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Why is his daily mileage so high? He states he makes $1.10 per mile, drives 260 miles a day, but only makes $150 a day. This implies that less than half his mi
by usaar333 11y ago
Why is his daily mileage so high? He states he makes $1.10 per mile, drives 260 miles a day, but only makes $150 a day.
This implies that less than half his mileage is being utilized. With an operating cost of about $0.22/mile (it's actually higher given depreciation from excess mileage - I'd guess it's closer to $0.3), he is probably making maybe $0.36/mile driven. (factoring depreciation, < $0.28/mile), which means his net during the year is something like $26k to $34k.
My take-aways:
1. The biggest surprise is how low his mileage utilization is. With an efficient dispatch system that Uber offers, I would have expected much higher mileage utilization -- someone shouldn't need to drive around for long searching for rides like a taxi would.
2. He needs to get a more fuel efficient car. His MPG is only 26, which hurts his bottom line.
- thwd 11y ago> Why is his daily mileage so high? He states he makes $1.10 per mile, drives 260 miles a day, but only makes $150 a day. He's not paid for the mileage spent on the way to pick up someone, only after they get in.
- jsprogrammer 11y agoOr on his way home (unless he happens to get a passenger going to his neighborhood).
- usaar333 11y agoOf course, but I'm surprised he's spending as much mileage picking people up as what he is earning driving them -- it suggests inefficiency in the dispatching system.
- anon1385 11y agoHe does say that his MPG is normally 30 when driving for himself, but becomes lower when driving rides because of all the waiting and stop starting.