Uber/Lyft Driver still fails to understand basic economics

Kinja'd!!! "B_dol" (bdolan40)
10/09/2019 at 10:31 • Filed to: None

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If driving pays you $290 a week yet you get a flat tire at the cost of $430 you lost money. Do people really not understand the value of their own time and wear/tear on a car?


DISCUSSION (60)


Kinja'd!!! CarsofFortLangley - Oppo Forever > B_dol
10/09/2019 at 10:41

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People are idiots most of the time


Kinja'd!!! E90M3 > B_dol
10/09/2019 at 10:43

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I read part of that article this morning, I say part because they were talking only about hourly rate BEFORE any associated costs of driving. That’s the equivalent of a stock being up 5% from yesterday, but still being down 50% from when you bought it; you’re in the red. 


Kinja'd!!! E90M3 > CarsofFortLangley - Oppo Forever
10/09/2019 at 10:44

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50% of the time 100% of the time you’re right. 


Kinja'd!!! Future next gen S2000 owner > B_dol
10/09/2019 at 10:44

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Do people really not understand the value of their own time and wear/tear on a car?

No.


Kinja'd!!! jimz > B_dol
10/09/2019 at 10:44

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he’s probably leaving it out because the flat tire didn’t occur while he was “on duty” for either service. 


Kinja'd!!! fintail > B_dol
10/09/2019 at 10:49

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Reads like a paid propaganda piece, hard to believe in this day and age lol


Kinja'd!!! Ash78, voting early and often > B_dol
10/09/2019 at 10:49

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Is he getting flat tires every week? Maybe he needs to consider $15 per tire for road hazard coverage? 


Kinja'd!!! Bman76 (hates WS6 hoods, is on his phone and has 4 burners now) > B_dol
10/09/2019 at 10:50

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Nope, nor are they willing to accept that both Uber and Lyft are massively unprofitable venture capitalist schemes which are ultimately unsustainable at all levels.

I’m hoping the drivers can successfully unionize and sink the whole thing.


Kinja'd!!! vondon302 > B_dol
10/09/2019 at 10:53

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Still better than strike pay.


Kinja'd!!! PS9 > B_dol
10/09/2019 at 10:53

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That’s quite a lot for one flat tire. Unless he’s sporting Michelen Sport Cup 2s, an economy tire on a small vehicle should put him way under $100 out the door. Even a premium 75k mile tire shouldn't be over $150.


Kinja'd!!! facw > B_dol
10/09/2019 at 10:54

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I assume he’s not getting flats all the time though, so hopefully the cost of the repair (which seems ludicr ously expensive?) is amortized across a longer time (and of course it happened while not driving for Uber/Lyft, so he was stuck with that regardless).

I was also curious about the car seat thing. Apparently they have options where you can request a car with one for an extra fee. I know in some places they aren’t required in taxis, but given that those laws are clear handouts to the taxi industry at the expense of public safety, I’d imagine they mostly don’t apply to ride shares, unless they were written broadly to start with.


Kinja'd!!! AntiSpeed > B_dol
10/09/2019 at 10:55

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This article feels a lot like paid content. It’s just so over-the-top sunshine and rainbows.

I worked an app-based job delivering groceries for a few months and while I would recommend it for someone looking for a part-time job, it definitely had some issues, not the least of which was them using a back handed payment scheme to steal our tips.


Kinja'd!!! The Ghost of Oppo > B_dol
10/09/2019 at 10:55

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I’d also point out the words “tax” or “1099” do not appear anywhere in the article.    


Kinja'd!!! functionoverfashion > B_dol
10/09/2019 at 10:58

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He worked 14 hours, traveled 291 miles, made $257.34 in gross pay.

Subtract 291 x .58 for mileage on the car (standard reimbursement rate) so $257.34 - $168.78 = $88.56. Minus gas $13.22 that’s $75.34. For 14 hours of work that’s $5.38/hr but that doesn’t count the tire repair of course.

As for the $430 on tires, he did replace all four. Let’s look at just one, since only one was actually damaged, the others were replaced because I guess he felt like it was close enough. $430/4 = $107.50, so he is actually down $32.16 overall.

