Why Uber Is A Scam - Math Explains
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- Опубліковано 20 лис 2024
- Ok so I was looking at this graph put on Uber’s website today and thought it looked too good to be true. How amazing that Uber drivers make more than any other type of driver.
But I knew from my own experience as a rider that Uber didn’t cost that much. In fact, Uber is pretty cheap if you’re a passenger.
Sooooo…. how can uber be so cheap, and yet the drivers make so much money???
Now Uber has cut pay to drivers in Detroit to 24cents a mile , but we’re going to stick to the 90c for now.
Uber takes 20% of the total fare from the driver for older drivers. Newer drivers get 25% taken.
So we’re down to 67.5c per mile.
Then you have to deduct tax:
In some LA County's, sales tax is as high as 10%, and Uber doesn’t withold taxes for you. The drives are responsible for keeping this money aside to pay the tax department in April.
So with the 10% deducted, we’re down to (just over 60 cents) 60.75c
Now we need to factor in depreciation of the car. A car is an asset like anything else, and will eventually wear out and you’ll have to buy a new one. Every mile you drive decreases the value of your car and brings you that much closer to needing a new one. This is a big problem if you drive for a living, you’re going to need to buy a new car every two or three years and the cost of a new car is significant.
The IRS estimates vehicle cost to drive a vehicle for work at $0.54 a mile .
Broken down into
Fuel costs @ an average of 12c per mile
Depreciation at $0.24c per mile.
Repairs, tyres, & maintainence at 9c per mile
Insurance, licence, registration, finance, fees - average out to around 9c per mile
So with 54c depreciation, repairs, and fuel accounted for, we’re down to just over 6c per mile that actually goes into your hands of drivers.
Given that Uber also asks its drivers to buy things like bottles of water, gum, and chargers for it’s passengers, we can say for certain that driving for Uber pays well below minimum wage or even worse, costing drivers money (as is seen directly in this actual fare uber charged one of it’s drivers).
So given the math is so bad, why does anyone drive for Uber?
Here’s an example of a post an Uber driver posted - he was $400 behind on the rent, and needed to make up some quick cash. In a way, uber is kind of like a loans scheme.
Now for some people in desperate circumstances, what Uber’s offering might be an acceptable deal. But for most people, driving for Uber is a waste of time. I wish Uber would be more honest with people. By our calculations, the amount you’re making as an uber driver is nowhere near $19 per hour. If you drive 30 miles per hour at 6.75c per hour, you’re only making $2.00 per mile - by far the worst choice of any transportation job.
This number is supported by Not Cool Uber, who have tracked hourly earnings to be around $2.89 and, after vehicle fees are taken into account, $0.
Now - I’m not against car pooling. We all need transport, and I know I am a frequent user of Uber & Lyft. But I think that Uber is going about it in an unethical way, which makes me unethical for supporting them as a customer.
Uber could easily fix this situation : by reducing their commission, by making rates more reasonable, by giving riders the option to Tip their drivers, or just by being transparent. But that would mean admitting that they’ve generated significant revenue from effectively exploiting their drivers. So the truth is, Uber benefits from maintaining this status quo. Uber is currently reported to be making $10 billion in revenue per year - and that money has to come from someone.
Just don’t let that someone be you.
SOURCES
www.bloomberg.c...
observer.com/20...
This video is presented by Jayde Lovell, produced and edited by Yohana Yoshe and Janina Soriano.
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I am an Uber driver and I can speak from experience. I am in KC and I get 85 cents per mile. First of all, Uber only takes 20% from me and every driver knows this going in. As far as taxes and car expenses go, you get a 54 cents per mile tax DEDUCTION at the end of the year to offset all the costs associated with driving. If you are diligent in keeping track of all of your miles, you can claim into the negative profit which means $0 in taxes. The video also doesn't take into account Uber surge rates which do happen quite often, especially if you know where and when the best times are. The video also doesn't take into account actual ridesharing where I am out and about anyway and just turn on my Uber in case it should happen to ping a ride. The video also doesn't take into account cash tips that I sometimes get that goes directly into my pocket.
Ya, Uber could be better, but videos like these only look at the parts they can pick and choose to be negatives and have no real world driving experience.
Hey! I didn't actually mention income tax in the video, so there's nothing to deduct from. You still have to pay sales tax - you can't deduct from that. And whilst we didn't mention surge pricing, we also didn't mention 'special' pricing, like how USC students get 50% of fares. And Uber doesn't make up the difference - it's only after taking them the distance that the poor driver realizes he's only made half the normal fare. No matter how you do the math, no one can actually show that you get the full $19 that Uber claims you make. IE even if all your points are correct (they're not), Uber is still blatantly lying to their drivers. - Jayde
ScIQ There is no sales tax with an Uber ride. There is nothing to be sold. So, yes, income tax is what is paid, NOT sales tax.
Here's the thing. This video goes on to explain why Uber is a SCAM. But all the video does is tell me that running a business is going to incur expenses. That's like saying, opening a restaurant is a scam because it typically takes 5 years just to get your initial investment back and you have to pay employees, rent and electricity.
A scam as I am making good money!!! lmaoo omg this is so sad man these buffoons are the losers of Uber and dont know how to make money. It is NOT the same for all of us and depends on many factors. I AM MAKING MONEY AND DOING GOOD HELLO HELLO HELLO JACKASSES
lloplop These people wanna talk about your car depreciating in value. Well, it's going to depreciate in value whether or not you drive for Uber. Do people consider their car depreciation when they commute to work and back every day or go on vacation? Didn't think so.
I have a full time job and I drove Uber Eats a few hours a day on my way home from work. I made $25.00 last week delivering. In one of the trips, I waited 30 minutes at a McDonalds for 2 quarter pounder meals, a 10 pc chicken Mcnuggets and 2 drinks. Between waiting for the food to be ready and the drive, it took me a full hour to finish the trip. Finally, I gave the food to the customer and I was paid $3.75 and the cheap ass customer did not tip me. So I went to the McDonalds website and applied for a part time job flipping burgers. I now make $8.75 an hour flipping burgers, cleaning toilets and taking out the garbage and I'm not wasting extra gasoline and putting milleage, wear and tear on my car. Working part time at McDonalds is 100% better than driving for Uber.
Sad sad saaaddddd truth!!!!!
You should respect both
STOP EXPECTING TIPS! I don't tip anyone. . . . Things are high enough as it is
I've been trying to convince my friend of this . Base on this video perfect job for crack addicts b/c all they want is a quick "hit". When I drove for a radio group, the cut was 10% if I can wait for a check and 15% if I wanted cash. If people broke it down they would find out Uber is a scam, but they do get drivers. If they are a billion dollar company isn't 25% too much of a cut.
If you work in California it's $20/hr minimum wage for fast food workers.
Just quit Uber last month, went back to selling weed
you smoking weed? you didn't get the memo?..... you were supposed to sell, deliver and drive.
you could do both xD at the same time hahahah
J Rod lmao
You had left weed for Uber? Wrong move.
Then can I buy a dub sack from you 🤷🏻♂️
I remember this video had hella thumbs down in 2016 when this was first put out.... Fast forward mid 2019 May as I post this. THIS VIDEO IS THE TRUTH!!!
as a former uber driver, this is spot on
I'd say it's easier to disagree as a consumer, but the math and IRS tax estimates for vehicle cost are spot on. If uber driver's were truly independent contractors they'd have the right to set their own rates. From a legal standpoint these drivers are misclassified.
J.P. L. Again and again Great deal for the customer a loosing deal for the driver J. P. L. you said it best you were an actual driver.
My wild guess is that people who disagree with J.P.L., or the video, probably do not do well in understanding their true costs, the true time spent on a task (stop current task, get to location, perform task, return to prior task, resume prior task), and other costs most closly associated with taxation, fica, and the like. As stated, people who do not see the light are Uber's targets.
In the corporate world, the true cost of an employee is called the "burdened" rate. In most tech-based corporations the burdened rate is about twice the salary. So it is salary, plus: cost of health insurance, employer share of fica, medical insurance, shared cost of facilities and capital equipment, travel, shared cost of legal/marketing/sales/service as appropriate, and other employee benefits.
As it sits, Uber and those like it, are headed for collapse. At some point they will have no more "marks" willing to work at $2/hour; the cost of autonomous cars will drive up fares/drive down demand, and the weight of stagnation will eventually shrink profits, increase liabilities, and drive it to its grave. Until then, the owners will strap on the party hats and get rich.
Rick Chumsae Uber is highly invested in autonomous cars. 2 years ago, they poached the entire autonomous department from Carnegie Mellon.
the only future uber has is through autonomous transport
Uber is just waiting long enough for driverless cars to replace there drivers
Yeah, 14 years, I'm not too worried.
mobilitylab.org/2015/08/18/ubers-plan-for-self-driving-cars-bigger-than-its-taxi-disruption/
those would cost more because then they would have to purchase vehicles, gasoline, insurance, and the support infrastructure for the fleet.
which would cost less overall without doubt.
How do you rationalize that, right now Uber makes 30% to 50% of the riders payment, only spending networking infrastructure and an "insurance policy" that never pays out.
Self driving cars in 20 years would dive deeper into profits and take all liability onto them, no blaming incidents on contractor drivers. So then they'll raise prices for their interest?
Why not raise the price now, or let the "contractor" drivers set their price just like plumbers and carpenters do. If they're a better driver or service or amenities or vehicle they shouldn't have any problems.
