Income as Lyft or Uber driver ?

[offroad]

Casey - son works at lowes full time. They constantly change shifts and hours. But he is young and handles it okay. Trouble is his refusal to look long term on his prospects there. Which are no prospects. Retail jobs do not have a future of retirement.

 

[Scott_1776]

Ok. Let's break Uber down, as I have been driving for a few months and I can use the power and magic of averages to see what I'm really earning and what it really costs and lay this puppy to bed!

I drive on average 28 hrs a week. My income (weekly deposit) over the past two months has averaged $597 (pre-tax). I have driven just over 6000 miles (not all Uber mind you but for argument sake) and had one oil change.

So here goes my "fuzzy" math:
Income: $4776 less guvmint's cut $4060 net.
Expenses: 6000 miles divided by 38 (MPG in my hybrid Civic I've been tracking) 158 gallons with an average cost of $3 is $474. $110 Jiffy Lube oil change. All said $584.

So $4060 less $584 leaves me $3476. Divide that by 8 weeks is $435 which breaks down to $15.54 per hour NET!

Is it worth it? I've been questioning that alot, and I have been analysis my time spent driving and I think I can make as much money working busier times and I think I can reduce my wasted hours (less busy times) with the higher rate (most busy times) and work about 20 hours a week and still make that same money which if my "fuzzy" math is right should make my avg. per hour earnings rise to $21.75.

Those wondering what those busier times are? Mostly Friday & Saturday evening 5-6pm - 2-3am. And around events (not always something happening every week) like NFL game, MLB game, concerts, festivals, holidays like Halloween, anything that young people go to and tend to drink at.

I did not include insurance because I already pay that whether I drive or not. So let the debates begin...

 

[Almost There]

You're right, your math is a little fuzzy...lol.

First off, taking your net to figure out how much you're making is wrong. Just because the money went straight to the 'govmint', doesn't mean it's not YOUR money. It will be used as a 'prepaid' item when you file your income tax return (you DO file, don't you?) and if you've had too much deducted, you get it back or at least it reduces what you owe in the end.

Second, you didn't include anything for wear and tear on your vehicle. Eventually that car is going to need tires, repairs and some time in the future, replacement. Including just what you spend on gas and oil changes shortchanges the whole thing. If you borrowed to buy that vehicle then the cost of financing should also be included. There are several sites available where you can plug in your vehicle, state and other factors and calculate the true cost per mile of running your car.

I'm not even going to touch the subject of insurance. I typed out a long paragraph about it but realized that I was standing on a soapbox.

If you want to really know what you're making, get some better figures together, like keeping a mileage log - you should anyways because the expenses of driving are tax-deductible and we'll do some not so fuzzy math.

 

[caseyc]

Hi Scott,

Thanks for your rough estimate. Are you only doing Uber driving at this time? Or do you also have other sources of income? Do you also drive for Lyft too? For me, it's just part time, although it could end up being more in the future. Although I can break down the costs in detail if I really want to, I will admit I'm too lazy to and prefer a rough estimate. I do know I will be expensing my income on a 1099 schedule come next April and will write off items such as gas, cell phone bills, auto expense, etc. As for insurance, I personally upgraded to full comprehensive and collision plus uninsured motorist. Surprisingly, this only cost an extra $40 more a month for a 6 month policy. That's the plus side of getting older with a good driving record.

You really have the Uber driver app installed on your Android phone?!? Dang! That peeves me. I just spent over $1,000 on a new iPhone 6+ for the larger screen, as I've been told the Uber app is only in beta mode at this time for Android. Oh well, I have 14 days to decide if I want to keep the new iPhone or refund in full at the Apple store.

By the way, I've already QUICKLY learned to not drive in a certain neighborhood in my town. Let's just say this particular neighborhood is upscale with snobby residents. I'm also pretty sure one particular customer gave me a low rating. I've already had 3 negative experiences in this particular upper crust neighborhood. But all other neighborhoods have been just fine. Lesson learned is that I won't be picking up any more customers in that particular neighborhood. I don't mind dropping them off there, but won't pick up anyone from there. Hah! I'm sure you've already figured out your own survival tactics for this gig!

Ok. Let's break Uber down, as I have been driving for a few months and I can use the power and magic of averages to see what I'm really earning and what it really costs and lay this puppy to bed!

 

[akrvbob]

I also agree it is totally unrealistic to only take gas and oil changes. Especially on a hybrid. If it brings the replacement of that very expensive battery pack twice as fast then that's got to be included in the long-term costs. You can't just take the great MPG and leave off that big expense.

And then there is all the normal stuff like depreciation, tires, normal wear and tear and repairs. All those are real expenses and no businessman would leave them out--or he'll be out of business soon!

It's like the Sprinter. Lots of businesses gobbled them up to get the great MPG but eventually they discovered the true costs to operate them and dumped them fast.

That's not an attack on hybrids, I'm a big fan of the Prius! But you can't just ignore the long-term costs either.
Bob

 

[Scott_1776]

I have been repeatedly asked if I want to turn my Über phone and use my Droid. Yes I drive part time, along with another home based business I'm trying out and will keep the forum abreast of it's profitability when I ready. As for the wear and tear issues, I drive a Honda Civic and I don't brake for no one! I said it was Fuzzy, lol. I really don't drive a ton of miles over any other job I'd have to commute, too. Everything you do has it's costs, brakes and tires maybe sooner than later, but my hybrid battery loves it, stays charged with mall the city braking. I don't plan doing this forever, it's a stop gap measure.

 

[offroad]

One expensive brake job is $500 to start. Tires $500. Repair of drive train $500. You should plan for $2000 in wear and tare extra early yearly.

