Why Uber Is A Scam - Math Explains

[FrodosPet]

[ghostsinthemachine]

1. Excellent.

Thanks for posting

[Hulk]

2. Pretty lop sided hit job....

I started driving for Uber around the first of March, and Lyft a few weeks after.

I'm 68 years old, and I'm living on Social Security and half a teacher's pension. There is absolutely NO WAY my wife and I are going to be able to afford a newer car to replace our worn out and uncomfortable '95 Corolla. So here's my solution.

I went out and bought a 2012 Prius for just over $10K, and by driving Uber and Lyft about 20-5 hours a week, I can gross around $300 a week. I make a few bucks on tips, but I hear more stories about how "I don't have any change"....or "is there some way we can tip you on line", etc. All pretty much smoke screens for not tipping. Lyft allows the riders to tip when they approve the bill. About half do.

I don't buy water and gum. If you want water or gum, we can stop at a Plaid Pantry, and you can run in and buy your fook'n bottle or chew sticks. That's nonsense. When is the last time your taxi driver offered you a drink or chew? Right.

Uber and Lyft take from between 20-25%, plus Uber takes a dollar a fare. That's bull shit. For a $5 short hop, I gross $2.74. Not going to get rich there. They withhold NO taxes, so that's my responsibility. I have to be sure to set aside 30% for inevitable taxes.

A few points to make. What other job am I going to find that allows me to work when I WANT TO work? What other job am I going to find that will hire a 68 year old retired teacher? I've tried several employers, and I've never heard a word back from anyone...car rental outfits, COSTCO, etc.

So, the bottom line is Uber and Lyft ARE exploiting their employees, but I am willing to be exploited if I can make enough to pay off this car in a year, have fun meeting mostly interesting and good people, and can have the flexibility to work when I want and can. I'm probably making more like $7-12 an hour, after taxes, etc. But I enjoy it, and I'll see if I work beyond a year, once my Prius is paid off.

This gal paints a pretty grim picture, and I'm sure she can find someone who fits her bill. I don't think it represents most of us. Some people drive to fill the hours. Some people drive to makes some "extra bucks" after their other jobs, and some folks drive like a taxi would....and the latter are the group that are really struggling to make it.

I'd suggest riders tip. A buck or two makes a big difference to the drivers. If you'd rather pay a taxi twice as much for half the service to ride in a dirty car with a driver that most often has as much personality as an old pair of shoes...be my guest. Uber and Lyft are filling a need, and the Uber and Lyft employers need to be exposed for how they are exploiting their drivers. Shooting the messenger isn't the best way to accomplish that, in my opinion.

[FrodosPet]

3. I have a huge amount of love and respect for rideshare drivers

At times, it is the coolest sucky job in the world.

But Uber lies. Uber endangers their drivers' financial viability. They set them up for tickets that not only cost money (which they MAY pay, or may not). They lied about earnings potential. They lied about tips.

Out of curiosity, what is your final take per actual mile (not fare miles) driven? To make that $10,000 net at Uber's current rate, it is going to take you 30,000 miles. You are going to need a new set of tires and probably brakes...don't forget to put about $800-$1000 back for those.

Have you had any slow weeks? A little bad Uber luck and you might end up grossing < $200 for a 40 hour week.

I am not trying to be discouraging. I know you are in a tough position, and you gotta do what you gotta do in the dystopia of 2016. Good luck, and squeeze every nickle until it cries for mercy. And try to avoid low rated passengers. They can get you deactivated in a HURRY!

BTW, for both the good and bad of Uber, Lyft, etc. check out:

http://uberpeople.net/

[unblock]

6. that's terrible! the irs lets you deduct $0.54 per mile because that's presumed to be your expenses

in terms of gas and wear and tear on your vehicle. keep in mind that 30,000 miles also means a major service. drive enough miles and eventually you need a new car entirely.

so for 30,000 miles, the irs is figuring $16,200 in expenses. if you're grossing $10,000, the irs figures you're actually losing money.

to hell with minimum wage, you're actually paying for the privilege of working!

[Major Nikon]

4. It's pretty obvious it's a hit job when the alternative isn't compared

Taxi drivers are considered independent contractors, which means they are also responsible for their own taxes. Most of them also have to lease their car which they will never own and pay permit fees back to their dispatching company. Since they don't own their car, they can't depreciate it like the cab company does, so they have no were near the tax benefits an Uber driver can get.

[RufusTFirefly]

5. Here's the elephant in the room

Last edited Wed May 11, 2016, 08:46 PM - Edit history (1)

Why do we have a system where Uber can get away with this exploitation and Uber drivers either don't mind or are ignorant of what's going on?

Sadly, it reminds me of the elections. It's as if people are saying, "Sure, I know it sucks, but I have no choice and besides, it could be a lot worse."

[Hulk]

7. "..either don't mind or are ignorant..."?

Or maybe have zero option or power to do anything about it.

Not sure what your message is, but I'd like to bring out their greed and make it more equitable. Right now, it's "my way or the highway".