Not hard to follow the math, no matter how you run the numbers, it's a minimum wage job, no benefits, no workers comp insurance, and they run their vehicles into the ground. The current setup takes advantage of drivers with a flashy marketing scheme.
They don't have to make money know to convince people they'll make money eventually, which is true. If they can't raise anymore VC money they would just go public to raise the money. If Amazon is any example they won't need to post a profit anytime soon.
You're right the math doesn't work out any time soon, it just doesn't have to.
i always thought uber was great for the rider, terrible for the driver
you've been right all along.
If it is terrible for the driver then wont they stop driving with uber? Yes you can say that "oh they don't realize taxes and the commission that uber takes". But if they look at their paycheck after taxes, then they will realize how much uber is taking away. Then people will quit doing uber and choose another transportation service or another job.
+MrFantasticGuy how dare you use logic when people are letting out their bile against the free market economy...don't you know making sense has nothing to do with this?
That's the point, taxes aren't taken out of your paycheck because Uber isn't a normal employer. You have to pay taxes from your savings. Also, some employees can't just quit. What do you say to an overworked college student living below minimum wage?
Do you have any idea how stupid you sound?!
1 uber doesn't take out taxes
2 it is shit for the drivers but it may be all they have (to spell it out for you: if you owe 10 dollars a month in living costs and you only make 9 dollars a month with uber, isn't it better to only owe 1 dollar as opposed to saying fuck uber, not having anything else in this economy and owing the full 10?!)
3 by the logic you chose to use: if child labor in china was terrible for the child laborers, wouldn't they stop doing the work?!
Yup drove for two days years ago and realised the scam and never looked back again :)
*z
I drove for Uber, it is complete crap!!! Uber is the Walmart of moving folks...great for customers, crap for drivers
michael schneider I totally agree with you!!
>great for customers, crap for drivers
So, in other words, the all-american business!
michael schneider amen!
If it was the Walmart of moving folks and comparing to moving freight... You're actually saying they're top of the line! Walmart drivers make between 85 and 130 thousand per year. It's a very very coveted job in the professional trucking industry.
Joshua Daniels Yes. For some bizarre reason they do. Makes me laugh. But. Do you how many truck drivers they employ? The percentage of drivers to other lost souls employed by Walmart?
7,200 drivers to 1.4 millon American employees. Im always amazed how average Americans love to support the ultra rich instead of helping the low self esteemed lost souls of our country. All i can come up with is a lot of folks feel better looking down on others
Uber is a side hustle not a career in my opinion
Okay, but you still have the depreciation of your car because of increased wear and tear.
vangrails that's why my mom is paying for my gas and car lol
There isn't a "side hustle" exception to the minimum wage.
(I know Uber isn't legally subject to minimum wage law but if Uber was paying their drivers fairly they would be earning at least that amount)
It's a bad side hustle. Might as well sell cookies and lemonade. delivering pizza is WAY better than uber if you're in a pinch, and you can drive a shit car.
vangrails Keep in mind she was slightly off on that. If you drive for money, depreciation should be considered as taking energy from your vehicle and converting it to cash in your pocket. Dont consider depreciation of the vehicle as if it's being taken out of your pay. It's value thats being converted.
Don't forget that Uber is not responsible for on the clock accidents. A friend now an ex uber driver and his fare got t-boned. Uber didn't do a damn thing of paying the insurance lease, so he and his rider have been in and out of court with the uber company. They're saying that they're not responsible but the judge ordered Uber to pay a total sum of $700+k in car damages and hospital bills. Homie got a new car from his insurance company.
That's why you're required to have your car covered. It'd be more money out of their pocket otherwise.
EvlDmon No they don't, they paid my friend $130k between hospital bills and new car. Uber had to buy him a brand new car by order of the court and his insurance policy
Great
Requiem Entertainment great
J Smith wow! Ur not a legal expert? I hardly can't tell!
I drove 2 days for Lyft and called it quits. I've used Lyft since then and always give a great tip in cash because I already know they're not making much.
It’s not they are not making much but they spend all the money they make very rapidly in the same week. And all they do is to get that that money they spent back, at the end of the week and then their bank accounts don’t go up but instead they stay at the same level during months and months. Uber and Lyft are good if you got fired from your job and then instead of waiting to be called for an interview and loose all of your money. You can drive and make some cash during that period till you get a new job that pays well.
Being a successful driver takes strategy. Youre not going to learn it in 2 days on your own.
You forget that in America we can write off our vehicle as a tax write off. Most people can pay below 5% if not 0% tax while driving with uber because you can expense all the maintenance, gas, and even buying a new car
This is one of the best counterpoints I have seen in this message/comment thread.
That HAS to be factored in. If all your expenses are tax deductible, then that is a huge offset to the taxes charged for the income.
Yep, the cost of the car is deductible as tax. Still considering that you just end up making around 13 cents/hour (because the car expenses greatly overwhelm tax).
It's all fun and games until your 3,500 transmission goes out
God damn true
Yeah, mine did but it was only after a few months of doing it part time, so I can't blame Uber for it, Uber simply pushed the expiry date forward. Luckily it was under extended warranty. I have to earn a little more to pay off my Vet debts and then I will only work events with surge pricing.
@@bruceohandley2024 Point being most drivers do not factor any overhead like vehicle wear and tear, tires, wiper blades, car washes, repairing damage when a rider dents your car with their suitcase, etc etc etc. It's a sucker deal for the driver.
@@kingsleyzissou1120 it's not much different than delivering pizzas.all is well and good if you have a well off relative to help you get a really decent new or near new car but for the most part i have seen the cars used for the jobs almost as old as their owners.there were some exceptions.
@@franzchong5889 It's a lot different. You can deliver pizza in a shitty car, your car is never seen by the customer.
Great recap but, you forgot a couple of things. I am an Uber at least for a short time. In addition to the commission charged Uber also charges the driver $1.00 per fare off the top. This dollar is suppose to pay for a 1 million dollar liability policy but, the catch is the million dollars does not cover the driver or his vehicle. It covers UBER! When Uber sends you a fare and you get there and find out it is for 6 people and you only carry up to 5 you do not get a cancellation fee even though Uber screwed up. They have you listed for up to 4 passengers, yet the rider ordered a car for 5 and you have just traveled 10 minutes and several miles in city traffic and Uber says too bad. Uber does not take care of their drivers.
Think twice about your investment with Uber.
Really? Here in brazil you get paid the minimum ride fare if you drive at least a minimun certain distance and the ride gets cancelled.
As I've understood it from my insurance agent...
* Uber's liability insurance covers them and the passengers
* Standard car insurance doesn't cover you/your car since you are a commercial driver
PI Liberal true BUT you can call and add a "business use rider" to your policy...it's cheap, like $20-40 per policy term, just a few bucks a month extra...and if something happens to you or your car while you're conducting business you're covered by the terms of the main policy same as if the accident happened during a personal trip. I had this on my policy when delivering pizza, THANK God, because within a two week period my car was stolen and while they were paying for a rental car, some drunk asshole hit me, totaled the rental car and ME and fled the scene (was arrested the next day) and he spent Easter Sunday in jail and hung over....if I didn't have that rider on my policy, my insurance would've told me to go hump a tree...but they had to pay up ...both for the stolen car, the cost of the rental per day and they had to pay for the totaled, brand new rental and medical. That one phone call and the extra few dollars a month saved my ass and was totally worth the time on the phone to add it...which was just minutes ...
I also worked Chicago in my own car. Worked 11hours a day, and after adding everything up I was making $4 an hour. And not counting the wear and tear on my car.( I had a $4000 ex police car) I tried working different hours and locations for 3 months. ITs a rip off. And the no tips thing? Why am i going to buy you water and gum for a super cheap fare and then not even get a tip? And I swear the last week I worked, I was running large quantity drug dealers all over town.
I bet Uber didn't screw up, I bet the riders didn't want to pay for the upgraded service to take all of them and ordered a regular Uber. happened to me 3 times...
Uber expects no less than 5 star ratings , they want you to work for stars and points not money . They play psychological games
Uber doesn't hire you. You hire Uber. People still don't get that...
BP stfu you baglicker
Exactly! They studied our habits and rigged the app. I heard they have a psychological Department. I have doing this for almost 3 years and I am definitely ready to quit in the next couple of months. I can truly see I rigged the app is now. I they have taking things way too far. I did really good yesterday and came out this morning and I always work the Monday morning shift, but today they only gave me 3 calls in 3 hours. I rode all over Atlanta. I knew for a fact they had cut me off for making any money. I don't want me to make too much and take time off. I have noticed that. Because your money off to make you work longer. There is no other reason to go without a ride in downtown Atlanta. They try to run out your time limit so you can only make so much per shift. Or they just stop sending you rides. It's all to get you to come back out later. And I notice every time I get close to $100 all right at $100 my calls stop every time and I have to log off and try again later. I am stuck in a Uber rental because of my accident so I'm really feeling the pain because I can't maneuver between both apps. I really see how dirty Uber has became since I've been doing it for the last 3 weeks consistently. It's sad how they play the drivers. As much as I like doing it, I have to quit. I find myself getting more stressed out waiting for calls watching people leave concerts and games. It's not a guarantee that you will make any money no matter how long you stay out. But yet they allow you to run your gas and drive around knowing that they're not going to send you a call. They just want to keep you online.
N T just wait until you calculate your time, gas money, pay taxes, etc. It’s a scam .
