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Why Uber Is A Rip-off – Math Points out





Okay so I was hunting at this graph set on Uber’s web page today and assumed it seemed as well good to be genuine. How incredible that Uber drivers make a lot more than any other variety of driver.
But I realized from my possess knowledge as a rider that Uber didn’t expense that a great deal. In actuality, Uber is pretty inexpensive if you are a passenger.
Sooooo…. how can uber be so inexpensive, and nonetheless the drivers make so a great deal income???

Now Uber has slice pay to drivers in Detroit to 24cents a mile , but we’re going to adhere to the 90c for now.

Uber can take 20% of the overall fare from the driver for older drivers. More recent drivers get twenty five% taken.

So we’re down to sixty seven.5c for each mile.

Then you have to deduct tax:
In some LA County’s, product sales tax is as substantial as 10%, and Uber does not withold taxes for you. The drives are dependable for trying to keep this income apart to pay the tax department in April.

So with the 10% deducted, we’re down to (just about 60 cents) 60.75c

Now we need to issue in depreciation of the motor vehicle. A motor vehicle is an asset like everything else, and will ultimately wear out and you will have to acquire a new a person. Every single mile you drive decreases the benefit of your motor vehicle and provides you that a great deal closer to needing a new a person. This is a huge issue if you drive for a living, you are going to need to acquire a new motor vehicle just about every two or three years and the expense of a new motor vehicle is important.

The IRS estimates auto expense to drive a auto for perform at $.fifty four a mile .
Damaged down into
Gas costs @ an regular of 12c for each mile
Depreciation at $.24c for each mile.
Repairs, tyres, & maintainence at 9c for each mile
Coverage, licence, registration, finance, service fees – regular out to about 9c for each mile

So with 54c depreciation, repairs, and gas accounted for, we’re down to just about 6c for each mile that truly goes into your arms of drivers.

Provided that Uber also asks its drivers to acquire items like bottles of drinking water, gum, and chargers for it is travellers, we can say for specific that driving for Uber pays well below bare minimum wage or even even worse, costing drivers income (as is found specifically in this true fare uber billed a person of it is drivers).

So presented the math is so poor, why does anyone drive for Uber?
Here’s an illustration of a submit an Uber driver posted – he was $four hundred behind on the lease, and required to make up some rapid hard cash. In a way, uber is form of like a financial loans plan.

Now for some men and women in determined circumstances, what Uber’s presenting could possibly be an satisfactory deal. But for most men and women, driving for Uber is a squander of time. I wish Uber would be a lot more honest with men and women. By our calculations, the amount of money you are earning as an uber driver is nowhere close to $19 for each hour. If you drive 30 miles for each hour at 6.75c for each hour, you are only earning $2.00 for each mile – by considerably the worst preference of any transportation position.

This amount is supported by Not Amazing Uber, who have tracked hourly earnings to be about $2.89 and, following auto service fees are taken into account, $.

Now – I’m not in opposition to motor vehicle pooling. We all need transportation, and I know I am a regular consumer of Uber & Lyft. But I assume that Uber is going about it in an unethical way, which tends to make me unethical for supporting them as a buyer.

Uber could quickly resolve this predicament : by cutting down their commission, by earning costs a lot more fair, by offering riders the option to Suggestion their drivers, or just by being transparent. But that would imply admitting that they’ve created important income from efficiently exploiting their drivers. So the truth of the matter is, Uber positive aspects from keeping this standing quo. Uber is currently claimed to be earning $10 billion in income for each year – and that income has to arrive from anyone.

Just really do not allow that anyone be you.

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This video clip is presented by Jayde Lovell, generated and edited by Janina Soriano, at Youtube Space NYC.

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47 comments

  1. Hundred percent this is true

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  2. I got 3.50 a mile rates with a $500 cab. Uber is charging too little for their fares, especially for their carpool rates. Uber is still in their taking over the market stage. Uber wants to put all cab companies out of business so they can rule the market.

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  3. this women is not legit. 24 cents per mile in detroit lol. I drive in detroit it is not 24cents per mile. By the way everyone who works a regular day job has to pay taxes also, they also drive to work, and put miles on their car. The difference is uber drivers get reimbursed

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  4. I'm just another cab co. he put out of business

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  5. This is such bs, only to be expected by TYT. First of all, only an idiot buys a new car to do this. Secondly, her claim that they're "making $10 billion per year" is also nonsense. She also fails to mention that that $0.54 per mile IS ALSO A TAX DEDUCTION. And lastly, she makes no mention whatsoever about the extra money made during surges, which last Saturday night went up to 4.9 in Kansas City. TYT apparently isn't wrong about just politics.

