# Prospective Uber Driver with many questions



## Uber_Prospective (Jul 29, 2014)

Hi Uber drivers,

I am very interested in becoming an uber driver and if you guys don’t mind I have a few questions for you. 

1. How does the pay work? I know uber takes 20%, but is the fare a standard price or who decides it?

2. What are the common “peak” hours?

3. How many hours do you guys typically work, and what is the average take home pay (before deducting gas, insurance, car note, etc..)

4. Any students out there? Does this work well for you?

5. I am looking to buy a compact car on a loan for this. Do customers generally prefer cheap or prefer big? I am assuming their fares depend on the vehicle size?

Any other tips?

I am brand new to this so any help is appreciated.

Thanks You!


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## London UberExec Driver (Jul 8, 2014)

I'm from London, so my answers are probably slightly different. 

1. They set the fare depending what car you've got and which level of Uber you are able to join. The rates are on their website, if you look under the city you plan to drive in. 

2. Common peak hours vary from city, though I imagine its going to be Fri and Sat evenings, maybe morning rush hours, Sunday afternoons (when many drivers take it off), public holidays, events etc. 

3. Work as many or as little as you like. I have my own private work, and use Uber when I'm quiet. 

4. Probably works well with students, as working for Uber is flexible. Downtime can be used wisely to study.

5. Depends what city you're in, how many hours you plan to work. If you say what city you're from, maybe someone from the same city will reply and advise.


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## Uber_Prospective (Jul 29, 2014)

London UberExec Driver Thank you so much for replying!


I am from Chicago and plan to be driving only here and near north suburbs.


-I really wish to not work more than 30 hours per week, and I hope to clear at least $600 per week. is this unrealistic?


-The only costs I can think of are gas, insurance, car note, and tolls. Are there any others?



Thanks


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## Britchiq (Jul 28, 2014)

I think your best bet will to get some info from other Chicago drivers.... I'm in the DC area and for about 14 hours of driving, I made approx $356 after Uber took their 20% cut and deducted the $1 fee per ride. I do most of my driving in downtown Washington DC on the weekends. I could definitely clear $600+ in a week here if I drove 30 hours.

Good luck!!


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## troubleinrivercity (Jul 27, 2014)

Don't buy a car for UberX you wouldn't like owning otherwise. You may get sick of driving Uber, the money might be insufficient, your rating might fall too low or there might be a complaint against you. The company has no investment in you, so limit your investment in it, at least for a while.

If you will be dependent on UberX to make your car payments, do not buy a car. You have exactly zero job security doing this.

How much money you can expect to "make" or "clear" depends on the harshness of your accounting. Your car will lose a lot of value doing this job, and it will need repairs at a greatly accelerated rate. A one-person car-for-hire business operates on margins that are basically quite slim. There are plenty of passengers in Chicago, and plenty of drivers. Sometimes there's more of one, sometimes more of the other.


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## troubleinrivercity (Jul 27, 2014)

I think there are enough passengers/demand in Chicago, but enough to make sense of a ten-hour shift? I don't know. Not IMO at 25% reduced fares. The cab advantage of an unsolicited street hail is pretty huge, our volume is so limited by waiting for requests, finding passengers, waiting for them to find us, cancelled requests. My advice is probably to limit the hours and mileage you dump into Ubering, since most of them won't be that fruitful, and will just barely cover your costs. That it's your "personal car" just means that it has a dual-use, Ubering is what will suck it dry of most of its value, before cost of repairs are even considered. I try to slow this by almost never driving around if I don't have a pickup request.

I think UberX is not going to be a viable full-time job for 80-90% of drivers. Remember you're on the hook for a lot of tax, and the company has about as much disdain for its 1099's as a company could have. Which means they are free to add drivers and slash fares until everyone's pretty much driving people around for free.


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## Uber_Prospective (Jul 29, 2014)

how do you guys calculate the wear and tear, and vehicle depreciation that goes in per mile when budgeting the finances?
is there a certain dollar amount you use? Like lets say i assume the maximum life of a car is 150,000 miles and the car costs about $20,000 i think thats about $00.13 per mile. is this a viable figure?


as for now the total list of expenses are:
gas
insurance
car note
tolls
income tax
this vehicle value depreciating factor...

anything else?


Thanks!


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## London UberExec Driver (Jul 8, 2014)

Maintenance/servicing, repairs, tyres, car wash, sat Nav (if you haven't already got one), extra mobile phone costs.


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## Oc_DriverX (Apr 29, 2014)

Instead of trying to figure gas, maintenance and depreciation, you could use the IRS figure of $0.56/mile. If you have an efficient car that you got used for a good price, then your figure might come in lower. Its at least a place to start.


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## Farlance (Jul 29, 2014)

1) Weekly total for fares - Tolls - Safe Rides fee = Statement amount. 
Statement amount * .80 + Tolls + Safe Ridea fee reimbursement = Total payment.

2) Rush hour in the morning and evening, lunchtime, and anytime between 12AM-5AM if you're brave and willing to deal with drunkies.

