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I don't think it costs anywhere near $10/hour to operate a passenger vehicle, even after insurance and maintenance.

mikeash 7y ago
Depreciation is a large cost as well. The IRS sets a standard rate of 58 cents/mile for deduction of vehicle-related expenses. There’s obviously a wide range of actual costs, but that’s in the ballpark for an all-inclusive amount. If you average 20MPH then you’ll exceed $10/hr.
- acchow 7y ago
  The IRS numbers are very generous.
  - mikeash 7y ago
    They almost perfectly match the TCO numbers from AAA. They show an average of $8,849/year at 15,000 miles/year, which is 59 cents/mile. The cheapest vehicle type they list is small sedans, which are $6,777/year or 45 cents/mile. https://newsroom.aaa.com/auto/your-driving-costs/ https://newsroom.aaa.com/auto/your-driving-costs/ It seems large because we aren’t used to looking at TCO per mile, and only think about the cost of fuel.
    - acchow 7y ago
      I meant 59 cents/mile is generous for estimating your Uber driving costs. The AAA average includes pickup trucks, which hopefully you wouldn't be using for Uber. Edmunds puts the TCO for 5 years (includes insurance and gas) for a Prius @15,000 miles/year at $30,600. That is 40.8 cents/mile. 59c is 45% higher. (This assumes you start with a brand new Prius; you may optimize better as an Uber driver)
mattkrause 7y ago
The IRS rate is 58 cents a mile (for business). A net speed of 20 mph would easily put you in that neighborhood.
hinkley 7y ago
I think it would be a good campaign to get Americans to reduce vehicle miles if we pointed out how much it costs a mile to drive the damned things. Like is it really cost effective to go to the theater on the other side of town because the tickets are $1.50 cheaper? Or this grocery store versus the other?
- smileysteve 7y ago
  Between the 2006 gas shortage and 2008 recessions, we actually started to see this. As gas approached $4 and $5 per gallon, all of sudden, TCOs were approaching $1/mile

Depreciation is a large cost as well. The IRS sets a standard rate of 58 cents/mile for deduction of vehicle-related expenses. There’s obviously a wide range of actual costs, but that’s in the ballpark for an all-inclusive amount. If you average 20MPH then you’ll exceed $10/hr.

acchow 7y ago
The IRS numbers are very generous.
- mikeash 7y ago
  They almost perfectly match the TCO numbers from AAA. They show an average of $8,849/year at 15,000 miles/year, which is 59 cents/mile. The cheapest vehicle type they list is small sedans, which are $6,777/year or 45 cents/mile. https://newsroom.aaa.com/auto/your-driving-costs/ https://newsroom.aaa.com/auto/your-driving-costs/ It seems large because we aren’t used to looking at TCO per mile, and only think about the cost of fuel.
  - acchow 7y ago
    I meant 59 cents/mile is generous for estimating your Uber driving costs. The AAA average includes pickup trucks, which hopefully you wouldn't be using for Uber. Edmunds puts the TCO for 5 years (includes insurance and gas) for a Prius @15,000 miles/year at $30,600. That is 40.8 cents/mile. 59c is 45% higher. (This assumes you start with a brand new Prius; you may optimize better as an Uber driver)

mattkrause 7y ago

The IRS rate is 58 cents a mile (for business). A net speed of 20 mph would easily put you in that neighborhood.

hinkley 7y ago

I think it would be a good campaign to get Americans to reduce vehicle miles if we pointed out how much it costs a mile to drive the damned things. Like is it really cost effective to go to the theater on the other side of town because the tickets are $1.50 cheaper? Or this grocery store versus the other?

smileysteve 7y ago
Between the 2006 gas shortage and 2008 recessions, we actually started to see this. As gas approached $4 and $5 per gallon, all of sudden, TCOs were approaching $1/mile