How much does Uber pay its drivers? (1 Viewer)

[jvdesigns2002]

MIT admitted that the data that it gathered when it claimed that Uber drivers made less than $4/hour was flawed.  They re-ran the numbers and found that it's closer to 2.5-3x that--which still isn't great (but it's far better than what their initial report came up with). 

http://fortune.com/2018/03/06/uber-lyft-mit-zoepf/

 

[BoltBacker]

MIT admitted that the data that it gathered when it claimed that Uber drivers made less than $4/hour was flawed.  They re-ran the numbers and found that it's closer to 2.5-3x that--which still isn't great (but it's far better than what their initial report came up with). 

http://fortune.com/2018/03/06/uber-lyft-mit-zoepf/

Great link.

In particular this part stuck out to me....

"Zoepf said he would be updating the CEEPR paper, but in the meantime he recalculated the figures using a methodology suggested by Hall, and found that the median profit was $8.55 per hour, rather than $3.37, and only 8% of drivers lose money on on-demand platforms.

Using another methodology, he added, the median rises to $10 per hour and only 4% of drivers lose money."

When I read the earlier claim that a THIRD of drivers were LOSING money driving for Uber that didn't make any sense at all. 

One part I still don't understand is this....

"Zoepf asked Uber to 'help make an open, honest and public assessment of the range of ride-hailing driver profit after the cost of acquiring, operating and maintaining a vehicle,' and to 'transparently present the difference between actual and tax-reportable vehicle expenses used in the business.'"

Why does he need Uber to do that? There are car buying sites out there that estimate projected the cost of ownership associated every make and model on the road adjustable for the driving you do. I don't know what the criteria is for owning a car that Uber deems acceptable to drive with, but it must be spelled out someplace. So all he really needs after that is a Walmart tax-accountant to calculate the difference.

 

[Warrior]

All I know is that the pay is so slim, that if you have a gas car instead of a hybrid, you'll lose money driving for them.

This is completely false.

 

[Christo]

This is completely false.

But he knows it.

 

[dgreen]

But he knows it.

It’s all he knows. 

 

[Smack Tripper]

Hang on a second. Companies bought up and hoarded a finite supply of taxi medallions, steadily drove up the price of each to over $1 million, someone comes up with a preferred alternative but THEY are the ones that are disgusting?

Its not solely companies, there were a lot of independent owner operators who would lease their medallion out.  As part of owning a medallion, you were subject to the regulation of the Taxi and Limosuine Commission, which caused drivers to have more insurance and better upkeep of the vehicle.  You can argue the pros and cons of regulation but the fact is, it was a government imposed structure and the medallions were artificially limited by the government and not by the drivers or ownership companies.  They were treated as defacto bonds and investments.  The taxi market was in turn protected and yellow cabs were not perfect in NYC.  But the problem was being addressed, at great investment by private enterprise, in green cabs, which were to operate north of 110th street and in the outerboroughs.  And then Uber makes massive DiBlasio donations and this protected industry is cratered overnight, Medallons now go for $300,000 with no warning, no progression and none of the same regulations regarding insurance or oversight into vehicle upkeep that the yellow cabs face.  There should have been a better transition or limitation until the new tech was sorted out.  Yes, it is disgusting, when independent owner operators are blowing their brains out on a not infrequent basis seeing their entire future crushed.  Even the guys owning these companies, they were likely drivers that rose up and collected.  

And mark my words, what will happen, when these medillions fall to being worth 100K or less, a corporation will buy them up, make the right donations, and Uber will be shown the door and these medallions will be worth what they were and more.  And the car dynamic is going to get very interesting in short order in Manhattan with dynamic pricing.

 

[STEADYMOBBIN 22]

In a quality of life move I switched jobs recently and have been driving for Uber for a few hours here and there. I have found out my best experiences have been in the evenings from 8-12. It seems obvious but I have also found that it’s far better to be in the city rather than the burbs and evenings are best. 