3) I don't actually drive. D:

4) I've seen a LOT of students doing Uber. Just keep in mind we need to verify 3 years of driving history if you're under 21.

5) Don't buy a car on your own! Uber has vehicle financing programs that are discounted for partners. Send a ticket and we can send you some information about it.


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## u_no_me (Jun 27, 2014)

Farlance said:


> 5) Don't buy a car on your own! Uber has vehicle financing programs that are discounted for partners. Send a ticket and we can send you some information about it.


The uber financing program only works for those with the poorest credit (15% APR)


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## SCdave (Jun 27, 2014)

1) If you haven't already. Get an Uber Account (w/ credits) and take a few Uber Rides. Ask Drivers in the area you want to Drive in how they like it.
2) Don't buy a new car. Depreciation on the vehicle is a cost of driving.
3) Don't go with the Uber Special Financing Program. This is a can't find a good used car quickie program.
4) Ideally you purchase the most cost effective low mileage Used Car you can find (from friends, relatives, family). Also what is best for the area you will be driving in.
5) Direct expenses besides cost/payments on car: Gas & Maintenance (accelerated for high miles driven) are big ones.
And now, $10 per week Uber Device fee for use of their iphone is a moderate one to add to the list.
6) Think about if/when I stop driving for Uber, how will I pay for my Car if you are financing it? Have a backup plan.
7) Whatever budget you put together, Uber can change it by lowering Rider Fares (lower income) or adding an unexpected expenses like the $10 per week Device Fee (increase expenses).
8) Use TurboTax, another program, or talk to family or friends who run a small business and file taxes to get an understanding of how you will be filing; tax liabilities, benefits, and how to keep good records of your expenses for deductions.

* I haven't driven on Toll Roads but believe they are backed out by being included in your Driver Weekly Statement. A good question to ask local Drivers (Credit to MP775 clarification: "Only Tolls when Clients/Fares are in Car are credited or when required to exit Airport after Drop Off are credited to Driver Account by Uber. Otherwise, Driver Pays Tolls themselves").

Being a Student, if you are thinking about having your car insurance on your parent's policy, you should be very open with your parents about the potential risks. Personal Insurance on your car which you use for Uber is still a Grey area. Uber has been adding coverage related to insurance but this is still a very Grey Area. Rideshare / Per to Per transportation is still new for Insurance Companies.

Please don't look at Uber/Rideshare as a great way to buy a new car, pay for it, have extra money, and oh boy, I get a new car. It is a good opportunity but absolutely not if you are thinking of purchasing a new car.

Do your homework, ask lots of questions, talk to Uber/Lyft drivers, talk to family and friends. Find a good Used Car. DON'T buy a new car and DON'T buy from Uber Special Promotion. Nothing against Uber but this program isn't in best interest of Drivers. This is a put the risk on the driver, high interest, get more drivers on the road for Uber Program.

Other references for Uber Special Promotions/Etc:

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https://www.reddit.com/r/uberdrivers/comments/236tst


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https://www.reddit.com/r/uberdrivers/comments/1xb2zc


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## mp775 (Jun 26, 2014)

SCdave said:


> * I haven't driven on Toll Roads but believe they are backed out by being included in your Driver Weekly Statement. A good question to ask local Drivers.


Tolls with a rider in the car are automatically added to the rider's fare and are not part of the fare that Uber takes 20% of; it all goes back to you. Tolls without a rider in the car are not reimbursed except in special cases (e.g., you have to pay a toll to leave the airport).


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## mp775 (Jun 26, 2014)

Uber_Prospective said:


> I am looking to buy a compact car on a loan for this. Do customers generally prefer cheap or prefer big? I am assuming their fares depend on the vehicle size?


I get a lot of compliments for having a larger vehicle, even from people traveling alone. I also drive very part time and am not as sensitive to operating costs. The fare depends on what level of Uber the rider requested (X, XL, SUV, Black, etc.), not the vehicle itself; if you're an UberX driver you're getting an UberX rate, regardless of your vehicle.


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## Crownan (Jul 28, 2014)

Really, $10 data fee? I mean, and let me apologize in advance if I'm wrong, but wtf you are a horrible driver if a $10 data fee irks you. What do you pull down a week? I probably pay Uber what you make a week if you think a $10 fee is significant.


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## mp775 (Jun 26, 2014)

SCdave said:


> And now, $10 per week Uber Device fee for use of their iphone is a moderate one to add to the list.


I see the word "moderate," not "significant." The question was about expenses, and it is one.

For part time drivers, it *is* significant, but that's irrelevant to this thread.


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## Crownan (Jul 28, 2014)

Yes, I'm sorry. I was kind of more raging at the 20% cut reflected in my current Raiser statement than anything else. It was my bad for posting while kind of upset in this thread.


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## Oc_DriverX (Apr 29, 2014)

mp775 said:


> Tolls with a rider in the car are automatically added to the rider's fare and are not part of the fare that Uber takes 20% of; it all goes back to you. Tolls without a rider in the car are not reimbursed except in special cases (e.g., you have to pay a toll to leave the airport).


