes up 5-6 times for the part-time driver.

Thus I struggled applying the cost-per-mile model to the weekend driving. Instead I needed a time-based model to account for my part-time engagement which I modeled using a day-by-day approach. The model immediately deducts the tax, the car and the insurance expenses from the daily earnings. I do this to crystallize the upside of the original bet.

You will find the link to the model worksheet below. It is a Google-spreadsheets document.

I made a number of assumptions which I kindly ask the community to challenge. These assumptions are expressed as ratios: Paid to Empty miles, Paid Miles to Paid Minutes, Number of Trips per Hour, and so on. These ratios are annual averages. When reviewing these please account for the slower days, the so-so days, as well as for those days worth bragging about.

If the assumptions would hold up I will stay away from my original bet.

Without further ado:

Version November 19, 2017
[The board requires me to have 3 posts before I can upload a link. Please can somebody PM me so I would give you the link and you would post it below my post? Grrrr...]
 

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A few weeks ago I had a pax who claimed to be a programmer who works on the algorithm in the Chelsea office. He asked if I thought it was possible for an Uber X driver to earn $80,000 a year. I'm still laughing.

I said, "Yeah, sure, if he has a side job that pays $60,000 a year."
 

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A few weeks ago I had an pax who claimed to be a programmer who works on the algorithm in the Chelsea office. He asked if I thought it was possible for an Uber X driver to earn $80,000 a year. I'm still laughing.
Only if he starts muleing for the cartel.
 

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A few weeks ago I had a pax who claimed to be a programmer who works on the algorithm in the Chelsea office. He asked if I thought it was possible for an Uber X driver to earn $80,000 a year. I'm still laughing.

I said, "Yeah, sure, if he has a side job that pays $60,000 a year."
My best guess in nnj full time doing 40-55 hours a week would be a net gross of 55-60 k a year.
Once you pay for Obama care insurance, auto and rideshare insurance, car payment if needed, fuel, breaks, tires, oil... you are left with peanuts. This job rules!!!
Almost forgot, full timers need to plan buy treats and water for pax.
 

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So a couple of things. I am not sure why you'd apply a 2k insurance policy when several vendors already off a rideshare rider. Secondly, at 10 hours a week, the maximum revenue you'd be looking at is $1000/month. And that's maxing at $25/hour, which is a heady goal.

Your model would change radically if you went to 20 hours/week
 

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I planned to sign up with Uber to utilize 40 hours a month working New Jersey.

The plan called for buying a beater for $2k with another $2k for the liability insurance. With the relatively negligible car cost I would keep my fingers crossed to avoid accidents and breakdowns. I viewed this as a lottery with a fixed downside of $2k but a sizable upside.

With the thoughts about the actual upside I started researching into the Uber world. Shortly after I came across this discussion board. The comparison to the minimum wage and feedback about saturated market turned me cautious. I no longer itched to hunt for a beater; instead I sat down to get a clear idea about what the best case scenario would be.

This board has a number of great cost-per-mile models. These work great for the newer cars where ignoring the depreciation will make your operation unsustainable. The cost-per-mile captures the repairs, the deductibles, and the maintenance very well.

I tried these models and felt they do not work for my setup. A $2k beater arguably does not depreciate whether its miles go from 120k to 150k or if left parked five out of seven days. But the insurance expenses for the unused days add up and have to be paid for during the part-time raids. Roughly insurance expense a day goes up 5-6 times for the part-time driver.

Thus I struggled applying the cost-per-mile model to the weekend driving. Instead I needed a time-based model to account for my part-time engagement which I modeled using a day-by-day approach. The model immediately deducts the tax, the car and the insurance expenses from the daily earnings. I do this to crystallize the upside of the original bet.

You will find the link to the model worksheet below. It is a Google-spreadsheets document.

I made a number of assumptions which I kindly ask the community to challenge. These assumptions are expressed as ratios: Paid to Empty miles, Paid Miles to Paid Minutes, Number of Trips per Hour, and so on. These ratios are annual averages. When reviewing these please account for the slower days, the so-so days, as well as for those days worth bragging about.

If the assumptions would hold up I will stay away from my original bet.

Without further ado:

Version November 19, 2017
[The board requires me to have 3 posts before I can upload a link. Please can somebody PM me so I would give you the link and you would post it below my post? Grrrr...]
Here's a simple equation: 40hr/mo x $13/hr avg = $520
$520 earnings - say $60/mo for gas (if you sit at home and/or sit and wait for rides/ no pick ups farther than 4 miles =$460
$460- idk $100/mo car insurance =$360

So it will take you 6 months to break even after factoring in say $100 tags and registration too.

Probably more cost effective to use your own vehicle rather than buying a beater since you won't be putting that many miles on it and writing them off.
 

