"Why Uber Is A Scam - Math Explains"
ScIQ (5 minutes)
..."Uber is pretty cheap if you’re a passenger. So, how can Uber be so cheap, and yet the drivers make money?"
"Uber takes 20% of the total fare from the driver for older drivers. Newer drivers get 25% taken."
"Then you have to deduct tax:
Uber doesn’t withold taxes for you. The drivers are responsible for keeping this money aside to pay the tax department.
"Now 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 (though these will mostly exist even if you don't drive).
So with 54c depreciation, repairs, and fuel accounted for, we’re down to almost nothing 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."
"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.
"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."