Math is hard.

edited to add - even if you consider the cost of the tire to be irrelevant because clearly it will last a long time and serve him personally in his own use of the car, he’s making less than minimum wage

[this is NOT a knock on you at all, but on the driver, in case that’s not clear!]


Kinja'd!!! B_dol > AntiSpeed
10/09/2019 at 10:58

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Bingo - it doesn’t even pass a cursory BS test. 


Kinja'd!!! Neil drives a beetle and a fancy beetle > B_dol
10/09/2019 at 11:03

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I would have liked to see a better breakdown. In fairness about the tires, those will last him probably 1-3 years; he should really have an estimated cost of the car , maintenance, and gas per mile. His gas costs were really low and maintenance is probably low as well.

I think from the perspective of the writer he was going to get new tires for his personal use anyways; but that ignores the fact that he’s putting an extra 15,000 miles per year on his car to make the money.


Kinja'd!!! promoted by the color red > B_dol
10/09/2019 at 11:04

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H e chose to replace all his tires and perform an oil change for $430. A patch or even a single replacement tire would have been a lot less.

But otherwise yes, it’s not a winning proposition if you consider the average rideshare driver seems to only alternate between full throttle and panic braking.


Kinja'd!!! merged-5876237249235911857-hrw8uc > B_dol
10/09/2019 at 11:04

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Nevermind, the comment was made with the proper math by fort Langley.  I had my rates out of whack.


Kinja'd!!! merged-5876237249235911857-hrw8uc > functionoverfashion
10/09/2019 at 11:08

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The fuel cost is calculated into the $.58 rate too. And the tires are part of that rate as well.

88.56 / 14 hours = $6.32, which is still not much better.  


Kinja'd!!! B_dol > functionoverfashion
10/09/2019 at 11:15

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I did not have the energy to do this but that is awesome! That number seems to fall in line with articles that have been more critical of the services.


Kinja'd!!! Rusty Vandura - www.tinyurl.com/keepoppo > B_dol
10/09/2019 at 11:16

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Prostituting their automobiles, they are. I own a ‘91 Corolla, which would be an appropriate car for delivering Amazon.

Missus and I took an Uber/Lyft home from the airport a few weeks back and the driver drove like a maniac.


Kinja'd!!! Rusty Vandura - www.tinyurl.com/keepoppo > CarsofFortLangley - Oppo Forever
10/09/2019 at 11:17

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Of course they are! If they weren’t, we wouldn’t have Oppo.


Kinja'd!!! Rusty Vandura - www.tinyurl.com/keepoppo > Future next gen S2000 owner
10/09/2019 at 11:17

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Prostituting their automobiles.


Kinja'd!!! HFV has no HFV. But somehow has 2 motorcycles > B_dol
10/09/2019 at 11:18

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So 19/hr minus gas, tires, oil changes, regular maintenance, and incidentals. Plus many people have a second car just for driving, Altho I assume those people do it full time.  

For comparison I make about 18/hr,  on average, delivering pizza but I use a company car.    


Kinja'd!!! Rusty Vandura - www.tinyurl.com/keepoppo > fintail
10/09/2019 at 11:18

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That’s been the refreshing thing in recent months and years: a dearth of propaganda.


Kinja'd!!! Rusty Vandura - www.tinyurl.com/keepoppo > facw
10/09/2019 at 11:19

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The entire construct is bollix . You have to have a newish car and if you think you can do that gig and net more than $10/hr, you’re probably kidding yourself.


Kinja'd!!! For Sweden > B_dol
10/09/2019 at 11:20

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The sharing economy has revealed that people really, really do not like traditional employment.


Kinja'd!!! B_dol > Rusty Vandura - www.tinyurl.com/keepoppo
10/09/2019 at 11:21

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Unfortunately I think the quality of drivers has deteriorated as ride sharing has increased. When it first came out all my experiences were top notch - lately I have experienced distracted drivers, poorly kept interiors and lots of driver phone conversations (just like a real taxi hah)


Kinja'd!!! facw > Rusty Vandura - www.tinyurl.com/keepoppo
10/09/2019 at 11:26

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Yeah, I mean you can do it in a car that’s a decade old, but even then maintenance might get you. Still I shuddered when Uber started trying to sell people brand-new cars to drive for Uber, that seemed like a sure way to eat basically all of the driver’s income.