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There are a lot of factors involved with how much you will make, i didn't see your spreadsheet but where and when are you planing on driving? Are you shore rate or standard? Driving surge areas and times or no? I have to agree with not wasting your money on a beater at first, use your regular car and see how it goes then you can make the decision if it's worth it to go all in and buy a beater.
 

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Discussion Starter · #11 ·
JPell, strangely an assumption of $13/hr does not hold up due to some assumptions.

Being a new member I cannot post the link to my calculations. For the same reason I cannot PM a link. Can someone please email me at alxdriver at gmail so I could send you the calculations to post on this thread?

Basically with all the downtime included the hourly rate hovers under $7.00.
 

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JPell, strangely an assumption of $13/hr does not hold up due to some assumptions.

Being a new member I cannot post the link to my calculations. For the same reason I cannot PM a link. Can someone please email me at alxdriver at gmail so I could send you the calculations to post on this thread?

Basically with all the downtime included the hourly rate hovers under $7.00.
No offense Alex but the calculations don't matter. There are no guarantees doing rideshare. There are too many variables involved. A lot of days it's just luck.
 

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JPell, oh, so your calculations of $13/hr matter but mine of $7/hr do not. Ohhh I see how it is, I gotchu :)
Why would you consider working for $7 an hour in the first place? Maybe I misunderstood your post. At $7 an hour you wouldn't make any profit for a year. That's a zero sum scenario and after a year you're still better off doing something else.
 

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Discussion Starter · #16 ·
Gents, after carefully calculating projected earnings to average under $7 an hour I realized I will not even be starting this endeavor. This is what my posts were about.
 

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Why in the world would you do this for $7/hr? why? Based on your calculations.

Lepke? I summons you back for your classic quote.
Gents, after carefully calculating projected earnings to average under $7 an hour I realized I will not even be starting this endeavor. This is what my posts were about.
ohhhhh. Good call lol.
 

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I planned to sign up with Uber to utilize 40 hours a month working New Jersey.

The plan called for buying a beater for $2k with another $2k for the liability insurance. With the relatively negligible car cost I would keep my fingers crossed to avoid accidents and breakdowns. I viewed this as a lottery with a fixed downside of $2k but a sizable upside.

With the thoughts about the actual upside I started researching into the Uber world. Shortly after I came across this discussion board. The comparison to the minimum wage and feedback about saturated market turned me cautious. I no longer itched to hunt for a beater; instead I sat down to get a clear idea about what the best case scenario would be.

This board has a number of great cost-per-mile models. These work great for the newer cars where ignoring the depreciation will make your operation unsustainable. The cost-per-mile captures the repairs, the deductibles, and the maintenance very well.

I tried these models and felt they do not work for my setup. A $2k beater arguably does not depreciate whether its miles go from 120k to 150k or if left parked five out of seven days. But the insurance expenses for the unused days add up and have to be paid for during the part-time raids. Roughly insurance expense a day goes up 5-6 times for the part-time driver.

Thus I struggled applying the cost-per-mile model to the weekend driving. Instead I needed a time-based model to account for my part-time engagement which I modeled using a day-by-day approach. The model immediately deducts the tax, the car and the insurance expenses from the daily earnings. I do this to crystallize the upside of the original bet.

You will find the link to the model worksheet below. It is a Google-spreadsheets document.

I made a number of assumptions which I kindly ask the community to challenge. These assumptions are expressed as ratios: Paid to Empty miles, Paid Miles to Paid Minutes, Number of Trips per Hour, and so on. These ratios are annual averages. When reviewing these please account for the slower days, the so-so days, as well as for those days worth bragging about.

If the assumptions would hold up I will stay away from my original bet.

Without further ado:

Version November 19, 2017
[The board requires me to have 3 posts before I can upload a link. Please can somebody PM me so I would give you the link and you would post it below my post? Grrrr...]
Deliver Pizza
 

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JPell, strangely an assumption of $13/hr does not hold up due to some assumptions.

Being a new member I cannot post the link to my calculations. For the same reason I cannot PM a link. Can someone please email me at alxdriver at gmail so I could send you the calculations to post on this thread?

Basically with all the downtime included the hourly rate hovers under $7.00.
If you think you're going to have a lot downtime at 10/hours a week, your modeling stinks.

10 hours a week would be 10pm-3am Friday/Saturday. If you HONESTLY believe you're going to have downtime in that window, you're not a good Uber driver.

Gents, after carefully calculating projected earnings to average under $7 an hour I realized I will not even be starting this endeavor. This is what my posts were about.
If you think you'd make 7/hour at this job... I hope to God you don't work with numbers for a living.

a person who has ever worked this job thinks he knows the financial dynamics better. Special kind of stupid indeed.
 
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