@Ivanto Jamalot Certainly NOT modern slavery. Its a job! A decent job. Its not a career or a lifelong profession.. its a job! It certainly helps a lot of people, otherwise people wouldn't do it.
I am an über driver and let me say everything this lady said is absolutely true. Sad but true. Truth be told.
Do you still drive for uber?
So why do you still do it...??? You just support the scam, which is why they can still be in business.
nope, the only reason they are in business (and why they appeared in the first place) is the billions of investor money
Kevin Liang ... I still do sometimes but I cut back a lot.
She's not really right. If you're smart and not afraid, in some cities you can make some fast money. But she's definitely cute. Looks like a good passenger. But eventually cab apps will disconnect you because the crazy, hideous passangers will get to you. At least half your money will go to taxes, car, insurance, maintenance, tickets... if you drive safe!
I just got my taxes ready for 2016. I drove for Uber for 3 months in winter 2016. Uber said they paid me $4181.56. $1170.05 in January, $1796.76 in February, and $1035.74 in March. I was able to take home $2364.63 however this does not deduct insurance or w & t. Anyone who drives for Uber knows the w & t costs are through the roof. Also, insurance costs are through the roof to have rideshare insurance that is why most drivers don't carry it. And don't forget that if you have a used car Uber has a year limit on how old your vehicle can be. Driving for Uber full time for 3 months I brought home $2364.63. Divide that by 3 and you get $788.21 per month. Divide that by 4 and you get $197.05 per week. And this is not figuring in w & t and insurance. This video is spot on accurate.
Did you know that you can deduct the car depreciation from your taxes? where i live(Puerto Rico), i can deduct a Max of $6,000 on my taxes calculations(on the US is $11,000). This is because i can deduct 10,000 miles from using my own car at work, at a rate of $0.60 per mile. You can also deduct the gas expenses, repair expenses, Etc.
Depends where you live. Some people don't get anything but the set mileage.
What is W & T ?
If I continued to drive for Uber .. I would be homeless 🏡.
This is good for future competitors
@Yavuz Adam No. Uber doesn't hire you, you hire Uber as a platform to make money. As simple as that.
i am homeless lol
🤣🤣🤣
I’m making 40k in a low cost of living part of country. Y’all must be stupid
And 90 percent of the riders don’t tip!
James W. Thompson, Jr. I always tip. I figure that’s what they live on
I always tip. Sometimes I tip in person and also an additional tip through the app when I don't have enough cash on hand.
94% of mine do...
@Moe Snert always tip cash at restaurants....heard too many tales of managers taking that shit...
Why would u tip... the uber driver keeps 90% of the fare....at least thats what the general assumption is... Its not a taxi. Where they get no money from the trip unless u tip them. Only reason u tip is 1 the worker soley depends on them. Waiter, baretender, taxi....or they went above and beyond doin something special.....uber driver in his own car expects a tip? Lmfao good luck...ive tiped only a few times for special reasons otherwise theres no reason to.. they are making money on ur ride. Sometimes really good money depending on supply and demand.
Anyone being self employed understands this.
Uber sucks for the drivers.
The New Crusades no it doesn't lol
*DO NOT* rely on tips. You did this with restaurants and such and it is a slave system in many cases. Do not repeat this mistake.
Zahlenteufel1 ? Servers make amazing money on tips
Zahlenteufel1 when you say "you did this with restaurants and such" who are you talking to? who is "you" ? The employees? The employers? The whole labor system?
Servers do not make amazing money on tips at all unless they are on the right shift at the right job in the right town. I know servers at a waffle house where 1st shift makes alot of money but 2nd and 3rd shift servers make maybe 100 a week in tips. Sometimes not even that
Yeah screw tips. The less businesses with tips the better. I know waiters get paid well with tips but I'd rather that cost just goes on to the bill.
True. I am against the system of tips. They should have proper salary so that they do not have to rely so much on tips
I’ve done the math also. You’re actually loosing money by driving through Uber/Lyft! It’s all a scam!!
super kid you don’t when you have to pay for wear and tear on your vehicle
super kid Lol do you own a car of your own and have to pay for it? Shit gets wore down after a while but specially driving dumbasses around all the time. I’m white btw
@@alowlytarnished5579 No but my dad drove for uber for 4 years and there's no way he fed 4 people plus pay for citizenship plus pay for multiple plane tickets plus have a nice house for so long if it didn't work.
super kid I’m sure he saved money from a previous job or something to pay for all that
@@O_Canada No guys lmao. My dad made money off uber. Dont believe things that are told to you on the internet and try it yourself. Honestly dont give it more thought.
"Or by giving riders the option to tip their drivers."
1) You have the option to anyway - there's nothing stopping you.
2) Encouraging tipping as a means to overcome an impossibly low wage isn't an option - you're just shifting the requirement to pay your workers from the employer to the customer, who's *already* paying for the service, and shouldn't have to subsidise greedy employers.
HaniiPuppy This also applies to restaurants. Tipping is yet another way for companies to shift their financial burdens to others. It should be abolished.
ive always tipped my uber driver 20 bucks...ive only ever gone a few miles but the conversations are much better than with taxi
Agreed. Tipping should be abolished.
Rideshare drivers are independent contractors. They don't "work for" Uber and Lyft.
"1) You have the option to anyway - there's nothing stopping you." As the app does not allow you to tip, you just can't tip, it's not an option at all. If you are thinking cash, it's not the 90's anymore. People don't carry cash.
Not to mention: Über drivers are not employees. They are considered contractors, so they don't get employee benefits or insurance or hazard pay.
A car lasts 2-3 years? What kind of cars you buying
I think she's using cars you lease as an example...
Crystal White Mustang If you get into cost per mile, ALL vehicles, maintenance costs and repairs go up drastically at 3 yrs. Tires,shocks,fluids,etc.
Deez nutzz
SpareKnives when you use it for transportation 3 years is the max...u think u smart lol
SpareKnives when it comes to work cars it is about MILES not age! I know plenty of insurance salesmen who put 80,000 miles a year on their car! A 3 year car with 80,000 miles is 240,000 miles! The average Japanese car makes it 220,000 miles because the cost of maintenance totals the value of the car!
I was shocked to find that Uber has never made money. Everyone is getting scammed, the drivers, Uber corporate employees, stock holders. Only the riders are getting a great deal.
Not any more!
Just because the company has never seen a profit doesn't mean corporate employees and big wigs aren't getting paid. They are lol. Trust me.
So you believe scammers when they tell you they don’t make a profit?
They say this publicly to hide guilt.
It's absolutely false, the executives make obscene amounts of money. The CEO made over 1 million in 2020, and so did many of their executives. They say they aren't profitable to hide profits that they don't want to share with shareholders. Snapchat made similar public statements the past 10 years, while their executives were raking in money, Evan Spiegel was THE highest paid CEO for several years, look it up. Yet somehow Snapchat wasn't profitable? Yeah right. There are serious corruption issues going in the stock market and public companies alike, our government has allowed criminal activity against shareholders and workers alike. The average person really has no idea how much they're being fleeced day to day. Consider Apple CEO Tim Cook who says it's too expensive to build an iphone in the U.S., they literally made 100 Billion with a B, in 3 months in PROFIT, that's after paying all their workers, materials, equipment so forth. Guess what, the stock price barely even moved, because they raised spending, aka funneled more profits to executives.
Founders made over $1 Billion each
As a former Uber driver in Brisbane, Australia, I know I worked 80/90 hours a week to clear $250/300 a week. That’s an average of approximately $3.00 an hour. Then, as I was leaving the work, the government introduced GST to rideshare drivers so I needed to set aside the equivalent of $5,500 a year, which would bring my average weekly take-home earnings to about $194 a week. I got out and now, as a traffic controller I work 40/55 hours a week and clear between $1,400/1,650 a week. A biiiiig difference. Thanks for posting your findings.
It's a rip-off for drivers..
Dude I make 1000-1200 every week in Boston with Uber. Don’t speak on places you’ve never been. Uber Partners make more money per hour in Boston and New York every where else seems to not be making money
What were you doing wrong, Jet? I made $300 pre-expenses/tax last Friday night over 8 hours in Adelaide...
Jet Sparrow man may be you were driving with your app being offline. Next time you think of driving with uber push the Go button before you start
SkySun Magic 😂🤣 love it.
I drove for Uber as well and this video is true. It's just a immediate way of getting money
I mean, I don't disagree with you or the whole video, but did you actually have to buy a new car every 2 years? :D
No, you dont have to buy a car every 2 years. Just depreciation cost is a reality, either you want to see it or not.
The same like paying tax. you have to pay tax , either you like it or not. And if you dont take account of all those costs then you are loosing money.
You are getting some cash in the moment that you are going to give back in the future.
It is like 1 + 1 = 2 either you are aware of it or not.
Sorry mate
True, and she didn't get into the whole new car pooling Uber rider thing..... which every Uber driver that I have ever spoke with hates that Uber offers Car Pooling with other riders to save money...... they say that no one is ever really close to one another and their final destination is not close either, which makes them go out of their way and waste more gas and time.
Anybody who buys a car at the dealership is a sucker anyway...
Depreciation only matters when you're selling your vehicle. I mean... yeah you're speeding up your maintenance intervals, but not to the point where it's gonna prevent you from driving for Uber. In fact, it may be lucrative enough to profit from. I'm not an uber driver or customer. In fact, where I live, Uber doesn't really exist. I'm just saying this from my point of view.
Uber only works if you’re savy on what time to drive and doing it part time.
@Jose Diaz yea its should only be used as a small supplement to youre income.
