# Earning = $1 per each mile GOOD or BAD?



## Joe Dow (Jan 15, 2018)

By the end of day, I try to earn $1 per each mile.

i.e, $100 = 100 mile (including dead miles i.e, from home to home back) in a 8 hour shift

I drive in a small city not some big metro type

I own Hyundai Certified Pre Owned 2016 Elantra with 31,000 miles on it with 25-27 MPG average according to trip meter doing city driving.

Progressive ride share insurance = $20 extra

Cell bill = $40

Keeping in view the expenses like gas, maintenance, depreciation, irs taxes etc etc, do you think I am making any money? if yes how much? or am in for a big surprise. 

I need your opinion especially from experienced drivers. Thanks!


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## Mista T (Aug 16, 2017)

I cannot speak for any other driver, or any other market.

Personally I make $1.30-$1.50 per mile, including tips and dead miles, but not including gas or any other expenses/depreciation. I average 25 mpg when working.


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## merryon2nd (Aug 31, 2016)

You're a TOUCH under where you SHOULD be feeling comfortable, and below profitability in some people's shoes. But the only way to REALLY know is if you go back, crunch your costs against your profits. If costs at the end of the week are bottoming out close to the profit line, you need to start making a bit more.
Keep track of your DAILY costs and your WEEKLY costs in this fashion. By the end of your first full week of analyzing like this, you'll have a much clearer picture.
But I personally like to be between $1.45-$1.75 a mile driven. It feels safer for me. It's a bit of a grind, but very doable.


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## Oscar Levant (Aug 15, 2014)

Joe Dow said:


> By the end of day, I try to earn $1 per each mile.
> 
> i.e, $100 = 100 mile (including dead miles i.e, from home to home back) in a 8 hour shift
> 
> ...


depends on the terrain. In Hub inner city areas, easy. Way out in the burbs, not so easy. When I work north county san diego, paid miles % goes down, but when I work downtown, it goes up significantly.

Don't average your miles that way, try to see what you paid mile percentage is, that's how taxi companies ( used to ) do it 
( before the age of leasing took over ).


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## MercDuke (Nov 18, 2017)

I think you should do better, I live 25 miles from where I Uber, and if I am only at a DOLLAR a MILE I am driving, I worry, and I am Deadheading like 50 miles a Day. Try not to drive around empty. Learn where the busy spots are in each part of the Territory you drive, and get there, and sit there until you get a trip. Turn off the car. If you don't get a Trip, remember what day of the week and what time that spot is DEAD. You may want to write it down. Personally, I check and see when events are going on, when Airplanes are landing, when people are headed to the Airport, and also when people are going to Concerts or Ball Games, etc... and that's when I drive. If nothing is going on, it may NOT BE PROFITABLE to DRIVE. Let some NEWBs go Drive those shifts. There are a ton of new Drivers all the time. Most don't get it, and quit after a month or two.


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## Jazzbaseball (Nov 22, 2014)

If you know your per mile rate, what do you do with the information? 

I see it talked about everywhere, but then what?


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## MercDuke (Nov 18, 2017)

Decide whether it's worth it to work for Uber or do you go find another job? How do you work for a company and not know what the gross pay is? Many drivers are working for free!


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## Jazzbaseball (Nov 22, 2014)

MercDuke said:


> Decide whether it's worth it to work for Uber or do you go find another job? How do you work for a company and not know what the gross pay is? Many drivers are working for free!


I generally lean on what my Cash Flow is versus what my earnings are per mile.

I don't look at depreciation, but instead the replacement cost of the vehicle.


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## kc ub'ing! (May 27, 2016)

My calculations are much easier. Are my monthly bills covered? Yes, cool! No, better drive a bit more. 

I’m not living high on the hog but I am not growing debt.


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## Merc7186 (Jul 8, 2017)

Depreciation should vary amongst drivers. I had a guy on my local thread keep screaming at me about depreciation (Im actually a Fixed Asset Analyst) and it means zero to me because I drive a 12 year old minivan.

I figure $5/ hour for expenses, new car fund...if I cant make $25/hr before expenses, then not worth me driving.


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## Jazzbaseball (Nov 22, 2014)

Merc7186 said:


> Depreciation should vary amongst drivers. I had a guy on my local thread keep screaming at me about depreciation (Im actually a Fixed Asset Analyst) and it means zero to me because I drive a 12 year old minivan.
> 
> I figure $5/ hour for expenses, new car fund...if I cant make $25/hr before expenses, then not worth me driving.


This is how I was taught...replacement cost of the car.

Come tax time I claim the mileage reimbursement, but for my own personal use, I look at replacement cost.

I think most don't understand the difference between looking at your books based on cash flow and what you report for taxes.


