Who doesn’t have an Uber story that they want to share? Uber is the collaboration of a billion dollar app and the common man who is looking to make a buck. The experience of getting into a car with someone you’ve never met before is both exhilarating and terrifying.
For people who read this blog who have never used Uber, it’s a service where regular Joe’s drive you from point A to point B. It’s about 50% cheaper than a taxi. Amazingly every Uber driver I talk to says how easy it is to make money and I’m not sure they consider wear and tear on their vehicle, gas, and taxes for the revenue they are bringing in. Here is an actual example:
For 12 minutes this driver made $6.69. To get an hourly rate we’ll multiply by 5 and we’ll see that Adrian is making upwards of $30 dollars an hour. That’s about 60k a year. He’s going to be rich!
Of course this is not the case as Uber take 25% of the fare. So now our $30 dollars an hour is down to $22.5. There is also a $1.65 rider fee which goes to Uber. Now we’re closer to $20 an hour before expenses. Gas and mileage probably reduce this number a bit further but it appears the typical UBER driver can make around 20 dollars and hour BEFORE taxes. Here’s a good website if you’re curious for more details.
How much Uber drivers make was not the main part of my post but I got caught up in it because I was curious myself. What inspired me to write this post is that, from my experience, Uber drivers are flat out bad drivers. This one white woman was telling me how good of a driver she was as she proceeded to make a right turn on red, WHILE AN ONCOMING CAR WAS GOING THROUGH THE GREEN LIGHT. My guy last night almost clipped his mirror by an inch as he tried to sneak in this tiny lane to make a turn. I have to say that cab drivers are flat our better drivers.
Don’t get me wrong, I like Uber. That same 6.69 fare was $15 in a cab when the driver didn’t have change for my $20. I’ll also say you’ll get a range of drivers who take being an Uber driver seriously (clean car would be my main thought to taking it seriously) and guys who have a jalopy just trying to make a buck. Here’s a quick pro con list:
Pro
- Cheaper
- GPS App that picks you up where you want
- The driver rating system seems to work well
Con
Ordering the Uber and watching the driver drive to you in the worst way possible- Moronic people who shouldn’t be drivers
- Some drivers flat out aren’t professional and will talk on their Bluetooth, through the speakers, to their friends (this has happened to me multiple times) using absurd language
- No one has any idea if tipping is appropriate
What’s everyone’s experience?
I always tip unless they are horrible drivers or dont navigate correctly. Still ends up being cheaper than a cab, even before cab tip. Other than one driver falling nodding off and coming within an inch of hitting a median on 76, I haven’t had any major probs.
As a whole, buying a car is a terrible investment. As soon as you “own” it, whether it changes hands or you are purchasing it new, the car loses a crazy amount of value.
Using Uber as a customer is awesome but being an Uber driver is not worth it. As a rule of thumb, “the driving cost per mile” is around 57 cents (that’s what work reimburses me for miles driven). You calculate that into an “hourly” Uber wage and you’re not making much.
If gas goes up you’re making even less. Oil changes, tire replacements, tolls. They add up over time. Uber drivers may think they’re making a shit ton of money but don’t calculate that the $2000 job to replace their transmission or $50 for an oil change every month wouldnt be happening if they weren’t putting those miles on their car.
Uber is a genius idea because the company is more interested in the Uber driver’s car than the actual driver. A driver’s time and work are valuable to Uber but the most IMPORTANT thing to them is essentially “leasing” the cars from these drivers. That’s how they make their money. They dont have to pay for a fleet or worry about managing a fleet like a taxi service or any other form of transportation such as buses or trains, they just use other people’s.
Being an uber driver here and there to make a buck could be worth it but “being an Uber driver” is dumb, unless you have no other options.
When do you start?
As I understand as well, personal auto insurance does not cover accidents, medical or liability when operating as an UBER. As soon as someone operates as a “taxi” service, the insurance company requires commercial insurance to cover any liability. So, if your driver gets into an accident with you in the vehicle, very little chance your medical bills are getting covered outside of your own personal insurance.
Don’t forget, there is a reason that this is not a lucrative & high paying job opportunity. These drivers have a really hard time differentiating from one another and ultimately they possess a skill that any 16yr old with half a brain can have….knowing how to drive a car and having a license. Not that valuable.
I have always stood by the idea that Uber drivers who tell me they are making a killing would not be good business partners. I also rarely tip sober unless something is exceptional. I got really pissed off at how they make it seem like there is no need to tip, but it feels like you should, so I just said f*ck this and never looked back. It feels good