@@Ace-sb4il Why?!? Lots of lots of drivers making decent amount of Money, paying bills, mortgage, etc. Lazy people will always be lazy.
@@Ace-sb4il $2.hr is not worth it, even as a supplement.
@@fogrecordsusa7169 who told you we make 2 bucks a hour? I just made 50 bucks in like 3 hrs in a small city.
Jones206 is true
I will tell you as someone who drove Uber myself, it’s not worth it. After taxes , fuel, time, etc., the pay is absolute shit. I drove for 8 months in Guelph, Kitchener, Waterloo - Ontario Canada. Great service for the rider, and huge money for the business shareholders, but total scam for the drivers. Don’t believe me? go try it for yourself
The solution is that drivers unite and creat their own app, the good news is 100s of driver donated to make it happen. The app in progress and will lunch med of August in NJ and then NY and nationwide. Driver will receive $1.25/ mile and $0.25/ minute plus a resnable fee for pickup! Drivers will recive 86% of the fare and the company will 15% to cover the platform expenses
Plot twist - She's a taxi driver.
+PurpleSprite Haa!
Travis formula for success :
Uber more Low rates = (more happy enthusiastics, dynamics,efficients mental retarders drivers) + (more cheap, frugal, entitled, rude, libertine, disgusting, arrogant, tclassless, shameless drunks pseudo riders) + (less taxis)
Lmao
+Shamman66 so Uber starts charging you $0.50 a mile for a customer are you going to still work for them when we go down to $0.25 are you to work for them still
+Shamman66 and just to let you know I don't have a problem with Uber I just want to see them get rid of surge pricing quit saying you're cheaper than a cab company and then overcharge people the lot of the customers I've been picking up that had been coming back from Uber have been overcharged a lot cuz once these people realize how much wear and tear puts on their vehicles they will see how much they really make
+Tony Knippenberg Soo shabby and selfish person you are; think in all the money you help to save to all this poor drunks passengers you take home after all the money they spend in all this fancy restaurant, bars and strip club, just think in all this travelers you take for such affordable fares after all the money they spend in airlines tickets , hotels food
Just think how great you are helping all this humans to save a lot of money with your little and irrelevants sacrifices in your Santander leased car
Uber is the coolest scam, exploiting the unemployed
Uber drivers basically are not really getting paid!The money they get is coming from their car.
Exactly! They should be paying drivers a monthly fee for the use of their vehicle & it shouldnt be cheap for Uber either. The fact that people dont consider this is mind boggling. Not only are you renting out your car to Uber but you are also giving them your time, providing them with a service, submitting yourself to their rules/enforcement & you are at the mercy of their clients. All things considered you are giving Uber a lot for very little in return.
@@joelmorin99 If you delivered pizza,at least your an employee.
Y’all know it’s tax deductible. You prob won’t pay taxes in April
Also you can add your expenses as write offs
Are you kidding, I love having to drive my Mercedes Benz 5 miles, pull up and wait and wait and wait for the rider to come out of house, drive them 1 mile to In & Out Burger and get paid $2.80, which is less than they paid the ATM machine to get the cash to pay for the #1 combo with onions
"pull up and wait and wait"
I've done the job more than 2 1/2 years and have almost 7,000 drives under my belt.
More often that not, if I see that the ride is going to be short (with Lyf+ you can see that info) or if they're taking 3 minutes to arrive I just cancel it. I'm done with that sh**.
They warn me, "your cancellation rate is increasing." Cool. "Fire" me. Like I give a f** anymore with your decreasing wages in the best economy in American history. SMD
Buying a New car every 2 years is a ridiculous statement. Taxi drivers keep cars for several years.
Most of her statements are ridiculous xD.
I've had my ford focus for over 10 years now. Fuck I am old.
American Fuel TV Bullshit
You have to take into consideration that taxi cabs are built to last. Not your common consumer car.
new car every two years? more like ever six or seven
Plus getting a slightly used car saves massive amounts of money
Not to mention that if you can do the basic repairs, like changing oil, spark plugs, tires, etc, and the fact that, as a small business, there are a lot of tax write-offs there, like fuel, maintenance, insurance, hell, maybe even a dedicated uber car, the savings start to stack up in very short order.
Yeah. This Australian lady is wrong on that. I bought a car that's a 2014 and in flawless condition. The amount of money I make in one weekend pay for that entire month's car note. And I plan on keeping this car for another five years. It's not like I'm gonna do ride share full time for the entire time I own this car. Why would I buy a new car every three years?
New cars don't break down. If your always in the garage your losing money
+OvAppolyon save yourself $100 per year by doing your own servicing is hardly going to make a difference
Buying a new car ever 2-3 years?
Bullshit.
K 9501 right most taxis are over 10 years old if u buy a Toyota Corolla or something it will go 15 years easy
K 9501 Definitely bullshit. You called it.
I feel like even with a car like that if you're driving it an insane amount which to make any money with these companies it seems like you have to, it's only a matter time till it craps out.
If you're just putting a few miles on it every day going back n forth to work then it can last. Am I wrong?
K 9501 uber requires your car to be 5 years old or less
10* years
When I did the math, I found out that I am making 8$ an hour working 60 hours a week!!! You end up making money but wasting your time.
The only way Uber is good, only if you don't have a job but you are looking for a job and just trying to make some money to survive, or if you are already driving for a destination that you are already driving to. That will pay for your gas!
Absolutely agree with you. I drive uber to get to my main job and back. Once they cut the destination trips in NYC it made no sense.
ua-cam.com/video/T4HnV0J5uPM/v-deo.html
The 25% uber cut should be WITH taxes inside, then it would be fair.
This is true and not true at the same time. If you do your taxes properly your good. Gas is a tax deductible, internet and your phone is tax deductable, any maintanace you do on your car is a tax deduction, buisness expenses are key, car payment is tax deductable if you dont own your car as well, if it looks like your spending more than you make, you dont have to pay the man, but if your an idiot and don't account for this than yeah your not gonna be doing so well lol.
EZwA this is so hard to read. can you write normally?
+EZwA A "smart" person can make decent money driving for Uber. That requirement does eliminate a lot of people, however. It doesn't cost 54 cents per mile to drive a car, unless you want it to. If you buy a new 30,000 dollar car for UberX, you are doing it wrong. If you pay 600 dollars for a set of tires, you are doing it wrong. If you pay 90 dollars for an oil change, you are doing it wrong. I pay maybe 25 cents a mile IF that to drive my car. Then, the 54 cents per mile can be used to reduce my costs even further.
+EZwA Actually, I am wrong about the 25 cents per mile. It is more like 15 cents a mile.
+EZwA English please? What costs $1.30 per mile? and how?
I drove for these guys, they completely bite. They use a completely unfair star rating system in which if a passenger is having a bad day, they will simply hit the one star and destroy your whole entire career. Real fair right?
EZwA what the fuck are you typing lol
Haz Gaming - Funny moments! Uber language i guess.
Haz Gaming - Funny moments! His typing seems like a 7 years kid keyboarding
mindfreakSunny yea lol
laotzu4272 At the time I did. When that's all I really knew how to do and that was all I was good at, at the time. When there wasn't any plans of getting screwed for doing a good job. Since then my expectations have gone way up and I no longer depend on anybody for a career.
''give us the option to tip our driver''
NO.
YOU should not have to empty your pocket so he can eat tonight, his EMPLOYER should be doing that.
#stoptipping
I like Lyft cause if I want to show appreciation for good service I CAN... freedom of choice is wonderful
You are the employer.
+Ebon Hawk did you not hear that we are independant contractors? lol
+Ebon Hawk In some areas there's laws in place so an employer can pay less than minimum wage provided the tips can cover the difference (think like waiters and the like)
YOU are the employer
Working for Uber is like an undercover homeless
😂😂😂😂😂😂😂
😂😂😂😂😂🙈🙈🙈
Lol
lol
Brilliant 😆
I used to drive with Uber and I stopped because as you calculated the income and payments in the end of the day I end up with no money, paying for car, maintenance, gas, taxes and cleaning all that from the 75%, uber takes safe 25% in there offices without risking there life in every trip like the driver, it’s a big scam.
Coptic Christian?
Uber is meant to be a side job not a carrier...eitherway trying working for a cab company and see how lil u actuaully make in comparison..unless ur in a big city like new york etc.....uber pays alot better..
Yesss!
The IRONY when I get Uber advertisement watching this video 😂
Christian Djami same here in India
That is not Irony... thats a coincidence.
It's definitely not a coincidence. It's a deliberate choice made by Google Ads. The title mentions Uber so Google assumes you are interested in using Uber if you click on it.
There's a pool of ads associated with the video, thus it is still coincidence.
Guiyz stap fighting! Can't it be an 'ironic coincidence'?. Irony does not have to be deliberately intentional, only seemingly intentional; which is what Chistian Djami has interpreted. Although, irony is usually is used in a literary sense, not a visual one.
I drove for uber for a year , unless you do 12 hr shifts, at least 6 days a week , you really can't make a living , I hated every hour of it , , oh and as for pool jobs ! Forget it ! Great for the rider , poor drivers get Fucked ,
it's meant for supplemental income, now full time work, and on top of that it's not like it's breaking rocks for fuck sakes you sit on your ass all day
In morning rush hour I make 80-100 in 3 hours
In 8 hours I make around 120-160 on a weekdays working 4am-1pm
On Fridays 11am-3am I make 300. Saturdays I work 12pm-3am and make 375-400. Plus incentive
It works if you save gas receipts, maintenance receipts, lunch food/breakfast receipts etc.. just gotta know how to make it work.