In downtown Washington DC tonight for example I was out there for 3 hours and made $65 on 8 trips. This was downtown and my riders were either young couples after they’ve out to eat and two guys at union station getting off the train from NY. Keep in mind this was on a Tuesday during a snowstorm.

On the flip side last Friday - day,  I was in a more suburban area of VA and in 5 hours I only made $40 on 6 rides. The rides were far and few between and I spent a lot of time waiting for fares. 

I will I’ll say I absolutely love meeting and talking with people from all walks of life. Tonight I met a dude from Austria and he told me all about the Alps, Normandy France and we talked about skiing. I met another guy from NY and we talked sports for 15 minutes. The other day a Nigerian girl and a smoking hawt lady who was on her way to buy a new Benz. Oh, and everybody is a consultant or something else that’s almost impossible to explain. So far everyone has been nice, clean and friendly. I never would have expected it, but it’s almost restored my faith in humanity. 

If I keep up my current pace I’ll make an extra $200-$250 a week which will help me keep my current credit score until my commission checks from my new job start rolling in. 

 

[Zegras11]

In a quality of life move I switched jobs recently and have been driving for Uber for a few hours here and there. I have found out my best experiences have been in the evenings from 8-12. It seems obvious but I have also found that it’s far better to be in the city rather than the burbs and evenings are best. 

In downtown Washington DC tonight for example I was out there for 3 hours and made $65 on 8 trips. This was downtown and my riders were either young couples after they’ve out to eat and two guys at union station getting off the train from NY. Keep in mind this was on a Tuesday during a snowstorm.

On the flip side last Friday - day,  I was in a more suburban area of VA and in 5 hours I only made $40 on 6 rides. The rides were far and few between and I spent a lot of time waiting for fares. 

I will I’ll say I absolutely love meeting and talking with people from all walks of life. Tonight I met a dude from Austria and he told me all about the Alps, Normandy France and we talked about skiing. I met another guy from NY and we talked sports for 15 minutes. The other day a Nigerian girl and a smoking hawt lady who was on her way to buy a new Benz. Oh, and everybody is a consultant or something else that’s almost impossible to explain. So far everyone has been nice, clean and friendly. I never would have expected it, but it’s almost restored my faith in humanity. 

If I keep up my current pace I’ll make an extra $200-$250 a week which will help me keep my current credit score until my commission checks from my new job start rolling in. 

Last month in LA, my driver was an owner of a Tai-Kwon-Do place and also a RE investor like myself.  Had a great conversation during the ride about each of our markets. I've actually tossed the idea around of driving to get RE leads.  I enjoy meeting new people

 

[STEADYMOBBIN 22]

Last month in LA, my driver was an owner of a Tai-Kwon-Do place and also a RE investor like myself.  Had a great conversation during the ride about each of our markets. I've actually tossed the idea around of driving to get RE leads.  I enjoy meeting new people

I’ve read stories about how drivers have made far more selling wares while driving. 

I’ve been thinking of other ways to take advantage of getting access to potential clients. I’m an estimator for a new but growing general contractor. We do house flips, additions, high end kitchens and baths as well as commercial work. I carry my business cards but maybe I should make a small laminated sign that’s states what I do and to “ask me” about my work if they’re interested in said work. 

 

[RUSF18]

Its not solely companies, there were a lot of independent owner operators who would lease their medallion out.  As part of owning a medallion, you were subject to the regulation of the Taxi and Limosuine Commission, which caused drivers to have more insurance and better upkeep of the vehicle.  You can argue the pros and cons of regulation but the fact is, it was a government imposed structure and the medallions were artificially limited by the government and not by the drivers or ownership companies.  They were treated as defacto bonds and investments.  The taxi market was in turn protected and yellow cabs were not perfect in NYC.  But the problem was being addressed, at great investment by private enterprise, in green cabs, which were to operate north of 110th street and in the outerboroughs.  And then Uber makes massive DiBlasio donations and this protected industry is cratered overnight, Medallons now go for $300,000 with no warning, no progression and none of the same regulations regarding insurance or oversight into vehicle upkeep that the yellow cabs face.  There should have been a better transition or limitation until the new tech was sorted out.  Yes, it is disgusting, when independent owner operators are blowing their brains out on a not infrequent basis seeing their entire future crushed.  Even the guys owning these companies, they were likely drivers that rose up and collected.  

