# Case Study: Portland invasion and UberX pay claims



## KeJorn (Oct 3, 2014)

Interesting article about how Uber invaded Portland, Oregon:
http://www.bloomberg.com/news/features/2015-06-23/this-is-how-uber-takes-over-a-city

Within the article, they mention a document Uber put together stating that on average, UberX drivers made around $16/hr:
https://s3.amazonaws.com/uber-static/comms/PDF/Uber_Driver-Partners_Hall_Kreuger_2015.pdf

I am certain this does not factor in ANY other operational costs of the driver.

If Uber wants to compare apples to apples when talking about driver income as something to compare to other workers of other industries, even those of Taxi drivers, they should at least provide accurate data. Not something skewed like this document.


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## PHXTE (Jun 23, 2015)

Sure, I make about $16/hr too. However, it's more like $12/hr when you take costs into account.


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## KeJorn (Oct 3, 2014)

PHXTE said:


> Sure, I make about $16/hr too. However, it's more like $12/hr when you take costs into account.


Have you actually priced everything out?

When they state $16/hr, I don't think they even include their fees, which equate to about 25% (20% + SRFs) of the fares they count as our "income", let alone our operating costs (gas, cleaning, maintenance, tolls, communications, etc).
I see about 30% spent on basic operational costs (not including depreciation of my car or taxes/insurance).

That means that 50% or more is cut off the top, before we begin to talk apples to apples.
So if they claim $16/hr, that is essentially *$8 or less.*

Sometimes, I see *gross fares *above $20/hr, which means $10 or less after their fees and basic operational costs are deducted (again, before depreciation, taxes, and insurance).
UberX drivers are earning less than minimum wage, unless they find ways to game the system.


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## KeJorn (Oct 3, 2014)

An excerpt from the document Uber put together:
_
"As can be seen in Table 6, Uber's driver-partners generally receive higher earnings per hour than their general-population driver counterparts. In 16 of the 18 markets available, the median earnings per hour of Uber's driver-partners exceeded the average hourly wage of taxi drivers and chauffeurs. *Of course, Uber's driver-partners are not reimbursed for driving expenses, such as gasoline, depreciation, or insurance, while employed drivers covered by the OES data may not have to cover those costs*. These costs vary for each driver-partner, and drivers may be able to partially offset their costs by deducting work-related expenses from their income for tax purposes, including depreciation and/or leasing fees, gasoline, maintenance, insurance, mobile device and data fees, and license and registration fees depending on their particular tax situation. *A detailed quantification of driver-partner costs and net after-tax earnings is a topic of future research. *Nonetheless, the figures suggest that unless their after-tax costs are more than $6 per hour, the net hourly earnings of Uber's driver-partners typically exceed the average hourly wage of employed taxi drivers and chauffeurs."_

Costs may be offset by deductions at tax time? 
If they want to reference our hourly earnings, do not start with the tax deductions.
Yes, they clearly need to research and provide a_ *detailed quantification of driver-partner costs and net after-tax earnings.*_
Please get on that study, Uber; you clearly have no idea. 
Proof: "_UNLESS the costs are more than $6/hr..."
_


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## jones98 (Jun 26, 2015)

KeJorn said:


> I am certain this does not factor in ANY other operational costs of the driver.


 It does not appear to.

Weise mentions this in the article you posted: "The inundation of data made it hard to spot holes. ... and ... analysis didn't ask about how much drivers spend on expenses such as gas and insurance, _making it an incomplete earnings picture_." (italics mine).


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## chi1cabby (May 28, 2014)

KeJorn said:


> Within the article, they mention a document Uber put together stating that on average, UberX drivers made around $16/hr:
> https://s3.amazonaws.com/uber-static/comms/PDF/Uber_Driver-Partners_Hall_Kreuger_2015.pdf


That's extensively discussed here:
*(Edited) Uber Study: UberX Drivers Grossed $16.50/Hr (B4 Expenses) During Oct. In 20 Biggest Markets*



KeJorn said:


> When they state $16/hr, I don't think they even include their fees, which equate to about 25% (20% + SRFs) of the fares they count as our "income"













KeJorn said:


> Yes, they clearly need to research and provide a_ *detailed quantification of driver-partner costs and net after-tax earnings.*_
> Please get on that study, Uber; you clearly have no idea.
> Proof: "_UNLESS the costs are more than $6/hr..."_


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## XUBERX (May 26, 2015)

I think there are too many variables to put an exact number, according to uber I make $27 p/h but after factoring all expenses my hourly earnings take a dive to around $15 p/h, honda crv but someone with a smaller car might be doing better.


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## KeJorn (Oct 3, 2014)

XUBERX said:


> I think there are too many variables to put an exact number, according to uber I make $27 p/h but after factoring all expenses my hourly earnings take a dive to around $15 p/h, honda crv but someone with a smaller car might be doing better.


Honda CRV would be UberXL, correct? Which is a different pay scale. depending what percentage of UberX rides you give versus UberXL.
Obviously the more efficient your vehicle is and the tighter you can keep your other operational costs, the better one will do driving UberX.
UberX has a very tight profit margin that when compared to other options, may simply not be worth it, other than for a part-time / short-term basis.


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## PHXTE (Jun 23, 2015)

KeJorn said:


> Honda CRV would be UberXL, correct? Which is a different pay scale. depending what percentage of UberX rides you give versus UberXL.
> Obviously the more efficient your vehicle is and the tighter you can keep your other operational costs, the better one will do driving UberX.
> UberX has a very tight profit margin that when compared to other options, may simply not be worth it, other than for a part-time / short-term basis.


No, a Honda CRV is a mini-SUV. UberXL requires you to have a third row for passengers, which the CRV doesn't have.


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## XUBERX (May 26, 2015)

KeJorn said:


> Honda CRV would be UberXL, correct? Which is a different pay scale. depending what percentage of UberX rides you give versus UberXL.
> Obviously the more efficient your vehicle is and the tighter you can keep your other operational costs, the better one will do driving UberX.
> UberX has a very tight profit margin that when compared to other options, may simply not be worth it, other than for a part-time / short-term basis.


 Uberx for the crv.


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