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## mbd (Aug 27, 2018)

Merc7186 said:


> Depreciation should vary amongst drivers. I had a guy on my local thread keep screaming at me about depreciation (Im actually a Fixed Asset Analyst) and it means zero to me because I drive a 12 year old minivan.
> 
> I figure $5/ hour for expenses, new car fund...if I cant make $25/hr before expenses, then not worth me driving.


If you have a old car and it gets good mpg, don't worry about 1 dollar per mile. Key is to run that car to the ground and make max profit out of that car. If you can make 35 dollars on a 50 mile run, in 1 hr,and make 10 dollars on a 10 mile trip in 1 hr,which trip made you the most money?? Cost of gasoline is the only cost which is 3-4 dollars more.
You can write off 50 miles times .54 = 25 plus dollars
End of the day, total profit after all the expenses.

New cars, then it is a totally different story . You have to watch your miles per dollar


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## dctcmn (Sep 21, 2017)

Jazzbaseball said:


> If you know your per mile rate, what do you do with the information?
> 
> I see it talked about everywhere, but then what?


For me, I have a few important metrics (gross revenue/hr, gross revenue/mile, gross revenue/ride, costs) that give me an overall idea of how I'm doing. If one of those metrics changes for better or worse, I can look at the individual numbers that make up the key metrics (miles driven, fuel costs, tip revenue, bonus revenue) to see what has changed to cause that key metric to change.

Is my car getting worse fuel efficiency? If so, it may be the early sign that something is wrong. Is my behavior changing? Am I driving in different areas or at different times? Am I driving more empty miles than usual? Is chasing Quests or Challenges really making me more money?

My key metrics look like this on a spreadsheet--










My whole monster spread sheet has over 50 columns on it with cumulative info and a bunch of minutiae on it, but most of it is just formulas. I think I enter about 7 pieces of info at the end of every week, then the spreadsheet does the rest.

I can label outliers-- for example my WE 10/28 fuel per day cost is $10 lower than most other weeks. That's because I cashed in all of my fuel rewards and got a free tank of gas. I can put a note in there so I remember what happened.

This is how I experiment and evaluate new strategies and take the emotion out of my decision making process. I can also use the previous year's data to predict when the market has turned for the better or worse, which helps me make longer term decisions.


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## mbd (Aug 27, 2018)

kc ub'ing! said:


> My calculations are much easier. Are my monthly bills covered? Yes, cool! No, better drive a bit more.
> 
> I'm not living high on the hog but I am not growing debt.


Exactly... if you need to make extra 20 dollars , just make it. Might force you to drive few extra miles , but you made your 20 dollars. You don't want to be driving 2000 miles for the 20 extra, but you can use common sense. If it costs 2 dollar extra to make 20... then do it.


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## Las Vegas Dude (Sep 3, 2018)

In Vegas at .60 per mile and .15 per minute it’s hard to average a dollar a mile on X unless you stick to the strip and do minimum fares but then your dollar per hour tanks because of all the traffic and pedestrians. Plus it doesn’t help that I live out northwest and usually have to drive back empty since no one really goes that way.


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## Danny3xd (Nov 7, 2016)

kc ub'ing! said:


> My calculations are much easier. Are my monthly bills covered? Yes, cool! No, better drive a bit more.
> 
> I'm not living high on the hog but I am not growing debt.


I agree. I have a rule I constantly break. Don't do the math. But even with doing that to myself all to often. I try to remember. My bottom line is not the bottom line. If your doing well enough and are happy. Screw it. If you really want the information, there are a ton of online "How much does it cost to drive my car" calculators. And there are a ton of ways to do the math.

When all is good. I don't care. I live well and indoors. Have all the toys I could ever want.

In my previous career, I saw upclose poor and hungry. It ain't pretty.

And I doubt I make a buck a mile.


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## kc ub'ing! (May 27, 2016)

Danny3xd said:


> I doubt I make a buck a mile.


If agreement was money given, you just made a buck on my smile.


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## oldfart (Dec 22, 2017)

Merc7186 said:


> Depreciation should vary amongst drivers. I had a guy on my local thread keep screaming at me about depreciation (Im actually a Fixed Asset Analyst) and it means zero to me because I drive a 12 year old minivan.
> 
> I figure $5/ hour for expenses, new car fund...if I cant make $25/hr before expenses, then not worth me driving.


It doesn't matter what you call it or what column on your spreadsheet gets the entry 
Call it "depreciation" or call it a "new car fund", 
Either way; Its an expense


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## theMezz (Sep 29, 2018)

I figure about the same $1 per mile on my spare time.
It does however stop me from spending money, too.


