4 ms·
the drivers don't really benefit that much, because after you subtract the cost of the purchase of a suitable car, repairs/maintenance, tires, fuel and so on to
by walrus01 4y ago
the drivers don't really benefit that much, because after you subtract the cost of the purchase of a suitable car, repairs/maintenance, tires, fuel and so on to calculate the fully loaded cost per mile of operating a lyft car for several years, the wage remaining for the driver (after subtracting the US income tax as a 1099) is often under the minimum wage (and far under the living wage) in many major metro areas. Using Seattle as an example and its $15/hr minimum wage.
- aetherson 4y agoIt's a strong labor market. Nothing stopping lyft drivers from getting jobs in food service or warehouses or a variety of other jobs that have few requirements to qualify for.
- walrus01 4y agoI think there's a big reliance on the part of these employers in recruiting and retaining employees who are either less literate, less informed, more gullible, or more servile than the average service industry worker.
- AYBABTME 4y agoYou don't need a work visa to drive an Uber.
- aetherson 4y agoIs that in fact is a major differentiator between lyft/uber driving and other jobs (I'm dubious), then it sounds like a major and useful advantage of the platform that is reasonably worth paying for, albeit also one that is fragile.
- black_13 4y ago
- WalterBright 4y agoIf it didn't work for them, they wouldn't drive.
- missedthecue 4y agoAccording to various online calculators, the average operating cost for a Prius is about $0.11 per mile. Includes fuel, depreciation, repair, maintenance, etc... Uber drivers are doing way better than $0.11 per mile.
- walrus01 4y agoI am extremely skeptical of that calculation because a Prius costs $30,000 or more now. Maybe operating cost but not fully loaded cost including something like a 48 to 60 month car loan.
- missedthecue 4y agoAcquisition cost of the car is only a consideration if you bought a Prius solely to Uber. If you bought it because you want/need to own a vehicle, and you use it to Uber as well, the depreciation is the relevant factor.
- walrus01 4y agothe overall lifespan in miles or km of the car until it's used up and has almost no resale value is a consideration, if you put 200,000 km on a car doing city driving as an uber, that's consuming a considerable portion of the original total purchase price of the car. 11 cents a mile comes nowhere close to account for that, as reflected by the fact that the IRS mileage reimbursement rate for use of personal vehicles for business purposes is presently 58.5 cents per mile.
- missedthecue 4y agoIRS allotment is famously generous. Depreciation in the figure I provided accounts for the resale value dropping with mileage. If you drive 200,000km for Uber, you're making tens of thousands of dollars.
- plorkyeran 4y agoThat number is very obviously incorrect. Fuel prices alone are currently close to $0.11 per mile for a brand new Prius getting the manufacturer's estimated MPG (58/53). Even if you assume fuel prices at half of what they currently are and zero expenses other than the upfront cost of the car and fuel, it would take 500k miles to hit an amortized cost of $0.11 per mile.