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The IRS deduction for business vehicle use in 2019 is 58 cents per mile. So they have effectively reduced the per mile payment to the cost of operating the veh

The IRS deduction for business vehicle use in 2019 is 58 cents per mile. So they have effectively reduced the per mile payment to the cost of operating the vehicle. Seems like they are on the verge of turning driving for Uber into a reverse mortgage for your car.

mlthoughts2018 8y ago
And quite frankly the business model might be to just bank on a steady supply of ex-criminals who have a hard time getting other work and may not understand the financial arrangement they are entering into. Exploit them for a while and when they realize they aren’t making money, just chalk it up to built-in turnover and on to the next unwitting driver.
- ehnto 8y ago
  You don't have to be an ex-criminal to have a hard time getting work and tendancy to get involved in harmful financial arrangements. I would argue, the latter at least, is the median individual.
- NeedMoreTea 8y ago
  No need of ex-criminality. Youth, inexperience, naivete, desperation will all suffice. Following the long established model used by couriers, despatch riders etc. It appears to work only temporarily until the real maintenance and depreciation costs become apparent. Not exactly an ethical base upon which to build - scamming your drivers until they realise it's effectively a scam.
- caprese 8y ago
  > Exploit them for a while and when they realize they aren’t making money Between all the happy drivers who you begin to notice are just 2 weeks in, and also knowing they are homeless while they are driving in this area makes it harder to support the service But there is also a reason they drove 100 miles from Sacramento and turned on the app.
  - hopler 8y ago
    You could tip your driver if you believe they deserve higher pay.
    - caprese 8y ago
      when I say "support" this is more about imagining whether it is a sustainable business model or not and just enjoying the luxury while it lasts
pishpash 8y ago
Which is what it should be no? Drivers are still paid by the minute on top of that, which in LA is 21 cents/minute according to the news, working out to $12.6/hour. Not quite $15 minimum wage, but close.
- tomjakubowski 8y ago
  21 cents per minute that you have a passenger in your car. With Uber, but not Lyft, you might get paid a bonus to drive some distance to pick up a passenger. But time you spend adding value to the company by working as slack capacity (and slowly burning down the value of your vehicle) isn't directly compensated.
  - pishpash 8y ago
    I guess slack capacity is the crux of the contractor vs. employee debate. While you don't get paid hourly, you also don't have to be on the job hourly. That gives you the chance/incentive to switch to other "gigs" and improve overall market efficiency. At least that's the theory.
  - hopler 8y ago
    This is an important concern but paying per mile on the clock isn't the way to solve it.
- pmorici 8y ago
  Since Uber drivers are independent contractors you need to account for the extra ~7.6% Social Security and Medicare tax they will have to pay when comparing it on a $/hr basis to w-2 jobs. If they are also paying Uber drivers for their time in addition to their per mile vehicle costs then having a per mile cost in line with the cost to operate the vehicle is fine but when I looked into it ~5 years ago they charged the rider per mile driven and per minute of standing and then gave the driver a cut of that.

mlthoughts2018 8y ago

And quite frankly the business model might be to just bank on a steady supply of ex-criminals who have a hard time getting other work and may not understand the financial arrangement they are entering into. Exploit them for a while and when they realize they aren’t making money, just chalk it up to built-in turnover and on to the next unwitting driver.

ehnto 8y ago
You don't have to be an ex-criminal to have a hard time getting work and tendancy to get involved in harmful financial arrangements. I would argue, the latter at least, is the median individual.
NeedMoreTea 8y ago
No need of ex-criminality. Youth, inexperience, naivete, desperation will all suffice. Following the long established model used by couriers, despatch riders etc. It appears to work only temporarily until the real maintenance and depreciation costs become apparent. Not exactly an ethical base upon which to build - scamming your drivers until they realise it's effectively a scam.
caprese 8y ago
> Exploit them for a while and when they realize they aren’t making money Between all the happy drivers who you begin to notice are just 2 weeks in, and also knowing they are homeless while they are driving in this area makes it harder to support the service But there is also a reason they drove 100 miles from Sacramento and turned on the app.
- hopler 8y ago
  You could tip your driver if you believe they deserve higher pay.
  - caprese 8y ago
    when I say "support" this is more about imagining whether it is a sustainable business model or not and just enjoying the luxury while it lasts

pishpash 8y ago

Which is what it should be no? Drivers are still paid by the minute on top of that, which in LA is 21 cents/minute according to the news, working out to $12.6/hour. Not quite $15 minimum wage, but close.

tomjakubowski 8y ago
21 cents per minute that you have a passenger in your car. With Uber, but not Lyft, you might get paid a bonus to drive some distance to pick up a passenger. But time you spend adding value to the company by working as slack capacity (and slowly burning down the value of your vehicle) isn't directly compensated.
- pishpash 8y ago
  I guess slack capacity is the crux of the contractor vs. employee debate. While you don't get paid hourly, you also don't have to be on the job hourly. That gives you the chance/incentive to switch to other "gigs" and improve overall market efficiency. At least that's the theory.
- hopler 8y ago
  This is an important concern but paying per mile on the clock isn't the way to solve it.
pmorici 8y ago
Since Uber drivers are independent contractors you need to account for the extra ~7.6% Social Security and Medicare tax they will have to pay when comparing it on a $/hr basis to w-2 jobs. If they are also paying Uber drivers for their time in addition to their per mile vehicle costs then having a per mile cost in line with the cost to operate the vehicle is fine but when I looked into it ~5 years ago they charged the rider per mile driven and per minute of standing and then gave the driver a cut of that.