Meldoies17 bollocks , when you calculate the mileage and what the rate is even on Serg prices it is impossible, stop telling lies to people , your bang out of order !
Marios Apostolou lol dude I make my money. Idc if you believe me or not. In the city of Boston ubering is the shit.
Meldoies17 I speak as a Londoner , are you in the USA ? If you I I cannot comment
Uber is a scam, because as soon as you get smart enough to see it, you get deactivated. Click thumbs up who had this exact experience
Everything Life BIG FACTS
I am waiting with my lawyers to do that by them. My Uber score as a full time driver in Chicago is 4.97.
@@maroni64 those ratings don't mean anything to them .. besides they are fake
@@desertknights5003 can you explain to me what the first post was about
All the in app complaints got sent straight to my council so I've had my licence revoked, forget being barred from the app. The authorities don't believe customers false report for a free ride.
I could challenge it in court but I can't afford a solicitor. I'll have to represent myself...
Im from a developing country which has a minimum wage 300$ monthly. Im living in houston tx. I swear here uber driver gets %40 less than a taxi driver in my homeland. Its just a slavery
Uber is so cheap and convenient for riders, but it's horrible for the drivers, and now they've put all the legitimate cab companies out of business. I think any job that will let anyone work for them is not going to pay employees fairly.
Drivers for Uber aren't employees, they are self employed contractors, driving for Uber. Uber drivers hold a contract with Uber. This is what many people don't know or understand.
There are no legitimate cab companies.....they are all rip offs....uber proved this...
jim ponte absolutely correct, they form a 1099 agreement. Jim, also Uber is such a pain in the rear to the transportation industry as they claim not to be a taxi service, rather a tech company. This is totally unfair as they went to state reps and lobbyists to holster a way to avoid and be exempt from all standard regulations! Uber also claims to be no way responsible for any liabilities as they have independent contractors in the field; there was a family who tried to sue Uber for a devastating loss to a six year old daughter in an accident, the ‘tech’ company denied all responsibility. I’m not at all feeling sore over Uber’s terrible losses in the market after a pretty large opening IPO. Glad they’re suffering, as many Gold Medallions have lost much of their initial investment years ago for the taxi service when this ride share none sense came to the streets. I have no sympathy for Uber or their stock market losses. What goes around comes around.
@@HappyBirthdayMom08 you seem to be against open markets...
Show me on the doll where capitalism has touched you...
Texas chainsaw Murder jesus your assumption is not correct. If you acknowledge what regulations and laws Uber has soared over per their identifying as a tech company rather than a actual transportation service you will understand why to me, Uber is cheating the system. Clearly they create an illusion that they are only a high tech app when in fact the ‘app’ is a replacement to general dispatch contact and duties. I’m not the only one that thinks that is not fair. What a consumer gets picked up in looks like a car, drives like a car, sounds and feels like a car ... if they’re operating on the same road as the pure competition than they should follow and should be compliant to all road and service transportation regulation.
Enjoy the day
"You have to buy a new car every 2-3 years" What fucking crack where they smoking?
Some people lease. Majority probably buy so that's wrong
+Visceral3D Shes correct. If you drive full time 40 hours per week thats about 80k miles per year. You cannot lease a car and put 80k in miles per year on it...
+Thomas Costello Just to test your theory , go into a dealership and ask them for a quote on a 50000 mile per year lease and get back to us
Ok
Ok well IDK how leasing works then. I'll have to ask my dad about it because he always leases his cars
And you are not considering the labor time behind the wheel, driving or waiting nobody pay for.
I was a Lyft, UBer, and Side Car(RIP) driver in LA for almost two years. I joined them just after Lyft launched in the market and the rates were more than double what they are now. Like Task Rabbit, iCracked, and countless other app based gig economy jobs, the newer a company is to a market, the more lucrative the compensation for the work force. But after a while, rates will fall and you will start to figure out that you're totally getting screwed.
I agree with the video's assertion that Uber and Lyft are paying well under minimum wage. The depreciation factor can be misleading. If you buy a brand new car to ride share drive (WHICH YOU SHOULD NEVER EVER EVER DO) then the depreciation numbers you reported are fairly accurate. The best thing to do is drive a decent used car. Mine was 6 years old but I cleaned it up. I also did a lot of my own maintenance. Changed oil, brakes, etc. That saved me some money. That cut down the depreciation a little bit. Still though, the rates fell and fell and quickbooks was showing me not turning a profit some nights. The over/under on ride share driving, at least as it is now in the LA area, is a fools errand.
LA has a lot of desperate actors and if you take a Lyft or an Uber there, chances are you'll be helping some creative person make their rent. I used to have a tip jar in my car. Specifically for Uber since Lyft allowed tips (Though they used to confuse the riders into skipping it).
+Jim Fath The friend that helped us make this video was in a similar situation to what you described. He drove when the rate was worthwhile, but when it dropped so low, had to give up. But he was one of the smart ones! So many people don't take the shortcuts you describe, don't account for their income, and then get themselves into trouble. Thanks for the comment! - Jayde
+ScIQ
Why did you deduct the sales tax from the drivers pay? Isn't the tax charged to the consumer. The driver must hold the funds until tax time but it's not deducted from the business's income.
I heard that when this Uber Lyft started to get drivers they gave generous compensation. However a price war took over between the two, and it's the drivers who get cut not the services. Also you will never get a surge price at the Airport. An agreement between the services and the Airports says no surge prices.
Thats true but only because those guys are fucking greedy when they dont need to be. and they accepted money from the wrong type of investors that turned around and demanded to much cuts in order to satisfy their stupid ass margins. getting stupid greedy ass investors is what really fucks up the business. these type of apps should make good money and it should grow organically instead of rushed. The technology and idea is good, the execution is greedy and fucking evil. i dont even use uber, the CEO is fucking dick so are some of the investors. greedy fucking dickheads. With what they are doing they are fucking up the quality of the service by treating the drivers like shit. the drivers ARE their business and you treat them like shit is the dumbest fucking thing to do. they are so worried about making 1000000000% profit. Money fucking dilutes stop worrying about the quick fucking buck. they should build quality, because quality is wealth. Apple computers is not perfect but if you look at it loosely, they did focus on offering a high standard in quality right out the box, it took a while but people started to give them loyalty and now they are starting to shit on other PC manufacturers. they worried about quality first because its a domino effect with the human mind. if you give the people quality they will give you loyalty, it will take a while about when they do, you will then start to see reoccurring customers year in and year out. sorry for the long essay. but im so freaking pissed off i just bursted out in a rant.
@@andyshay1385 yeah she is actually calculating everything in a way to get as close to zero as possible so she can justify this video. Drivers also make tips on almost every call and sometimes the tips are relatively good. Why were tips not included in this estimation as well?
The only scam Uber does is that they say they only keep 20% from your trips while when you calculate it becomes something like 40%.
Uber keeps up to even 60% especially from short rides! See fare details bellow:
You Receive
Base Fare
$0.72
Distance (2.21 mi × $0.6240/mi)
$1.38
Time (6.10 min × $0.1300/min)
$0.79
Total
$2.89
Your earnings are always calculated the same way. On every trip you provide, you earn your base fare, plus time and/or distance rates for the length of the trip, plus applicable tolls, fees, surge/Boost, and promotions. To see your rates anytime, see Fares in the menu.
Rider Pays
Rider Price
$6.38
Rider Payment
$6.38
Includes any booking fees, pass-through fees, contributions, and reimbursable costs such as tolls paid by the rider.
Uber Receives
Service Fee
$1.29
Booking Fee
$2.20
Total
$3.49
Negativ
@@apfaffenzeller yes nowadays is close to 60%, i was checking the rates to airport, uber was charging rider 60$ while driver would get 29$ from that
In 2019 they take over 50% now. I’ve seen them take away 60%
I'm a taxi driver. We charge 4 dollars a mile which is kind of high for the country, but New York taxis often sit in traffic for extended periods of time. We drive in a town that has a 40 MPH speed limit. We get people where they're going on average between $7.00-$20.00. We also pass drug tests, extended background checks. No felonies or DUI's, and our cars are checked by the local police department. Our vehicles are marked with identification numbers, we pay taxes and have a bunch of local business owners instead of one giant cooperation. If you don't want to support huge corporations similar to Walmart, then support your local taxi company. Not Yellow cab, they have a Nationwide presence and they are real assholes. They are the reason taxi drivers get a bad name because Yellow cab knows they have a lockdown and people need them (they think) Support your local taxi company, you will find they are usually nicer people and appreciate their customers. I know my company does. I know an Uber driver in Nevada who smokes crystal meth. I understand that people are trying to work. Luckily our company takes care of the locals, give discounts to people going to and from work every day. Uber is screwing over a lot of local business owners by bypassing laws. The drivers are supposed to have a commercial licence that costs over $10,000. As taxi drivers we aren't allowed to pick up and drop off in a state we haven't applied for. Uber bypasses a ton of regulation that is there for the safety of the public. I'm not a fan , and Uber drivers don;t last more than a year. Their turn-over rate for new drivers is absurd. Unfortunately there is a sucker born every minute and there are plenty of people to take advantage of.
TazeMeBro McCleskey UBER does background checks also
lilmoonbaby6 I watched an undercover documentary where a DUI and convicted burglar got an Uber job in minutes.
