RIDEGURU
Article on Drivers Wages. What are your thoughts?
Posted 6 years, 2 months ago
Posted In
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Posted By
Monica Castleberry (momof4)
8198
Rider
Driver
Ride Expert from Philadelphia PA
Mom & Nursing Student by day Ride Share Driver by night always on the go
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Comments
Currently there is still an inrush of "newbies" that have to go through the process of "finding out for themselves" how Uber/Lyft actually pay, and once they've filed their taxes it's easy to see that the current compensation plan will eventually fail. Becuase of the "newness" of Uber and all the publicity, Uber and Lyft currently enjoy a steady of flow of new drivers, so the reality that the average driver stays on the system less than six months has not hampered their growth.
However, this will not always be the case. All it will take is a few expose's on a national news program to bring the reality crashing into the forefront of everyone's mind. (Can't believe no one has done it yet, but perhaps those advertising dollars keeps the news folks away from the story)
Yes, I do driver for Uber/Lyft although only on an infrequent basis. And yes, if you've learned how to plan your time and location, you can make more than most of the estimates. And yet…
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Currently there is still an inrush of "newbies" that have to go through the process of "finding out for themselves" how Uber/Lyft actually pay, and once they've filed their taxes it's easy to see that the current compensation plan will eventually fail. Becuase of the "newness" of Uber and all the publicity, Uber and Lyft currently enjoy a steady of flow of new drivers, so the reality that the average driver stays on the system less than six months has not hampered their growth.
However, this will not always be the case. All it will take is a few expose's on a national news program to bring the reality crashing into the forefront of everyone's mind. (Can't believe no one has done it yet, but perhaps those advertising dollars keeps the news folks away from the story)
Yes, I do driver for Uber/Lyft although only on an infrequent basis. And yes, if you've learned how to plan your time and location, you can make more than most of the estimates. And yet, when you file your taxes at year end, the reality that you don't have to pay income tax on your earnings after taking the standard mileage deduction is first viewed as "cool, i don't have to pay any taxes on this 10K from Uber"... until you look at what has happened to the value of your car and the additional expenses you've incurred for maintenance items.
Can you make money? Under the current situtation, the ONLY REAL WAY is to drive an inexpensive car that provides high MPG with limited repairs and then, and only then, can you make a few bucks. That's not my personal situation - i'm driving a $52K Explorer which I also use for my full time profession which also requires a ton of annual miles (40-50K) so the only benefit I gain is that the car pretty much gets written off completely. However the reality is, I'm still spending the money, still making the car payment, and all the deduction means is that I don't have to pay income tax on that portion of expenses. Nothing more, and nothing less so don't ever be fooled into thinking the expenses aren't real just because you're able to avoid taxation!!! I'm always amazed when I hear people say things like" Oh, they can write it off"... as though it costs nothing as long as you can write it off. OH how I wish it were true!!!
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Don't know about anyone else here, but my average hourly earnings are down an average of 27% compared to the same week last year. (numbers are consistent over the past several weeks)
I know the city infinitely better, I've refined my driving techniques to be more efficient and my rating are higher, but profits over the last year are definitely down significantly. I only wish I still had stats from the year before, but compared to 2016 I'm guessing I'm down at least 40%.
I notice a difference from last year. When I started driving in July 2017 I drove 1 to 2 days per week. Usually Friday and Saturday. I had more trips, better trips, good surges, better tips, more tips, barely any pool, and very small amt of short trips. Since I started driving more hours starting in May 2018. It's been awful. Tips are lower ( maintained same rating as last year), maybe 1 surged ride per month (get slightly more with new surge), longer pick ups, many short rides, more pool, less money. I made more driving less days and less hours. It seems when you are a new driver working a couple days, less than 20 hrs. you get good trips once you are with Uber more than 12mths things decline. Trips have longer pick ups, more pool, less trips, etc... Uber does not want good, reliable, high rated drivers. As you become more experienced, understand things more, see whats going on, Uber doesnt want you anymore. Just my opinion and my experience.
Yep this. "Drivers pocketed an average of $1,469 per month in 2014 but only $783 by 2018."
My wages have steadily gone down since starting to drive for Uber in 2015.
I read and read but I don’t see it answering the question whether a full time Driver can make a livable wage
So whats the verdict?
Can Full-Time Uber and Lyft Drivers Make a Livable Wage?
In my opinion not here in Philadelphia. Too much wear and tear on car. Uber pool and pool express dont pay enough. Not many tips. Part time maybe to make few dollars but definately not full time. Riders ratings getting lower and lower afraid to pick up so you decline. Not as many rides too many drivers. Tuesday and Wednesday very slow. A lot of short trips. I am only doing it for the flexibility right now but really considering something else.Cant stay on top of my bills. I did better making 10.00 per hr 40 hrs a week than I do with uber. This is just my opinion.
It all becomes a matter of what YOU would consider "livable wage".... and IMO, absolutely NOT. Yes I drive, but I do it to supplement my excellent day job. I enjoy meeting people and generally find it to be a fun job (until it isn't)... and when I retire in a few years, I plan to do it a lot more, BUT, keep in mind I"ll still have retirement income rolling in, so it will supplement my cash flow. God help those that are doing it full time as their primary source, but I do know several that do and they work LONG hours and honestly have no real personal time, hobbies, or other interests. That simply isn't a plan that would choose to follow, but it works for some.
Generally once you learn your market and are willing to work the inconvenient hours necessary to maximizing your riders needs, one can fairly average $20.00 an hour in our market before considering expenses. Yes there will be times when everything falls into place and you'll make 30-40 …
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It all becomes a matter of what YOU would consider "livable wage".... and IMO, absolutely NOT. Yes I drive, but I do it to supplement my excellent day job. I enjoy meeting people and generally find it to be a fun job (until it isn't)... and when I retire in a few years, I plan to do it a lot more, BUT, keep in mind I"ll still have retirement income rolling in, so it will supplement my cash flow. God help those that are doing it full time as their primary source, but I do know several that do and they work LONG hours and honestly have no real personal time, hobbies, or other interests. That simply isn't a plan that would choose to follow, but it works for some.
Generally once you learn your market and are willing to work the inconvenient hours necessary to maximizing your riders needs, one can fairly average $20.00 an hour in our market before considering expenses. Yes there will be times when everything falls into place and you'll make 30-40 an hour, but very few are able to maintain those earnings in an average market. (Perhaps NY or CA, but the cost of living is also double there).
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It is possible to make between $18.00 - $25.00 per hour before expenses.
taxes are not an issues as deducted miles will show a higher loss on paper.
rideshare was not designed to be a full time gig, though some people make it so.
all depends what one is switching from.
if one is making $7.50 per hour then rideshare is not a bad choice but always strive to find something better.
Some tips:
must have car that is good on gas
doing basic work on own car is a plus (brakes, etc)
finding good deals on tires is a plus (craigslist often has good deals on almost new tires)
Find a car wash with free vaccums momof4 - Street rd & Knights (wink, wink)
was car once a week or more often if needed
keep car clean in and out
pack your lunches instead of eating out
do not drink too much coffe or will need more bathroom breaks
do more longer rides if possible to use less gas and put less wear on the car.
learn where to be and when
have a plan