SoylentNews is people
SoylentNews
A study conducted by the MIT Center for Energy and Environmental Policy Research analysed revenue and costs for over 1100 Lyft and Uber drivers, with the conclusion that most earn below minimum wage for their state and about 30% actually lose money when all the costs of owning and operating their vehicles are taken into account.
"A Median driver generates $0.59 per mile of driving, and incurs costs of $0.30 per mile", "On an hourly basis, the median profit was $3.37 per hour".
Because actual vehicle operating costs are significantly lower than the IRS allowance of $0.54/mile, many drivers report incomes that are substantially lower that their actual incomes, leading to a large pool of untaxed income (although it is small for each driver).
This discussion has been archived.
No new comments can be posted.
MIT Study Shows How Much Driving for Uber or Lyft Sucks
|
Log In/Create an Account
| Top
| 67 comments
| Search Discussion
The Fine Print: The following comments are owned by whoever posted them. We are not responsible for them in any way.
If the thunder don't get you, then the lightning will.
(Score: 2) by JoeMerchant on Saturday March 03 2018, @08:12PM (2 children)
P.T. Barnum covered this: "There's a sucker born every minute."
🌻🌻 [google.com]
(Score: 2) by julian on Saturday March 03 2018, @09:17PM (1 child)
I don't know where the equilibrium point will finally settle at. Uber needs to constantly recruit new drivers to replace the ones who get burnt out after a short period of time, but the world is only birthing so many "suckers" every year. There's a large and ever increasing supply, but it's not infinite. Given that Uber has yet to be profitable for even a single quarter, they're operating on borrowed time--not to mention money. Prices will have to go up sooner or later.
(Score: 2) by leftover on Saturday March 03 2018, @09:56PM
I doubt it will ever live to the ride price equilibrium. Long before that, the drop in driver availability will shine a light on Uber's market value bubble. Their only actual asset is their smartphone app.
Bent, folded, spindled, and mutilated.