And mark my words, what will happen, when these medillions fall to being worth 100K or less, a corporation will buy them up, make the right donations, and Uber will be shown the door and these medallions will be worth what they were and more.  And the car dynamic is going to get very interesting in short order in Manhattan with dynamic pricing.

I disagree with probably 95% of what you wrote so I'll just say thanks for sharing your views. But I'll also point out that the reason it took "millions in donations" for Uber to get in is precisely because the taxi industry was protected thanks to the similar deep pockets of the taxi industry. Why do you think cities had been keeping Uber out in other places? Out of some deep concern for public safety? It was money, plain and simple, just like damn near everything else in the world.

Bottom line is there was a monopoly in place and a better, cheaper, more reliable alternative came in which NYC residents/workers/tourists preferred. 

 

[Capella]

Its not solely companies, there were a lot of independent owner operators who would lease their medallion out.  As part of owning a medallion, you were subject to the regulation of the Taxi and Limosuine Commission, which caused drivers to have more insurance and better upkeep of the vehicle.  You can argue the pros and cons of regulation but the fact is, it was a government imposed structure and the medallions were artificially limited by the government and not by the drivers or ownership companies.  They were treated as defacto bonds and investments.  The taxi market was in turn protected and yellow cabs were not perfect in NYC.  But the problem was being addressed, at great investment by private enterprise, in green cabs, which were to operate north of 110th street and in the outerboroughs.  And then Uber makes massive DiBlasio donations and this protected industry is cratered overnight, Medallons now go for $300,000 with no warning, no progression and none of the same regulations regarding insurance or oversight into vehicle upkeep that the yellow cabs face.  There should have been a better transition or limitation until the new tech was sorted out.  Yes, it is disgusting, when independent owner operators are blowing their brains out on a not infrequent basis seeing their entire future crushed.  Even the guys owning these companies, they were likely drivers that rose up and collected.  

And mark my words, what will happen, when these medillions fall to being worth 100K or less, a corporation will buy them up, make the right donations, and Uber will be shown the door and these medallions will be worth what they were and more.  And the car dynamic is going to get very interesting in short order in Manhattan with dynamic pricing.

Some investments lose. 

Every uber I’ve ever been in has been better than a disgusting NYC taxi. If you want to keep up with the modern world, do better. 

And  at your last paragraph. You must be kidding, or are in a severe case of denial. 

 

[culdeus]

Some investments lose. 

Eveey uber I’ve ever been in has been better than a disgusting NYC taxi. If you want to keep up with the modern world, do better. 

I've seen a pretty dramatic drop in car quality on UberX in the last year here.  

 

[doowain]

[I'm thinking of going back to school for an M.Ed in teaching English to speakers of other languages.] 

Trading in for a newer model huh?

That's like having an old dog and getting a job at a puppy store so you can search for a replacement.  You're sick.

 

[eoMMan]

Aside from the lower pay, I don't think I'd want to deal with the drunken dooshes I'd encounter. I would set it up just for morning trips to airports/hotels.

Also, I don't think I'd be comfortable with letting my wife or daughter drive uber/lyft.

 

[JuniorGong]

UberX could easily charge more in my opinion as it is typically well below the cost of a cab but a lot easier to use.

I travel a lot for work and used to rent cars on all my trips but these days I hardly ever rent a car and just Uber my way around. Depending on where I’m traveling, it probably saves my company a few dollars. The added bonus is if I’m out with clients for dinner/drinks I don’t have to worry if I end up having a lot of cocktails.

i do prefer the cities that offer Select, quality cars at a much more affordable rate than regular Uber.