Kinja'd!!! jimz > For Sweden
10/09/2019 at 11:39

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no, it shows they’re easily suckered by the promise of “easy money” and don’t fully understand the economics of their “gig” work. 


Kinja'd!!! ranwhenparked > facw
10/09/2019 at 11:40

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And Uber imposes age limits on cars, too, with an exception for Lincoln Town Cars. 10 years might be the max you can use, if not less.


Kinja'd!!! DipodomysDeserti > For Sweden
10/09/2019 at 11:40

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Right, that’s why Uber drivers haven’t been suing Uber in order to be classified at employees...

Only thing it’s revealed is that most Americans are cheap assholes, which people in the restaurant industry already knew.


Kinja'd!!! facw > ranwhenparked
10/09/2019 at 11:41

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Here in Boston Uber’s limit is 15 years, but I think they vary that between cities. 


Kinja'd!!! For Sweden > DipodomysDeserti
10/09/2019 at 11:41

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If they want to be employees, trucking companies are desperate for drivers


Kinja'd!!! ranwhenparked > facw
10/09/2019 at 11:46

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Well, you can still run a 2004 Camry then, probably the best way to maximize whatever profit there is to be had. 


Kinja'd!!! Sammyno55 > For Sweden
10/09/2019 at 11:47

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I never understood that if you wanted to drive and were looking for a driving job, why go to Uber/Lyft? Nearly every semi truck  I pass has a job offer on the trailer. Most even offer training with a short employment contract.


Kinja'd!!! For Sweden > Sammyno55
10/09/2019 at 11:50

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I think the training requirement is the barrier; a small barrier seems insurmountable to some people.

I had a front-page discussion with someone who claimed to have lost their job at a some kind of shop in Michigan. I suggested he try for an Airframe & Powerplant maintenance certificate; that industry is booming. He rejected the idea because the closest A&P school was at a community college about 30 miles away.


Kinja'd!!! functionoverfashion > merged-5876237249235911857-hrw8uc
10/09/2019 at 12:07

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Ah, good to know. I actually did it that way at first, but then thought “oh wait gas” - anyway... $6.32/hr isn’t great unless you’re lonely and I guess that’s cheaper than going to a bar. 


Kinja'd!!! Nick Has an Exocet > AntiSpeed
10/09/2019 at 12:09

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Yes, this is a bullshit article.s

 Same with the other 2 posted under his contributor account.

Kinja'd!!!


Kinja'd!!! Rusty Vandura - www.tinyurl.com/keepoppo > B_dol
10/09/2019 at 12:10

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I use ride sharing but rarely.


Kinja'd!!! Rusty Vandura - www.tinyurl.com/keepoppo > facw
10/09/2019 at 12:14

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I’ve only ride shared about five times and then, for entertainment as much as for convenience. It’s a crazy scheme.


Kinja'd!!! DipodomysDeserti > For Sweden
10/09/2019 at 12:31

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Do you actually know any truckers? The ones I know also work as contractors because trucking companies have stopped hiring them as employees. Some still do, but it’s been a problem in trucking for a while. Trucking is what gave Uber/Lyft the idea they could do this.


Kinja'd!!! fintail > Rusty Vandura - www.tinyurl.com/keepoppo
10/09/2019 at 12:31

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Yep we need more, PRC and Russia can teach us a thing or two, and our leader wishes he could emulate their leaders.


Kinja'd!!! DipodomysDeserti > Sammyno55
10/09/2019 at 12:32

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Most are also not hiring them as employees. It’s been a problem in trucking for a while. That’s where Uber/Lyft got their recipe.


Kinja'd!!! BigBlock440 > B_dol
10/09/2019 at 12:33

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Are you trying to say he wouldn’t have got a flat tire if he didn’t have the apps on his phone?  Because he still would have had the flat tire, and wouldn’t have if half paid for if he didn’t drive earlier in the week.