In Russia there is no Uber but non-written contract between people. You need a taxi - you just wave and soon some private car stops and you've got your taxi. You ride it, you pay, all done. No Uber, no Lyft, no pay cut, no nothing. Fair and square :-)
Uber sounds like it's good to supplement your income, it's not meant to be a career. if they raise the rates in order to pay drivers more, why would anyone use Uber rather than a taxi?
This is exactly right, Uber as a full time job isn't going to get you PAID when you add in the things she says, gas, car depreciation, taxes BUT if you are that Guy who needed $400 dollars for rent that one or a few times. Uber is a lifesaver and is a great ADDITION. She did not add in Bonuses or Surge Pricing so her numbers are a bit off.
Totally this, but sadly there are dumbasses/desperate people who think that Uber could be a career and they start driving full time which is a terrible financial idea.
Call me old fashioned but here in Boston i still use conventional taxis
Definitely old fashioned. This day and age, people want fast and convenient. Pull out your phone, touch a few buttons, a car arrives within minutes and drops you off. No money changing hands. It's what people want these days.
did you just use atrocity to describe uber prices? Are you fucking kidding me?
She's right I've been driving for Uber for 5 months now in the San Francisco Bay Area and racking up 2,000 miles per week. That's 8,000 miles per month and at this rate I will rack up 96.000 miles by years end. In 3 years my 2017 Toyota Prius will have 300,000 miles and be worthless since the life expectancy of a car averages about 150,000 miles according to "Consumer Reports" and 250,000 miles if your car is really well maintained. I paid $25,000 for my Prius and that's a hefty expense considering I only average about $18 per hour (driving weekdays). With minimum wage in San Francisco going to $15 per hour I'm making well below minimum wage after expenses. Time to wake up and get another job before my car breaks down.
Her math is 24 cents for the car but your statement brings it down to 16.6 cents and since you driven 300,000 miles, your true cost was only 8.3 sents. She has a very bad maths
Serves you right for buying a Prius
Come on man a Prius? I know it has good fuel economy but you could've at least gotten a Hyundai Ioniq.
It's probably only possible to make money by buying seven year old cars and running them into the ground...but even $18/hour isn't worth it. I thought about driving for uber until I realized they wouldn't let me use my 15 year old junker, so now I just do ride shares if it's convenient.
I've given 900 Uber rides and I've been self employed for 35 years. I understand finances and Uber is a financial scam. They take advantage of people who can't find a better job. I'm disabled and Uber is one of the few things that I can do productively so for while more, I'll drive. Uber and Lyft are taking advantage of the economy that has few jobs and people need money. I'm totally disgusted with Uber support. Uber rates are about half the cab company's. As soon as I can I'll quit. Unfortunately I like driving for Uber and Lyft but both of them rip off the drivers.
Alan Stroup uber charges you nothing for the app, nothing to start, *you don't have to spend a dime on advertising to get the customers they send you any time you want*, they insure you and your customers while you're driving them, and for that you get 75% of the fare. While the $25 per hour I averaged over the weekend isn't making anyone rich, please explain how this is a scam.
I get less than 75% of the fare
You shouldn't anymore. For the last 3 weeks, they haven't deducted the pickup fee from the total fare before factoring the 75%. I'm getting 75% of the gross fare now.
I drove for rich celebrities like Miles Teller and his supermodel wife,Laura Prepon etc. I did extra work to haul firewood, waited 15 minutes for them to finish partying, sped and took alleyways to get them to dinner on time,etc. Made less than 4 bucks,no tip! Ashton Kutcher is on the record saying you're not supposed to tip your Uber drivers.
That's why as an independent contractor (Uber Driver) you can write off Gas, Depreciation, the Bottles of water, gum, lunch, etc.
That's why I didn't include income tax at all. So, "write them off" what exactly?
Carl Shahverd You do realize you have to make a profit to take a writeoff
as a business expense, as well as your gas, and other expenses.
We still make profit after taking the standard mileage deduction. It might not be a lot, and I still qualify for freaking food stamps and Medicaid, but there is a profit. And be careful trying to take a write off for lunches.
@SciQ As a tax write off.
This problem will change into a different problem very soon, because as soon as it's possible, Uber will replace drivers with machine-driven cars anyways.
Buckle up, folks! It's going to get interesting in the next few years!
Somehow I don't think Uber will take on the cost of driving unless their driverless cars get a special rate... you know pay themselves more then the actual drivers
You mean like JohnnyCab?
Brian Villegas right but the entire business model of uber is built on suckering people into depreciating their cars ubers benefit. without the driver who was going to be suckered?
Why is that even a problem?
***** dehr took err jeerrrbbs!!
I went through all the paperwork and background check to drive for uber...But after doing some research and mathematics(I'm a current business major) myself, and decided I'm better off working as a labor making $13/hr at odd hours in the manufacturing sector.
+Sonny Zheng --Thats what I be doing. Even get picked up to work jobs "off the books". This has mostly been Moving jobs, Roofing, House Building and mild yard & garden.
+Sonny Zheng --Thats what I be doing. Even get picked up to work jobs "off the books". This has mostly been Moving jobs, Roofing, House Building and mild yard & garden.
+DJDeezy ThaTruth Num sayin?
+Sonny Zheng yea if you can do manual labor then its definitely a quicker source of income. uber is more lax and part time than that. it depends on what you want and what car you have
+Jon R well then work as a laborer and not an Uber driver. Dilemma solved!!!
Uber charged me $50 to go a mile and a half. I asked the driver what he made for the trip. He said he usually makes $5!!!!!! Because it was a high-volume time, he got $10 from my first $36 transaction. NEVER AGAIN! Uber should be ashamed.
Just quit. Went back to purse snatching and trying to make Nigerian romance scammers really fall in love with me and cut me in for some of their green.
You don't have to single a nation out as scammers. There are scammers everywhere, even here in America.
I also drove for Uber for about 3 months, and she isn't lying.. The pay was just about what she says!
but how is it a scam lol? it's not like the Uber is not taking the person to the drop off point last time i heard they did...also if Uber is a scam then what is a TAXI not a scam they got the over priced pick up crazy wait times etc.
just because it's cheap and convenient for the customer, doesn't make it any less of a scam.
I'm coming from the driver's perspective, not the rider. Uber riders can get over on the drivers until they climax! lol
It's not cheap for the customer, though.
Maybe the customers should demand to pay only what the driver is getting paid?
So they rake their drivers over the coals for a few years, stash a few billion to spend on some self-driving Volvos, and then fire all those poor saps that carried them to the top. Brilliant.
Max Thrust that is the plan
Max Thrust I love your mind it reflect good stuff. after 2 years of stupidity I'm tired without realise why until I start reading you guys. billions.
They get around a lot of rules traditional transportation is required to follow by claiming to not be an employer. UBER takes 30% of your action for doing nothing except running an app. Then you factor in expenses and guess what... I see a lot of drivers on food stamps.
Yeah right. I wanna be far far away when the computers start driving on snow...
Technically most taxi drivers are subcontractors, I know I was when I drove and made a hell of a lot more money driving taxi and was allowed to accept tips.
@@toysoldier46552 I guess what we are as drivers depends alot on where we drive. I mean, its kinda impossible to compare Scandinavia and California, both the local regulations and the markets is pretty different. But one thing is the same on a global basis: Uber doesnt really "help" cabbies, the just screw up our market and jobs just by using modern slave labour.
@@PattayaWanksta Yeah I'm from Indiana so the states. I was against Uber and other such services when they first came about, and I stand by what I said in the past. Taxi cab drivers must go through physical examinations and thorough background investigations. I do not believe Uber does that considering I've seen horror stories of women getting raped by drivers.
Uber does not EMPLOY the drivers. They are self-employed just like people who sell stuff on Ebay or Facebook. Uber gives 70% of the take to the drivers. The rest goes to running the company and make profits for the shareholders. Where do you see A LOT of drivers on food stamps? If they are on food stamps they are not making enough money if they only drive a few hours a week. Keep in mind also that every city, State and country is totally different. If the governments stick their nose in the business definitely the drivers will make less like in France.
Its true, been driving for uber for just a month , its like suffering on another level, can't even pay my rent I had to quite , uber is scam
You should probably learn how to spell too
YOU ARE AN IDIOT. I started driving over a month ago - only on weekends - I'm averaging $28.00 - $30.00 an hour. Trips are NON-STOP from the moment I leave my house. Fuck, two days in a row I've been sitting in the car in my driveway ready to go and ride requests come through. They keep me busy, RIDE AFTER RIDE, NON-STOP...
Sholay, you are failing miserably at whatever it is you are doing BECAUSE Uber sets you up to fail! Stop! Stop driving for Uber. Go drive for Lyft. It's WAY better pay and you don't get the weekly scandals and protests like at Uber. I would be happy to share my referral link with you so you can get a $500.00 bonus when you sign up. Let me know. Be happy to help.
Gerry McGraw hahahahhahahahahaha Exactly
@@DaSurfr Same here, non stop bro, the second I drop someone off I get a ping within 5 minutes max...these people complaining are the ones who depend on the shit to make money. They are already fucking up in life.
Scam if you are a driver. If you are a rider it's pretty good
Yeah. You don't get beaten in the back of the head by drunks
Not a scam. We spoke to a driver who said he drove for yellow cab for 16 years and he makes a ton more money than he did on Uber. He said he had to pay fees to the company every week even if he didn't make that much. With Uber he doesn't have to pay unless he gets rides.