Uber might be a company that screws their independent consultant drivers but that has nothing to do with me. As a consumer, it is a great service.

 

[Smack Tripper]

Some investments lose. 

Every uber I’ve ever been in has been better than a disgusting NYC taxi. If you want to keep up with the modern world, do better. 

And  at your last paragraph. You must be kidding, or are in a severe case of denial. 

How many nyc cabs have you been in?  

And tell me more about my denial https://www.google.com/amp/s/nypost.com/2017/10/14/investors-see-opportunity-as-taxi-medallion-prices-bottom-out/amp/

 

[Smack Tripper]

I disagree with probably 95% of what you wrote so I'll just say thanks for sharing your views. But I'll also point out that the reason it took "millions in donations" for Uber to get in is precisely because the taxi industry was protected thanks to the similar deep pockets of the taxi industry. Why do you think cities had been keeping Uber out in other places? Out of some deep concern for public safety? It was money, plain and simple, just like damn near everything else in the world.

Bottom line is there was a monopoly in place and a better, cheaper, more reliable alternative came in which NYC residents/workers/tourists preferred. 

What are you disagreeing with?  The majority of my post are factual statements? Are taxis not more regulated in nyc than Uber vehicles? Is there not a different level of insurance required. 

You guys may feel comfortable with these middle class guys being cast adrift with no transitional support but I’m not.  I hope you’re never in a postion to have to choose between crappy pay and no pay 

https://www.npr.org/2018/02/10/584757778/taxi-drivers-face-financial-crisis

 

[The General]

Pretty much only time I ride cabs is from an airport, in Manhattan. occasionally when leaving a hotel and there's a line of them.

Pretty much every ride they are more beat up or more uncomfortable than the generic Uber X or whatever the basic service is. Always love the "my card machine isn't working schtick" from cabs as well and they want cash.

One of the better things that has happened for business travel is Uber. Up there with TSA Pre-Check.

Whatever NYC was doing to "regulate" the service was not working.

 

[[icon]]

Pretty much only time I ride cabs is from an airport, in Manhattan. occasionally when leaving a hotel and there's a line of them.

Pretty much every ride they are more beat up or more uncomfortable than the generic Uber X or whatever the basic service is. Always love the "my card machine isn't working schtick" from cabs as well and they want cash.

One of the better things that has happened for business travel is Uber. Up there with TSA Pre-Check.

Whatever NYC was doing to "regulate" the service was not working.

Agree 100%. A few notes from this thread: 

• I too used to rent cars for business travel but now uber/lyft everywhere. It's actually cheaper in the long run when you factor in fuel, parking, etc. 
• I am not brand loyal. I generally defer to uber as it's cheaper here, but when surges affect pricing I'll often look at the cheapest option. Gaps can be large. 
• The quality of cars are higher with Uber than Cabs in my experience as well. When in LA I was getting rides from Genesis G80's and late model Benz's on Uber X. 
• Shared/Pooled riding generally sucks unless you are in NO hurry to get where you're going. Not worth the small savings. 
• Cab drivers are horribly unreliable if you're having to call for a ride. That was a major reason for my using uber initially. 
• Cab drivers being #####, and claiming their credit card machine was down was another reason, though they seem to do that MUCH less now with competition. 
• Drivers generally are far more interesting in Uber/Lyft than taxis

 

[unckeyherb]

I commute 45 mins to an hour each way every day from burbs into Philadelphia and back again,  Since I am already making the drive anyways I am planning on becoming an uber driver.  Why not make some extra cash on a drive i am already going to make anyways?  

Uber ride for me to philly is typically $40-60.  If I do 3-4 pickups per week and I pocket 75% of the proceeds (according to someone on this thread) I can make an extra $150 a week.  Not too bad..

 

[[icon]]

I commute 45 mins to an hour each way every day from burbs into Philadelphia and back again,  Since I am already making the drive anyways I am planning on becoming an uber driver.  Why not make some extra cash on a drive i am already going to make anyways?  