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  6. I saw an Uber commercial before this

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  7. I don't know about any of you but I think it's funny that I had an Uber ad before this video

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  8. Please bring math to Uber Eats

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  9. Made the worst mistake. Heres the math.Uber Eats. 6 hrs 15 min $51.50. Uber fee $18.30My pay$33.20 no tips. Please if you have a monther dont sighn up. I want to file a lawsuit. Anyone has ideas.They had false information

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  10. You make some good points, but my major complaint with Uber is their policy on tipping. For whatever reason, the vast majority of Uber riders do not tip. If the riders tipped Uber drivers like they traditionally tipped taxi drivers then Uber drivers would be getting fairer compensation for the job. This is also compounded by the fact that the Uber rating system does not reward drivers who traditionally receive high ratings. Uber could well afford to have a 15% increase in fares and still be substantially cheaper than taking a taxi. They should then take the proceeds of that 15% increase and distribute it to their drivers based on how they are rated by the riders. This would improve service and help the drivers make a livable wage.

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  11. I agree driving for Uber X is not profitable.
    I drive for Uber Black Car and Uber Select in Atlanta along with being a full time chauffeur. Uber pays my LLC not me personally. I'm a sub contractor and can write off most of the expense of using a car as a business including bottled water, mileage , etc etc. Uber X is way too cheap but Uber Select is double Uber X and Uber Black Car( which Uber is fazing out) is triple what Uber x pays. You have to have a nicer more expensive car than Uber X but I had that anyway being a chauffeur. I use Uber Select(aka Uber Lux) and Uber Black Car to give me supplemental income when I don't have a prearranged trip scheduled. I will admit that because Uber X is so cheap that people are using Select and Black Car less than before but I don't do it full time and it's busy enough to help me fill in gaps for when I don't have a client scheduled.

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  12. Time = Money and In life a Job pays you for your TIME and this is a Waste of a persons time unless you are sad, alone and have no real job. How much is your time worth? And I the added stress of driving or dealing with these people worth it?  And Uber does nothing but have a computer connect the two parties and they get 25% which seems allot compared to most jobs. A real Estate manager makes 10% of rental property, a real estate agent makes 4-7% of sale, even a waitress makes 10-20% of sale if they are lucky and good. And what if an accident or breakdown happens?  Good Luck on all that as Uber is sounding like a ripoff and the poor Taxi driver is out of business.

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  13. I have been an Uber driver for over three years. I have been a paid lobbyist for one day in 2014 for Uber in California Congress. I was featured in a local alternative newspaper when Uber was just getting going here.
    These and more are my credentials. So when I say Uber is one of the most unethical companies I have been associated with know I have the experiences to say so. I have been screwed by Uber a number of times. But I am working on building my own tour guide business so it gives me a way to meet tourists in the mood for tours. They never actually did pay me for going all the way to Sacramento and talking nice to legislators on their behalf. My local Uber manager got frustrated with their BS that he paid me from his personal bank account and then expensed it to Uber.
    With my background with Uber I actually had to live in my car for a couple months last year when they suddenly slashed our rates. I had a stroke that my doctor told me had to do with working way too many hours. And on and on…

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  14. they are just waiting for self driving cars' era!! That was their strategy from the beginning!

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  15. Uber didn't generate anything! In 2016 they lost $3 Billion dollars! How does that happen and a company stay in business?

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  16. I was an uber driver for 6 mouths. What a scam.

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  17. got an uber ad

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  18. What is a cwaaawwa? She's not trying to say car is she?

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  19. A car is not an asset. It's a liability

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  20. you can write most this off as tax

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  21. Did you suck at it and had to comment? Depends on where you live.

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  22. Ok, in VANCOUVER a taxi license costs $100,000 – you read that correctly. Subtract the cost of leasing the car from your daily earnings and the taxi companies take from your receipts you are left with less than minimum wage.

    It's easy to criticize but your criticism becomes less biting when it's presented with a balanced argument.

    Autonomous taxis will be arriving between 5 and 10 years – don't turn this into a career.

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  23. As an accountant this math is totally on point. SCAM!

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  24. Driving as an occupation generally draws in the lazy.

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  25. that's right UBER is an scam, and all those motherfuckers of UBER starting with the CEO should be in jail for fraud and corruption.