LOL I was thinking the same thing. IT'S A SCAM, IT'S A SCAM, IT'S SCAM! Oh but it's totally okay that I support this scam by being a frequent Uber/Lyft rider. Well she is from the Young Turks, so that explains this BS video.
To save money?
*****
I guess its kinda like shopping at walmart...
I drove for Uber; it was a giant waste of time and effort. I put 18K miles on my brand new car in 5 months and had shit-nothings to show for it. Both Uber and Lyft are dilling the drivers right up the a-holeage area.
Try 30K in less than 6. And it's cursed. Battery, wipers, brakes and rotors, ALL FOUR TIRES, and replaced front windshield. Twice. (from rocks) I wish I was kidding. Trading it in once it's paid off is going to suck. All those miles...
Joe Smith yup. Shit company. Riders are cheap assholes.
and noone ever asked them to buy a new car. idea is to use your car anyway. some drivers have regular non fancy cars.
I was an Uber driver. You were able to write everything off. Gas, mileage, car washes, phone, etc. I took home $900 (45 hours) a week after gas and rental fees. Never had to worry able maintenance. Just switch cars and go. Worked well in Chicago which was very busy. Could get nonstop requests. Easily 20 a day. Promotions were nice too. Uber Eats was another story. They don't pay at the same rate and the promotions suck. Lyft was garbage. Never had business. Might be better now but Uber dominated when I was driving. Uber was a nice stepping stone to get my business started. Not to mention all the money I made off referrals. It was awesome while I was a partner.
I'm starting a new serviced called GOOBER, I'll take you to the wrong place - every time! But I'll be driving a DeLorean, you'll be too happy going on a cruise with me to even care!
Made me Laugh Out Loud Man!!!!!
Can we snort cocaine and time travel in true Delorean style?
You have the Mr. Fusion option?
I drive for uber and 100% true you don't make alot of money 💰 but I still doing it because I'm a lazy guy .
fadi azzam a honest guy
Well what did you expect its not a hard job and everyone and their grandma has a car but don't care to drive. Yeah if your work is less that person at a fast food joint expect less.
BUBBLEGUM GUN I don't have a car. Get to know America better.
I also drive for Uber and I can tell you that this video is 100% false. I make good money, and this woman isn’t discussing the bonuses we get, the time paid, the tips, the fact that car expenses are tax deductible...
Uber eats and Doordash is my Bestie right now. Get paid more.
All I did was just factor in the fact that Lyft and Uber is always advertising that they need drivers. If it was so good then they wouldn't need to do that.
Daniel Treadwell agreed when I work I make $100 a day but it's my side job for extra cash
I love pro scamming arguements. Much ethics such compassion.
Uber LA is reduced to .60 per mile. May 8th 2019 LAX Strike
I quit in October
Who cares about a dumb strike, people just need to stop driving already
"Ubah" is an arrogant company and always has some loophole whether they're dealing with the customer, driver, municipality, or shareholder.
Share holder. Dude name me one stock you are invested in. All you complainers is spouting dumb shit you heard on tv. I bet I invest more a week than you do while driving part time with Uber
Thank you for making this video. It's entirely obvious that a company such as Uber does not having the interests of anyone but themselves in mind, but it's fantastic to have this clearly explained. Please everyone boycott Uber and other such apps that are obviously trying the same tactics. You might think, "It's not my problem" but it is EVERYONE'S problem when corporations get this much power.
I completely agree. Likewise, it's EVERYONE'S problem when governments get this same kind of dangerous power. Ergo, taxpayers are morally responsible for war crimes in the same way Uber passengers are responsible for supporting an exploitative model.
Isn't philosophy fun?
Sure. And now we know it's a BAD business decision!! LOL
Haha, you never research about the taxi industry before dont you? Just a hint, they are even more corrupt. At least now they have some real competition. As a customer, I dont give a fuck, anything that is cheaper and more pleasant is a win for me. Let the best one win.
Driving for Uber sucks.
I drive in the San Francisco, Bay Area. It used to be good.
But not anymore: too many drivers, lower fares, surge prices doesn't exist anymore. You are right lady; after I do the math I came out negative. And that is without even mentioning how expensive is to live in San Francisco
I agree. are prices still that low even after the class action lawsuit in California? Here on the east coast the prices are getting so low to the point of an all out strike from drivers.
The prices for Uber rides in and around Toronto in Canada are low, although many drivers to which I've spoken claim that the money they make from UberX is the pits.
i wish we can do the same over here in LA
😭 😭 😭 😭 I’ve been driving uber for the past 2.5 years and not even covered my expenses after i left thanks god i am well now
There's a good way to do math. This is not it.
so she is wrong?
+dabberzz nonsense if you factor in the federal tax deduction the government allows of 57,5 cents that easily covers any and all costs I accrue driving for uber .I make a living many would like to have
+dabberzz She is completely wrong. Looks like she did like 10 minutes of research and took whatever information she could to make uber seem bad. This person knows almost nothing about taxes lol. The uber drivers are considered contractors and even though the cost of driving is "54 cents" come April they are able to write off every single mile they drove while working for Uber. So the statement about them making almost nothing is 100% false.
+ThisIsPureyoo thanks. I have no knowledge about it, and really don't care since I won't be in the career. but thanks for you comment
+ThisIsPureyoo Even if you can claim that cost off your taxes, that money should still be going toward your vehicular costs, that's why it's tax exempt, because you are expected to spend that much money on your vehicle for work, instead of for self.
Seems like the only way to make money driving for Uber is to drive a completely depreciated car, and replace that car with another completely depreciated car. I.e., drive the least expensive car one can find and deduct the mileage.
Or just buy a used car in good condition with low miles. My depreciation is 7.5 cents a mile.
Sorry, I was being cheeky, but yes that's indeed what I meant and have always done. I can't imagine my old car costing me what the IRS says I'm allowed to deduct. Still, seems the Uber margins are thin for the drivers, but I sure would like to try it, just to learn more about people.
Its okay, it's my fault. I'm just running around looking for people to argue with xD. It is crazy that people really think it costs (on average) 54 cents to drive for Uber.
Well, the IRS sets this rate for the average of all vehicles. Some are going to be more, some less. But the reality is, many in the business world get paid to drive to work sites at that rate.
TuxedoMartini "Well, the IRS sets this rate for the average of all vehicles." No, they really don't set an average for "all" vehicles. They take an average cost of new vehicles that are driven about 40 miles a day and sold at 75k miles. It also doesn't account for that a large portion of that is a sunk cost for people who already have a personal car that want to use it for uber.
I did one trip for uber. It took me 40 minutes and I got paid $3.00. I quit
Ian Viereck
Uber in Houston is horrible! The company doesn't care about the drivers. Their loyalty is with the riders, period. I think Uber drivers should protest for better pay and go on a strike for a day or two nationwide. The riders ride almost for free! I took 2 people from near Bellaire to George Bush airport in MY CAR, in all the crazy traffic. After Uber deducted their commission, I was paid $20.23! $20 from Bellaire to. George Bush?? That was my third day of driving, and I'd used up a quarter of my gas tank ($10.00) to make that one trip. So minus the gas, I was left with $10 from that trip. Considering the wear and tear on the car and the 25% IRS taxes I have to pay, It was disgusted! I felt horribly sad for being abused that way, and I never went on another trip. Working as Uber driver is nothing but modern day slavery. They should increase the fares and pay the drivers more. Houston SUCKS for Uber driving!!!!
They are paying 0.90$/mile
3.00$ / 0.90$/mile = 3.33 miles
You drove 3.33 miles.
3.33 miles in 40 min
3.33 miles / (40/60)h = 5 miles/h
Your speed was 5 miles/h
So basicly those people who picked up were probally better of stealing a bike
a) its faster
b) its cheaper
Uber makes money by robbing money out of your account
Agree! They did that to me. Scammers!
Sad thing is that the add for this video was an uber ad lol
Hoodmexican4life same here!! wtf!!
Hoodmexican4life lol
Matias Barrios I'm saying lol
Well yeah it says Uber in the title lol. Ads are lined up to video content
missed it cause i have adblock
So, if they're such a rip-off, why are taxi companies pissed off about losing business and some cities are even banning drivers from working there?
Because they are deceitfully recruited
We said it for a thousand time: SCAM FOR DRIVERS, GOOD FOR RIDERS.
rhoadnaroahs Taxi companies are pissed off because they abide by the regulations which require commercial insurance , meters, medallions and background checks which UBER does not .
aidan conneely
Well, when all the Uber drivers realize it's a rip-off and quit, the taxi drivers will have their monopoly back. :)
rhoadnaroahs When will that be ? Uber is paying out incentives to lure in new suckers so in the meantime are Taxis supposed to keep paying their overhead until UBER collapses .? Why should Taxis pay the Cities to operate when those same Cities allow UBER to operate outside the regualtions . A level playing field has to be created. Keep in mind UBER still makes no profit so the drivers could quit or the investors could bale
I know a few people that drove for Uber for a while but stopped because there's just not enough money in it. Don't take my word for it, try it for yourself.
where in afganistan
What you are leaving out is that every expense associated with your vehicle is deductible. Gas, car washes, repairs, alignment, oil changes, and mileage are significant tax deductions.
true but if you take the standard mileage deduction you cant deduct repairs, maintenance gas etc, you have to have to choose one method or the other and you cant switch methods from year to year
Not anymore. Trump changed the tax code and I now owe $1600. Last year I paid almost nothing.