Uber ride for me to philly is typically $40-60.  If I do 3-4 pickups per week and I pocket 75% of the proceeds (according to someone on this thread) I can make an extra $150 a week.  Not too bad..

You can't select fares that are going where you want to go. You have zero control over that. 

 

[Hilts]

You can't select fares that are going where you want to go. You have zero control over that. 

Incorrect. You can select your destinations and it will pair you up with a pax going that way. You can only do that twice, it limits you doing it during peak hours, and it's sometimes less accurate than you'd like, but it can be done. Unckeyherb should probably find a carpooling rideshare service instead, but it could be done. 

 

[[icon]]

Incorrect. You can select your destinations and it will pair you up with a pax going that way. You can only do that twice, it limits you doing it during peak hours, and it's sometimes less accurate than you'd like, but it can be done. Unckeyherb should probably find a carpooling rideshare service instead, but it could be done. 

Interesting. This isn't how I understood the service. 

When you say "Can only do it twice?" In what timeframe? Daily? 
"Limits you doing it during peak hours" meaning you can ONLY do it during rush hour? Or CAN'T do it during Rush Hour? 

All these factors might mean this indeed would not work for OP as he intends. 

 

[Hilts]

Interesting. This isn't how I understood the service. 

When you say "Can only do it twice?" In what timeframe? Daily? 
"Limits you doing it during peak hours" meaning you can ONLY do it during rush hour? Or CAN'T do it during Rush Hour? 

All these factors might mean this indeed would not work for OP as he intends. 

I agree with you it wouldn't really be a good fit for the OP. 

Twice a day. You can't do it during rush hour. 

Some drivers get around this by simply kicking pax out if they're going to an unwanted destination and cancelling the ride right after swiping to start the ride. 

 

[[icon]]

Some drivers get around this by simply kicking pax out if they're going to an unwanted destination and cancelling the ride right after swiping to start the ride. 

Sounds like this would be the type of crap that gets you in hot water with uber? 

 

[Hilts]

Sounds like this would be the type of crap that gets you in hot water with uber? 

Not really. If you abuse the trick, maybe you get a generic automatic email for your cancellation rate going too high. Every driver who has driven for any decent amount of time is aware of it, and there's a solid chance they've actually done it. I don't want to say uber encourages this, but they're certainly aware and aren't doing anything to fix the problems that cause it. They don't really care. 

 

[unckeyherb]

You can't select fares that are going where you want to go. You have zero control over that. 

I don't think that is correct.  

 

[[icon]]

I don't think that is correct.  

For your described purposes, it kinda is. Sorry GB

 

[unckeyherb]

For your described purposes, it kinda is. Sorry GB

I might be wrong but Ive been told I can set my current location and my destination.  I'll then only get requests the jive with that approx route.  That seems like it's exactly what I'm looking for.  Admittedly I don't all the caveats that go with it, however if it limits me to doing that twice per day, that's fine.  I only want to do it in conjunction with my commute.

 

[Christo]

I've seen a pretty dramatic drop in car quality on UberX in the last year here.  

Here, too.

 

[Christo]

I might be wrong but Ive been told I can set my current location and my destination.  I'll then only get requests the jive with that approx route.  That seems like it's exactly what I'm looking for.  Admittedly I don't all the caveats that go with it, however if it limits me to doing that twice per day, that's fine.  I only want to do it in conjunction with my commute.

"Approximate" can be pretty lax in my experience.

 

[unckeyherb]

"Approximate" can be pretty lax in my experience.

