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If they’re driving for Lyft or Uber in the UberX/Standard Lyft category, they are arithmetically challenged. Or perhaps in a new market where the economics are

If they’re driving for Lyft or Uber in the UberX/Standard Lyft category, they are arithmetically challenged. Or perhaps in a new market where the economics are “throw money at anyone who will drive”. In an established market, the economics of driving for Lyft turn out to be worse than minimum wage, and and continued participation is reinforced by magical thinking about hitting that jackpot - Prime Time.

prepend 9y ago
I live in a top 10 city. I get about 50-75 cents per mile net before bonuses and whatnot. Now if you look it at a straight business this is terrible as the standard mile deduction is 53.5 cents per mile. So sometimes you technically lost money just by driving. However, my car payment is fixed. I didn’t buy a new car for Uber. My marginal costs are quite low at about 5 cents/mile in gas and 12 cents/mile in extra wear and tear. My insurance difference is negligible because I don’t drive that much. So I have coats of 20 cents and make between 30 and 55 cents per mile. This is especially good for taxes as I get to deduct 53.5 cents per mile even though my costs are much lower. So I net about $10/hour after expenses and taxes. That’s not bad for an extra 10-20 hours per week whenever I feel like it. My arithmetic is certainly different than others as there’s lots of variables, but certainly not challenged with my math. I think different people just value their time more. But having the option to make $10 whenever I have free time is better than watching tv or whatnot.
- jbattle 9y ago
  Your car payment is fixed, but you are likely to need to replace the car X months/years sooner if you put miles on it more rapidly. So the question isn't whether you need to spend extra on your current car because of Uber, its whether you'll need to spend more on future cars (i.e. buy one sooner)
  - prepend 9y ago
    That’s the 12 cents per mile in depreciation. This is maintenance, warranty costs, earlier wear out, etc. So far this hasn’t resulted in any real costs, just depreciation from the miles so it’s getting saved away for exactly my next car. It’s odd how many people I have to go through this math with. I guess people can’t break out the different expenses. Again, cars vary so if you have a high cost car rather than Prius it will be harder. It can theoretically be less than minimum wage, but even so. There’s no minimum wage that lets me work between 0-20 hours a week and take off as many days as I want, whenever I want. That’s why it’s cool for part time. But using it as your primary income is much different. But I’d rather do it than work retail.
- jhayward 9y ago
  > However, my car payment is fixed You are missing depreciation. Those miles aren't free, in capital cost.
  - prepend 9y ago
    I think my original comment wasn’t clear enough. My car depreciated at 12 cents / mile. This includes depreciation and maintenance. I described it as “wear and tear” but three didn’t people didn’t understand so I need to explain better.
- CodeWriter23 9y ago
  So, less than minimum wage when the time for the big repairs comes. Clutch / transmission / brakes / struts. Perhaps batteries if you’re in a hybrid. And let’s not forget that accident, not your fault of course, that is much more likely with the increased mileage. And don’t forget to factor in that underinsured driver who hits you.
  - prepend 9y ago
    “12 cents/mile in extra wear and tear.” Your scenarios are all built into my cost model. And since I don’t realize the depreciation until I sell the car or fix a clutch/battery/whatever so far it’s just piled into a saving account getting ready. $10 could be less than minimum wage in a few areas, but for most of the country, and my area it’s a few bucks higher.

prepend 9y ago

I live in a top 10 city. I get about 50-75 cents per mile net before bonuses and whatnot. Now if you look it at a straight business this is terrible as the standard mile deduction is 53.5 cents per mile. So sometimes you technically lost money just by driving. However, my car payment is fixed. I didn’t buy a new car for Uber. My marginal costs are quite low at about 5 cents/mile in gas and 12 cents/mile in extra wear and tear. My insurance difference is negligible because I don’t drive that much. So I have coats of 20 cents and make between 30 and 55 cents per mile. This is especially good for taxes as I get to deduct 53.5 cents per mile even though my costs are much lower. So I net about $10/hour after expenses and taxes. That’s not bad for an extra 10-20 hours per week whenever I feel like it. My arithmetic is certainly different than others as there’s lots of variables, but certainly not challenged with my math. I think different people just value their time more. But having the option to make $10 whenever I have free time is better than watching tv or whatnot.

jbattle 9y ago
Your car payment is fixed, but you are likely to need to replace the car X months/years sooner if you put miles on it more rapidly. So the question isn't whether you need to spend extra on your current car because of Uber, its whether you'll need to spend more on future cars (i.e. buy one sooner)
- prepend 9y ago
  That’s the 12 cents per mile in depreciation. This is maintenance, warranty costs, earlier wear out, etc. So far this hasn’t resulted in any real costs, just depreciation from the miles so it’s getting saved away for exactly my next car. It’s odd how many people I have to go through this math with. I guess people can’t break out the different expenses. Again, cars vary so if you have a high cost car rather than Prius it will be harder. It can theoretically be less than minimum wage, but even so. There’s no minimum wage that lets me work between 0-20 hours a week and take off as many days as I want, whenever I want. That’s why it’s cool for part time. But using it as your primary income is much different. But I’d rather do it than work retail.
jhayward 9y ago
> However, my car payment is fixed You are missing depreciation. Those miles aren't free, in capital cost.
- prepend 9y ago
  I think my original comment wasn’t clear enough. My car depreciated at 12 cents / mile. This includes depreciation and maintenance. I described it as “wear and tear” but three didn’t people didn’t understand so I need to explain better.
CodeWriter23 9y ago
So, less than minimum wage when the time for the big repairs comes. Clutch / transmission / brakes / struts. Perhaps batteries if you’re in a hybrid. And let’s not forget that accident, not your fault of course, that is much more likely with the increased mileage. And don’t forget to factor in that underinsured driver who hits you.
- prepend 9y ago
  “12 cents/mile in extra wear and tear.” Your scenarios are all built into my cost model. And since I don’t realize the depreciation until I sell the car or fix a clutch/battery/whatever so far it’s just piled into a saving account getting ready. $10 could be less than minimum wage in a few areas, but for most of the country, and my area it’s a few bucks higher.