I was thinking the same thing but surprisingly those deductions are actually greater than your income for the entire year
@@TyJohnson Just cause you paid less in taxes this year does not mean people do not owe taxes. Trump and the GOP removed and reduced alot of deductions that regular people used. Myself included. Thanks to Trump I couldn't push 4k of my income into a lower bracket. Great job dipshit.
@@KnightofAntiquity Get a real CPA and stopping using TurboTax
I drive for uber on my commute to work and home. I pick up 3-5 rides a day, on a route that I have to do in order to go to my regular job. This works for me.
curtis maxwell that's cool lol
For you it works perfectly (Uber is good for some extra income on the side) but there are to many fools who think that Uber can replace a full time job and quite honostly for what I see in how it pays in non peak hours I don't see that happening.
Correct, not a full time job for me , but not a scam
No such thing is a pre-set "route" on Uber, one person could take you way of course
You can set two destinations a day
Three years since and the business models for Uber and Lyft haven't changed much (Lyft slightly more than Uber however). They want to saturate the market with replaceable drivers to keep cost and pay low and aren't committed to creating an actual company environment for drivers as they claim--more of a charade. Kind of what America is becoming in general thanks to all the schemers. Outside the city is where the need is the greatest for rideshare, yet these places are impossible for drivers to rely on based on the rate per ride model (they would need a guaranteed weekly rate with a reasonable ride limit based on population density and probably a limited driver quota). As SciQ demonstrates, more pay per mile and per hour would also help significantly. What would be great is an additional merit system based on the types of rides provided; if these companies want to stress rideshare for people with disabilities, or hard-to-reach places, or emergency room discharges, or drunk people needing a ride late at night on weekends, the drivers should be rewarded for complying instead of fed a bunch of propaganda and threatened with legal contracts. Feeling good when someone tells you "I wouldn't have made it home if not for you" does not pay the bills and maintenance costs of being the brunt of liability for these companies. The drivers take everything upon themselves yet are also the faces of these companies. Who runs the shitshow? Who are the devs and programmers of the apps? Nobody knows or cares. If organized, the drivers could give Uber and Lyft a really bad day. Perhaps that's why they make them so replaceable. These models will not change unless the customers and independent contractor drivers force them to change.
You are absolutely right. Ride share drivers are in millions, but not organized. These companies know this fact very well and exploit the poor drivers! How to change this situation?? No one knows the answer. Pretty sad!!!
tin foil hat
Jon DGAF why are you wearing it then?
@@matthewmoselle9789 I even wear one when I pick up passengers.
Jon DGAF I completely believe you. Next you’ll tell me you’re a Trump supporter. 😥
The solution is to drivers to record all their drives and post funny moments on UA-cam to make an extra
Hahahhahah best comment
I used to drive Uber for a day in LA and made about $10 per hour. This was before taking into account fuel and depreciation costs. $19 an hour is totally unrealistic.
Temp User I use to live in LA and I heard gas went up dramatically
You probably weren’t even making $10 an hour when you factor in the diminished value of your car.
I was an Uber driver and she is totally right. Slave wages for Uber drivers in LA.
J. J. Gardona but hey you work when you wanna work.
I drove for Uber and LYFT and kept very good records. I tract all costs and payments. This video is very accurate, however, as bad as the numbers are, it's even worse in rural areas. Uber doesn't pay for you drive to the customer or the ride back to your home area. In urban areas this isn't so bad because most rides are close and destinations are generally in the city. In rural enviorment this the numbers are criminal. You have to learn not to drive more than 5 miles to a pickup but if you don't take all the 20+ mile calls that pop up in rural areas they hold it against your rating. you also arnt told where they are going. I have had trips where I drove for 3 hours and didn't even break even. In the 3 months I worked for Uber and lift I averaged less than $3 per hour and that was after I figured out the hard and expensive way not to take certain trips. There were days that I was on the clock all day and actually lost money. There should be a guaranteed minimum wage (by law) but that would mean admitting that they are scamming drivers. Most of which, like me are driving because we are already low income and desperate. a They should be ashamed of themselves!
there is no required acceptance rate. your profile 'score' and cancellation rates are what matter. (ignore far away rides, head closer to bigger cities)
MrBgklug as I stated, even after I learned to ignore far away rides, I still averaged around $3 an hour after total real world expenses were deducted. I only deducted what wear and tear and gas was actually appropriate for my vehicle (and taxes) not the fed recommendations which are much higher.
Bottom line, I made less than half of minimum wage and I don't think that should be a secret.
yadaroni i was just replying to your statement "they hold it agaunst your rating", and trying to be helpful in that regards.
yadaroni Have faith brother.
yadaroni life is like the wild west big business thinks you should be ashamed for working for them or for buying into their rules and products that we dont necessarily need for our souls to grow healthy with nature. we should be ashamed but maybe we shouldnt be because big business has always been like this before you were existent on earth business and government dominates so its not our fault. or i dont believe its people's fault, its natures fault. thats what big business thinks its natures or gods fault for not stopping the industry. so they take no responsibility in their actions. thats the game being played. how can you blame uber for doing whats always been done on earth? why stress and worry about things that are not real problems . money is an illusion.
Uber/lyft isn't meant to be a way of making a living. It is meant to be a side income. Have a job that pays hourly or even 2 and just do 5-6 small rides a day and make 20-30 dollars a day. Giving you a income of 600-750 a month. Enough to pay a car note insurance and your gas for your monthly car use (excluding and including lyft/Uber). I work Uber on the side like this and it helps me pay my bills just fine. People who ONLY do Uber are wearing their car out and of course you won't make money. Plus it is a luck based income.
ONCE again.... DRIVE an Older car.... sell, and replace every year.... you CAN buy an older nice low mile car.. then sell it for the same you got it for... sometimes more.... IF you know what you're doing
Dennis Mattson
Correct, it's a workable business if you tightly control your costs and don't operate out of debt. Not all Uber markets will support a full time income, those that do are worth $25-35k a year, you have to know your market.
Uber gets to run a cab company with none of the normal expenses associated! In other words, "Thanks, Suckers!"
Exactly they just play outside of the rules by claiming there a tech company.
I used to work in a restaurant and they refused to use Uber Eats because in order to put your restaurant on their app, they automatically wanted about 33% of all of your profits. That's a little ridiculous in my opinion
they shouldn't be taking any profits imo...i mean they already charge the customer a min $5 for the delivery and the app doesn't allow you to deliver to far off from the customer's location.
Young Goddess of what profit ?
The sales profit from witch the customers order throught Uber eats or just the sales in general ?
OK so wouldn't this mean eventually no one will drive for Uber and the company will die out?
Rademenes Polański
what would that be?
Mr. Gabe Uber is going to go driverless in the future your uber will show up with no one in it.
American Battle Championships
and until then? That won't be until awhile from now. Uber is still going strong
Mr. Gabe no because if look at the like to dislike ratio and the comments, there are a lot of Über fanboys/girls
Francisco
I know that. Uber obviously has a strong business model that has plenty of people employed and happy. I was trying to figure out how they made such a statement.
All these numbers are added up in an absolute worst case scenario. Driving for Uber is not something you can live off of, but it is a great quick money maker. I drive in Orlando, and I make more money than most other college students do working in a conventional job. I clear about $80 a day driving 4 hours, possibly $60 after fuel. Subtracting the additional taxes, I'm still well over standard pay of retail or food industry. Whatever vehicle maintenance I have would exist whether or not I drive for Uber, so you can't really include that in expenses. Where do you get this nonsensical $2 an hour? An oil change is 30 bucks every 4 months. Tires are $300 every 4 years. Of course you're going to spend more if you suck up to the mechanic. I also drive an older vehicle that has already devalued and did not cost me $20,000. You also never mentioned anything about surge pricing. You can make 3x's standard fare at specific areas and times. That's just free money getting tossed in your pocket. I bought a phone charger for $3. Nobody takes water or gum from a person they don't know, so I don't even carry that stuff. Uber does not hold taxes for you because filing as an independent contractor allows you to deduct driving expenses, which saves you money. You can't do that if you're filed as an employee. I'm sorry but your math sucks and you really have no clue about anything.
This video is very one sided. Like you said, she only talks about worst case scenarios, but doesn't talk about bonuses, surge, boost, possible tips, etc.. And she totally misleads people when she brings up taxes without talking about deductions.
Yeah, what about all those tax deductions I've heard about?
DrE38 You can deduct all fuel and repair costs.....Anything that relates to your car or the job. Fuel being your main expense, It deducts a lot.
Have you been filling out Schedule SE? The money you're supposedly saving may come from not paying your self-employment tax, but deducting business expenses. I'm also not mentioning the hassle of not having a corporation deal with your taxes and having to keep records in case you get audited, but the video doesn't address that when the time saved would have a significant value.
" but doesn't talk about bonuses, surge, boost, possible tips"
Those things are optional and depend on the customers only. It's the same scenario for waiters: Is it ok for them to be underpaid because customers might tip them? Should they live hoping to get tipped to make ends meet?
This is the Real Facts of Uber and Lyft.
I watch this video before i drove for both Companies and found out that she ain't lying,
If you don't believe her try for yourself
lmao i dont believe her i have bein doin it for 5 years. too many ppl cryin on these comments ... it isnt real facts, u put urself working for a company and work over 60 hrs a week to make shit money as a truck driver i do 40 hours a week to make just as much and i dont have no one to answer to coz i work for myself. when you hustle for it , it becomes just like any other job. you should try puttin 40 hrs a week into and let me know how that goes. good luck!