Fair enough.  Do you have some reference?  I'd be interested to hear 

 

[LoadLetterPaper]

Uber self-driving vehicle hits, kills pedestrian in Arizona

http://www.bostonherald.com/news/national/2018/03/uber_self_driving_vehicle_hits_kills_pedestrian_in_arizona?utm_source=facebook&utm_medium=socialflow

 

[Smack Tripper]

https://nypost.com/2018/03/21/cabbie-blamed-uber-lyft-for-financial-woes-before-hanging-himself/

 

[The General]

https://nypost.com/2018/03/21/cabbie-blamed-uber-lyft-for-financial-woes-before-hanging-himself/

Sad story. Why does a taxi license cost a million? That’s ridiculous.

 

[Smack Tripper]

Sad story. Why does a taxi license cost a million? That’s ridiculous.

the market was limited to limit traffic congestion on NYC streets and the value went up and up.  

 

[Capella]

Was in dc a few days and every uber request was a half-hour wait. Ended up in some cabs and they were all thorougly disgusting. One guy was outright rude when his credit card machine failed. 

I’m sure the snow led to the long uber waits but it was still disappointing. They are still behind the cabs in immediate service in the big areas. 

 

[The General]

the market was limited to limit traffic congestion on NYC streets and the value went up and up.  

Pretty bad situation people are in if they leveraged themselves heavily to get one of those licenses. ####ty situation for them awful, unlucky timing for sure. People do make bad investments all the time however. I have some stocks I wouldn’t mind getting a refund on.

 

[Rick James]

Uber could easily raise rates and maintain 98% of their user base imo. I don't really care about the lower cost. The app is the thing. As long as I don't have to call a cab dispatcher I'm good. 

 

[STEADYMOBBIN 22]

Was in dc a few days and every uber request was a half-hour wait. Ended up in some cabs and they were all thorougly disgusting. One guy was outright rude when his credit card machine failed. 

I’m sure the snow led to the long uber waits but it was still disappointing. They are still behind the cabs in immediate service in the big areas. 

Was this on Tuesday by any chance? I had one of my best nights ever Tuesday. 

Washington DC, Exclusively driving only during promotions and only on weekday evenings from ~8PM-1AM (give or take an hour) Im averaging $38/hour. 

Ive “worked” two nights last week and two night this week, about 4 hours each night and made $625.00.

My checks will start rolling in from my new job but I will certainly keep up this Uber side hustle whenever I need a few extra bucks. 

 

[LoadLetterPaper]

How much does Uber pay it's automated drivers?  Not enough apparently. 

 

[Smack Tripper]

Good podcast today from what is always a pretty good listen, the NY Times "Daily" Podcast, about yet another cabbie suicide, and the current cab and uber situation in NYC

 

[sbonomo]

Uber could easily raise rates and maintain 98% of their user base imo. I don't really care about the lower cost. The app is the thing. As long as I don't have to call a cab dispatcher I'm good. 

I disagree.  I use Lyft almost exclusively due to the stupid constant surge rates on Uber.  Most drivers i talk to have moved to Lyft as well because of the way Uber treats them.  I live in LA so there are always plenty of both available. My $.02

 

[johnnycakes]

Uber drivers take on company in Massachusetts court over pay

BOSTON - Dozens of Uber drivers in Massachusetts have filed a lawsuit against the ride-sharing service after they say the company is short-changing them. 

As of Tuesday, minimum wage in Massachusetts is $12/hour, but dozens of Uber drivers are alleging they are making less than $8/hour.

According to the Boston Herald, the lawsuit alleges Uber labels them as independent contractors, not employees and that means the company doesn't have to follow certain federal and state employment laws.

The lawsuit was filed this week by 79 drivers in Massachusetts. They say along with not getting minimum wage, Uber also fails to pay proper overtime rates for drivers who work more than 40 hours and don't provide sick time.

The attorney representing the drivers says Uber is violating Massachusetts laws.

Drivers argue they should be recognized as employees, despite Uber repeatedly saying they are owners of their own businesses.

This is the latest court battle between Uber and its drivers over the issue of employee versus independent contractor.

In September, a court in California ruled in favor of the company by barring hundreds of thousands of drivers from filing a lawsuit as a group to get better benefits and pay.

Uber hasn't commented on this latest lawsuit.