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  26. Absolutely right … I drove 145k with uber and my net was $6789 at the end. bought 22k used car and am in debt! I drive only during surge price. wake up people.

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  27. Uber exploits drivers. Everyone should know that. When that Uber driver picks you up, he hates you because you are complicit in his exploitation.

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  28. a friend of mine has been driving for Ubber for several years now and i have seen his personal checks. and he isn't making as little as you are trying to say. he makes enough to live comfortably

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  29. It's BS and you can tip bring money with you

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  30. fuck uber. greedy scum.

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  31. stop using Uber to be ethical

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  32. no video here

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  33. I write off everything 100%

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  34. 10.25%

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  35. I think this video must have been made by taxi companies lol. Yes I believe Ubers base fair is too little. No it is not going to make you rich. But you neglected to mention the surges that you can hit and make as much as 5 or 6 times that rate… I have made $180 in just 6 hours and used less than 20 in gas. That's Uber X on a good Fri or Sat night in the right places. But no on a Wednesday afternoon at 1 pm I'm not going to make that. I would it's far from a scam. But I do not tend to drive unless there is a surge fair.

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  36. The money the customer pays is different from the driver's screen, he gets the deduction from the Uber screen. But Uber charges the customer more and you do not see the real money that the coustumer paid

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  37. Although the numbers are wildly off-base, UberX is, indeed, just a way of taking equity out of the value of your car and putting it in your, Uber's and the gasoline companies' pockets. Not only do the mechanics of Uber Pool make any above-minimum wage income impossible, they can—and frequently do—cost the driver money.
    With UberSelect or UberXL or Lyft (no mandatory Pool rides), you could certainly get by, but there are easier ways to make a modest living than driving 12-13 hours a day.

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  38. Almost every uber driver I have gotten has zero knowledge of local landmarks, streets, and businesses, they make annoying small talk and ask for 5 stars, oh and they frequently cancel pick ups before they arrive. Uber is to taxi drivers as Nero is to Italian coffee.

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  39. You are confusing sales tax with income tax

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  40. I wouldn't be surprised if the Uber graph is over exaggerated.

    FACT CHECK
    Your "math" is obviously and pathetically inaccurate and I suspect that your analysis is agenda driven – SHAME on you for being associated with the incredibly biased Young Turds!

    I know others have mentioned the obvious inaccuracy of your analysis by leaving out deductions. This doesnt offset the driver overhead completely but it is DEFINITELY a factor.
    I noticed that the additional licensing costs of other transportation workers was also not factored in. Licensing and additional insurance is a SIGNIFICANT cost (Taxi, Trucker, etc) for other transportation workers.

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  41. you forgot to add in cost of smart phone and fees, which is mandatory for uber drivers

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  42. Über is model for self driving cars only not for drivers

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  43. 5:00 über stole 10 billion dollars from drivers worldwide,not to mention drunk customers use bad rating Instead of tip,not to mention abusive passengers sometime attack drivers out of their muddle heads on top of 6 cents

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  44. I have a friend who drove for Uber and he lost money, its a scam

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  45. Uber is a scam becaaaaaaause….because you thought he loved everyone with toy phones and pre rolls and flip flop bikini clad sixty plus lesbians until you saw his recent video where he reveals he is shrewd business person not political herb tool….purd.

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  46. I do uber eats as a side job. I use my uber debit card for my earnings, but my surge bonuses go into my regular checking account on Wednesdays. I use the uber debit card for gas all the time. It's not just the gas I use
    Doing uber, it's my personal gas too. I put car maintenance on that uber debit, too. And I still have enough to shop with it and pay some bills. I got to deduct a lot of things that I'd normally not get to deduct, like mileage, maintenance, half of my cell phone bill, etc. I'm a single parent so my tax refunds are usually about 4K. This past year, about $300 and something was taken out of that 4K, so I still got a pretty hefty refund. And I don't buy "new" cars anyway. My mechanic almost always has cars for sale cheap that he rebuilt the engine or transmission on. That's what I have now, a nice used Acura. Uber has totally come in handy for me as a customer when I took the car in for some auto glass work, new tires, and o e other thing. I didn't want to sit around in those repair places so I took uber to the mall to get stuff done and even used it to pick up my daughter from school. I'm really grateful for uber. It's needed. And for a single parent like me with a main job, having a side income where you can literally work whenever you want is a total godsend.

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  47. You gotta be pretty lame to trust anything affiliated with the young turks.

    Reply

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