As I have mentioned elsewhere, double check your statements for the tolls. I have had to ask Uber to add missing tolls on several occasions. I even have had to ask Uber to remove tolls from fares where I did not take the toll road.


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## Dave (Apr 12, 2014)

u_no_me said:


> The uber financing program only works for those with the poorest credit (15% APR)


You can still get the discount without using the Uber financing. I did at SF Toyota. I also got a free extended warranty to 150,000 to boot that I wasn't expecting (this was on a new Camry Hybrid)


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## Older Chauffeur (Oct 16, 2014)

Would that be the 10 yr/150k mile CARB warranty required on the hybrid battery on cars sold in Ca?


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## Dave (Apr 12, 2014)

No, that's the standard factory warranty. The hybrid system warranty is separate


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## OldTownSean (Aug 14, 2014)

Are people actually encouraging him to do this? Don't buy a car for this. You'll regret it. Prices may well be lowered again leaving you holding the bag.


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## UberPissed (Aug 13, 2014)

DO NOT BUY A CAR TO DO THIS!
Unless:
1. You have other income
2. You are already considering a vehicle notwithstanding driving for uber

Keep in mind that the one thing that robs a vehicle from its value is mileage. If you buy a new car, you are essentailly giving away your equity in your vehicle to every asshole who gets in your car. In 2 years, your 20k vehicle will be worth 10k, and you will owe 17k on it. Now you are upside down by 7k, and your vehicle will rapidly be out of warranty.

Do what @Randy Shear does, have some older car that already has the deprecation sucked out of it, and cash in.


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## Friendly Jack (Nov 17, 2015)

Uber_Prospective said:


> Any other tips? I am brand new to this so any help is appreciated.


Uber_Prospective, you sound like a bright young person. Some of us are stuck driving Uber due to our own personal circumstance, but almost anyone currently driving will tell you that they will *jump* at the first alternative opportunity that might come their way. I admire that you are thinking this through somewhat before signing up with Uber and I therefore want to offer the best advice and most sincere advice I can offer to you: *Don't do it!* If you have any opportunity other than Uber, please pursue it. Otherwise, after a few short weeks and the novelty wearing off, you will end up disappointed, cynical and probably worse off financially than doing anything else you may have been able to do. That's my best advice, one friend to another.


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## onsmart (Jun 15, 2015)

The rideshare companies try to explain that they are an app company. They're purpose is to link riders with drivers. They don't intend for anyone to make a profit.

The true intent is that no one makes money. Rather, they want to match riders and drivers to share expense. The fly in the ointment is that drivers chase the surge and any profits are consumed by the profit killing depreciation and other expense.

The best way to take advantage or ride share is to get a job and join a car pool. No money changes hands and the government has not figured out a way to tax the savings. 

The algorithm supposes the rider is benefiting by splitting the true cost with the rider.

The surge rate is no more than Charlie Brown trying to kick that football again.

I would focus the use of my time on something more productive. Get a series 7 or an A plus certification. Get livery liscense if you want to make money driving. Invest in companies that are innovating driverless technologies. 

Success is more about how you choose to focus your time. Do you want to focus on minimum wage, or $100,000.00 a year?

In my humble opinion. Food for thought. I am not a professional financial consultant.


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## NuberUber (Dec 28, 2015)

Friendly Jack said:


> Uber_Prospective, you sound like a bright young person. Some of us are stuck driving Uber due to our own personal circumstance, but almost anyone currently driving will tell you that they will *jump* at the first alternative opportunity that might come their way. I admire that you are thinking this through somewhat before signing up with Uber and I therefore want to offer the best advice and most sincere advice I can offer to you: *Don't do it!* If you have any opportunity other than Uber, please pursue it. Otherwise, after a few short weeks and the novelty wearing off, you will end up disappointed, cynical and probably worse off financially than doing anything else you may have been able to do. That's my best advice, one friend to another.





onsmart said:


> The rideshare companies try to explain that they are an app company. They're purpose is to link riders with drivers. They don't intend for anyone to make a profit.
> 
> The true intent is that no one makes money. Rather, they want to match riders and drivers to share expense. The fly in the ointment is that drivers chase the surge and any profits are consumed by the profit killing depreciation and other expense.
> 
> ...


Sound advice, but the original post is from almost 2 years ago. I think he has likely made their decision by now!


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## onsmart (Jun 15, 2015)

Lol.


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## dnlbaboof (Nov 13, 2015)

never buy a new car for uber, whats the rate there per mile, its honestly not worth driving if its too low, or only drive surges


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## bobby747 (Dec 29, 2015)

i was stupid enough to buy a new car for me first uber 2nd as at over 50 . i dont want work on it i got tons of rides and plan on only fri- sat soon. will i get hit big on value..yessss...but its nice just making a payment...the best car imho over 6k uber rides is a cash 2008 civic /corolla / etc with about 80k on it well maitained. for say 6k cash or so and run it to make cash.... you wont lose more than a couple of grand....but after uber you will still have a nice car to drive.these cars last 200k


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