 

[vanman2300]

Wonder how the riders react when picked up by a van with a bed in the back?

 

[Scott_1776]

That depends, vanman. Is the stereo playing 70's porn music? Uber has vehicle requires, no vans, sorry. I think some riders would take a nap if given the choice, though.

 

[VanLifeCrisis]

i thought uber xl takes larger vehicles..maybe a minivan

 

[Scott_1776]

They don't in my area allow any vans or crown Vic's for that matter. I do know each territory has different rates and rules, so it might be possible elsewhere. I know I can't go and drive in another area as well. I once drove someone from Baltimore to DC and after dropping them off my app didn't work, it said out of area. But I heard of riders from other areas telling me, sometimes with Uber a regular taxi cab shows up.

 

[offroad]

That's an interesting trick. Register your taxi as an UBER vehicle and then show up to scalp customers. People are so creative.

 

[caseyc]

Here's another update. I've been doing pretty well working for Uber on a part time evening basis. I'm liking the flexible hours so much, I'm considering quitting my day job and doing the Uber thing full time. I'm convinced I can very reasonably earn $200 gross per day by working 8 to 10 hours, especially during prime time hours.

I updated a spreadsheet of my monthly expenses. I have less than $400 a month of expenses that I must pay out, such as $102 for cell phone bill, $100 for vehicle insurance, $86 for gym, and a couple small items. My monthly expenses are actually quite low. I absolutely know I can earn $400 gross in 2 to 3 days of driving. I've done enough driving for the past few weeks to know that I'm constantly busy earning fares nearly every minute of the day. It's literally that busy in my city! No exaggeration. So if I can earn $400 to pay my monthly bills in less than 3 days, that means the rest is gravy. My goal is to earn a minimum of $150 per work day, preferably over $200, which I know is do-able given the good economy.

I really hate my job. I'm burned out. Overstayed my welcome. I'm nearing 50 years old, and I can now truly say I can't stand working for corporate America any longer. I know it's time to leave when I start lashing out at my supervisors and managers and give them rebellious flack. I just don't give a .02 cents hoot anymore, seriously.

What has also made all this possible is doing the van-dwelling thing full time. I haven't paid any rent since March of this year. That one item alone accounts for a greatly reduced monthly expense. After I get rid of 2 credit card debts, I can pretty easily skate by on reduced income, and only working hours I want versus being forced to work more the sake of paying bills.

At this current time, I figure I'll stay at my day job long enough to collect my Christmas bonus, plus last paycheck of the year. Then I'll simply go awol, never to be seen again. Screw them. Screw them all. I'm feeling bitter and mean, haha! Truly, I need to find new meaning in life, strive to be happy versus going nowhere on the hamster treadmill.

In short, the combination of full time van dwelling plus Uber driving will give me much more freedom and happiness in life that I've not experienced before. I'm done with corporate America. Done. Stick a fork in me, I'm done.

Van dwelling and Uber driving. That will be my new future. I'm also considering breaking into teaching, even (gulp) being a pre-school teacher. Ye gads, can you imagine me as a preschool teacher?

So that's my update for now. Had to get that off my chest. Wheeeew, feel better now.

 

[offroad]

Caseyc - much inspiration for the 50 year old burn outs. $1500 cleared after expenses a month is nothing to sneeze at. Don't forget the nasty tax man gets his share if that.

 

[sassypickins]

You go Casey!

 

[akrvbob]

But have you figured out your cost to drive? Figure at least 50 cents a mile, how many miles do you drive?

Don't go into a business without a hard, honest looks at the costs.
Bob

 

[Spirituallifetime]

caseyc & scott I hope you both are looking for good accountants because when you are in business they are very important. An accountant will be able to tell you if you are making a profit on your business and calculate how much to pay the IRS every quarter in the year. If you don't set money aside for taxes you could be in for a shock at how much you will have to pay at the end of the year, at the end of the year uber will send a 1099 to you and the IRS. And your social security tax is 14% since you are your own employer.
Scott the math was VERY FUZZY, the taxes you will owe to the IRS is figured on the net income not on the gross. This is why keeping track of all business expenses is very important. You also need to keep track of all miles driven for business because this will be needed to calculate how much can be deducted for tax purposes, keep all receipts organized by month. Put all payments from uber into a separate bank account so personal and business expenses and money don't get mixed up, then every 2 weeks write a check off the business account to your self for your pay and deposit it in the personal account. This way you won't spend all the money needed to run the business on personal stuff! I have seen many truck owners go out of business because they didn't separate the personal and business accounts, they spent all the money needed to run the business on personal stuff when money was needed for a big expense to keep the business going it wasn't there! I know all this because I have owned a delivery business and owned semi trucks. With 1 semi truck and myself driving that truck I could figure expenses easily going to 60% or more of gross income.
All this can get complicated this is why you need an accountant and not your average tax person. If you don't get your expenses in your taxes an figure the taxes on the gross income then the tax can be more than your profit and you will not have enough to pay the tax!

 

[BC Guy]

Here is some information that anyone working for or using Uber should be aware of.
http://consumerist.com/2014/11/26/u...ivers-contacts-collecting-android-users-data/

 

[HarmonicaBruce]

I really hate my job. I'm burned out. Overstayed my welcome. I'm nearing 50 years old, and I can now truly say I can't stand working for corporate America any longer.

Be sure to sign up for unemployment! I'm not sure how long you can draw it now, but you may as well get what you can.

 

[offroad]

The uber saga continues in my state. The state ticketed a driver or two. Not a licensed taxi service. Now lawyers are trying to create a regulation that covers DIY taxi computer companies. UBER may have to pay drivers more in this state to operate.