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## jgiun1 (Oct 16, 2017)

I remember buying my car in April 2017....had 32,000 miles and perfect condition.....fast forward 17 months, just turned 88k.....still nice but some scratches, espically on the interior trim.


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## LakerLeBron (Oct 10, 2018)

Joe Dow said:


> By the end of day, I try to earn $1 per each mile.
> 
> i.e, $100 = 100 mile (including dead miles i.e, from home to home back) in a 8 hour shift
> 
> ...


Something is better than nothing
Don't be homeless and hopeless


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## MadTownUberD (Mar 11, 2017)

Here's an illustration of why it's a good idea to track cost per mile. Monday Nov. 5 I had just gotten back from Tallahassee and I drove to Madison to get my Uber fix. I theoretically lost about $5 in the venture, despite a relatively low theoretical cost per mile, due to all dead miles.










Weds and Thurs this week were the only days worth driving, since they were $1/mile or greater. The bottom line is: don't go out of your way to drive Rideshare unless you are able to make a looooong "shift" out of it or there's a lot of surge (like 3x).


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## LakerLeBron (Oct 10, 2018)

MadTownUberD said:


> Here's an illustration of why it's a good idea to track cost per mile. Monday Nov. 5 I had just gotten back from Tallahassee and I drove to Madison to get my Uber fix. I theoretically lost about $5 in the venture, despite a relatively low theoretical cost per mile, due to all dead miles.
> 
> View attachment 272891
> 
> ...


I try to drive 15 plus hours per day
100 plus hours per week ......


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## bsliv (Mar 1, 2016)

dctcmn said:


> evaluate new strategies and take the emotion out of my decision making process. I can also use the previous year's data to predict when the market has turned for the better or worse, which helps me make longer term decisions.


Data leads to knowledge. Knowledge is power to increase income.

Need an extra $20 to eat? Go drive. Make the $20. Eat. But if you have the typical Uber car and drove 62.5 miles, your gross stays at $20 but your net goes to $0. Your stomach or bank account is temporarily satisfied. But the $20 will go back towards depreciation (replacement cost), maintenance, repairs, gas, insurance, tickets, licensing, car washes, etc. (Average Uber car costs $0.32 per mile to operate.) You'll be hungry in the future.

If you gross $20 in 20 miles and have an average Uber car, you'll net $13.60, enough to eat with the $6.40 going to costs.

Data = power to increase income.


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## Christinebitg (Jun 29, 2018)

At 60c per mile payout here, I don't think there's any way to get close to grossing $1 per mile.

Christine


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## MadTownUberD (Mar 11, 2017)

Christinebitg said:


> At 60c per mile payout here, I don't think there's any way to get close to grossing $1 per mile.
> 
> Christine


You better have <20-25% dead miles!


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## Christinebitg (Jun 29, 2018)

MadTownUberD said:


> You better have <20-25% dead miles!


I've been making an effort to minimize my dead miles. Especially considering the reduced insurance coverage associated with them.

I also landed a side consulting gig that'll mostly keep me busy through the end of the year. 

Christine


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## Danny3xd (Nov 7, 2016)

Christinebitg said:


> I've been making an effort to minimize my dead miles. Especially considering the reduced insurance coverage associated with them.
> 
> I also landed a side consulting gig that'll mostly keep me busy through the end of the year.
> 
> Christine


Congrats Christine!


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## LakerLeBron (Oct 10, 2018)

bsliv said:


> Data leads to knowledge. Knowledge is power to increase income.
> 
> Need an extra $20 to eat? Go drive. Make the $20. Eat. But if you have the typical Uber car and drove 62.5 miles, your gross stays at $20 but your net goes to $0. Your stomach or bank account is temporarily satisfied. But the $20 will go back towards depreciation (replacement cost), maintenance, repairs, gas, insurance, tickets, licensing, car washes, etc. (Average Uber car costs $0.32 per mile to operate.) You'll be hungry in the future.
> 
> ...


$20 is $20
Nobody gives me $20
Even if after all expenses
I earn $5 or $10
Is still better
Than homeless/hopeless


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## tohunt4me (Nov 23, 2015)

I travel 100 miles round trip just to drive uber.
Now only 12 hours.
While taxi drivers do a 12 hour shift
Then BEGIN UBER !

So if i average $1.00 a mile that day.
It is a Great Day for me !

And Remember
" NO NEED TO TIP "!

" LOWER RATES MEAN MORE MONEY "!


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## UberDriverGIG (Nov 21, 2018)

Joe Dow said:


> By the end of day, I try to earn $1 per each mile.
> 
> i.e, $100 = 100 mile (including dead miles i.e, from home to home back) in a 8 hour shift
> 
> ...