Kinja'd!!! For Sweden > DipodomysDeserti
10/09/2019 at 12:34

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https://www.google.com/search?q=trucking+jobs+detroit+michigan&ibp=htl;jobs&sa=X&ved=2ahUKEwiMltnUzY_lAhWOpp4KHbv1DGcQiYsCKAF6BAgJEBA#fpstate=tldetail&htidocid=Ij67YWuahxEkSfuHAAAAAA%3D%3D&htivrt=jobs


Kinja'd!!! BigBlock440 > functionoverfashion
10/09/2019 at 12:35

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The flat happened on personal time, it would have happened regardless if he made that $257 earlier in the week or not.


Kinja'd!!! functionoverfashion > BigBlock440
10/09/2019 at 12:37

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Gotcha. It was also pointed out that things like gas and tires are included in the 58 cents/mile. Still, that’s $257.34-168.78 = 88.56 for $6.32/hr. Not great. 


Kinja'd!!! B_dol > BigBlock440
10/09/2019 at 12:50

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I’m not saying the two are definitively linked, however the author fails to see how the additional miles and maintenance detracts from his earnings. Driving more miles on the road raises the risk of a flat, period. 


Kinja'd!!! DipodomysDeserti > For Sweden
10/09/2019 at 13:02

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https://www.ziprecruiter.com/Jobs/Independent-Contractor-Truck-Driver


Kinja'd!!! For Sweden > DipodomysDeserti
10/09/2019 at 13:03

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I agree that independent contracting still exists.


Kinja'd!!! DipodomysDeserti > For Sweden
10/09/2019 at 13:12

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And I agree that UPS still exists.

I guess the answer to, “do you actually know any truck drivers” was no.


Kinja'd!!! LimitedTimeOnly @ opposite-lock.com > functionoverfashion
10/09/2019 at 13:47

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Yes, if one is lonely, it is a way to engage with others . . . while putting your car and your person at risk that you otherwise wouldn’t have taken.

So, yes, just like going to a bar.


Kinja'd!!! jimz > DipodomysDeserti
10/09/2019 at 14:27

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Welcome to America.

“Do you know what you’re talking about?”

“No, but I still have strong opinions which can’t be changed no matter how much evidence you throw at me.”


Kinja'd!!! AMGtech - now with more recalls! > facw
10/09/2019 at 16:11

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What kind of dumbass would put the life of their child in the hands of an Uber/Lyft driver? With or without a car seat...


Kinja'd!!! Manny05x > Sammyno55
10/09/2019 at 16:26

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If you apply the same kind of math as you would to the trucking industry; you would be looking at it as a lost of time also. I drove Cali and back 6 days out on the road and my pay amounted to about 12$ an hour. Keep in mind even if you are not driving you are still responsible for that load so it is a 24 hr a day job. 


Kinja'd!!! Manny05x > DipodomysDeserti
10/09/2019 at 16:27

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I drove a truck for 3 months, truckers are underpaid.


Kinja'd!!! Sammyno55 > Manny05x
10/09/2019 at 17:01

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That was my point. You did clear a profit. I’m not really sure Uber and Lyft drivers do. One of my colleagues drove a week for Lyft and made effectively no money after car costs were taken into account. As an example, one weekend night, he ended up taking someone from a north Atlanta suburb to the airport (south of Atlanta) then picked up another “ride share” and took them about 40 minutes further south. He then had to deadhead about 2 hours north to return home.

I wonder if the ride sharing gig would work better if it tried to match occasional driver’s with riders along or nearly along their route. I mean, I’d pick someone up for a little cash on   my typical commute if they were going mostly the same direction.

I used to old school  carpool back in the day and I didn’t even have an app. I just picked a friend up on the way to work and dropped him off on the way home. He always filled the tank with gas.


Kinja'd!!! DipodomysDeserti > jimz
10/09/2019 at 17:42

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It’s the American Way. I don’t need to be educated on something, because I already feel a certain way about it.  


Kinja'd!!! DipodomysDeserti > Manny05x
10/09/2019 at 17:43

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Yep, hence the shortage of drivers. Kind of like how there’s a shortage of teachers in my state.