You need to minus the per mile depreciation rate for where you live plus the gas and diving your phone and auto insurance by 30 days to see how much you are actually making. The phone and auto insurance can be a little tricky, I would divide it by the number of trips that day after dividing it by the month. Most drivers make negative income once you figure out the calculations.


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## Danny3xd (Nov 7, 2016)

I would not figure in any thing you would have been paying for anyway. Then only the percentage of cost per miles that is the same percentage you drive for work. Use the same calculation that the IRS uses;

https://www.hurdlr.com/blog/16-tax-deductions-uber-drivers-can-use-immediately

Not only is the profit benefiting you. Your "Common operating expenses" are helping you pay for things you would be paying for with out being able to write them off.


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## MadTownUberD (Mar 11, 2017)

Danny3xd said:


> I would not figure in any thing you would have been paying for anyway. Then only the percentage of cost per miles that is the same percentage you drive for work. Use the same calculation that the IRS uses;
> 
> https://www.hurdlr.com/blog/16-tax-deductions-uber-drivers-can-use-immediately
> 
> Not only is the profit benefiting you. Your "Common operating expenses" are helping you pay for things you would be paying for with out being able to write them off.


Let's be careful to distinguish between actual expenses and those claimed for tax reporting purposes. The former being used to make "management" decisions and the latter being used to save $$ yet stay out of jail -- just like any business does.

Since I don't drive RS full time, it would be very difficult to divvy up my actual expenses between business and personal...unless I could use a mileage based percentage... So I simply use the $0.54/mile deduction or whatever it is. Plus, I'm pretty sure the URS deduction is higher than my actual expenses.


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## Danny3xd (Nov 7, 2016)

Lets do that, then. Ya use the percentages as that article suggests. Let's say you drove 27% ride share. Let's then write that off on IRS allowed deductions. Same costs are now 27% less. Car wash, cell phone, cleaning supplies. Any legal write off.

It's a good article. Quick easy read and clears that up. Leaving money on the table when legal, ethical write offs are left unused is a waste of money.

If a hassle, save every receipt and use an accountant. I've not had a problem or scrutiny in 20 fiscal years. And there is a lot, lot more then the .54 cents.



MadTownUberD said:


> Let's be careful to distinguish between actual expenses and those claimed for tax reporting purposes. The former being used to make "management" decisions and the latter being used to save $$ yet stay out of jail -- just like any business does.
> 
> Since I don't drive RS full time, it would be very difficult to divvy up my actual expenses between business and personal...unless I could use a mileage based percentage... So I simply use the $0.54/mile deduction or whatever it is. Plus, I'm pretty sure the URS deduction is higher than my actual expenses.


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## MadTownUberD (Mar 11, 2017)

Danny3xd said:


> Lets do that, then. Ya use the percentages as that article suggests. Let's say you drove 27% ride share. Let's then write that off on IRS allowed deductions. Same costs are now 27% less. Car wash, cell phone, cleaning supplies. Any legal write off.
> 
> It's a good article. Quick easy read and clears that up. Leaving money on the table when legal, ethical write offs are left unused is a waste of money.
> 
> If a hassle, save every receipt and use an accountant. I've not had a problem or scrutiny in 20 fiscal years. And there is a lot, lot more then the .54 cents.


Thanks Danny. Maybe I'll try that in 2019 just as an experiment to see which is more. But I suspect that too few of my miles are rideshare for it to be worth my time to save all those receipts and enter them into a spreadsheet... Even if I'm leaving a little money on the table. But I think I'll try it!


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## Danny3xd (Nov 7, 2016)

Not suggesting you switch from mileage to itemizing. That in the case of PT rideshare driving, well I'm just not suggesting that at all. 

You are allowed to write off a lot of expenses in addition and while using standard mileage.

It's a lot of money over a year. 

If you don't use an accountant, tax software will ask you about other expenses and do the math for you.

For as hard as it is to earn doing ride share, I would look into it. The IRS is amazingly supportive of anything small business and want you to survive and do well.

Most are fixed costs. So ya know off the top of your head. Car wash, I generally do it at least twice a month or more. So I use 24. Cell phone X 12, etc.

These deductions count towards your total tax liability. So if your a heart surgeon or NASA director and making lots of money, this would help you keep more.

An accountant for not a lot of money will pay for themselves and ya won't be pulling your hair out. 

I personally avoid chain ones. Just my thinking and many folks use them successfully.


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## Dan2miletripguy (Nov 3, 2018)

The one thing to remember and that keeps me encouraged is the enormous tax break we get with the $0.54 a mile deduction. We get to keep more of our earnings than if we were at a regular job but of course the cost that we do pay is in the loss of value to our cars.


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