# 20% Commission Change.



## UberSCWill (Apr 19, 2014)

Posted this on a Facebook: 

How much of a pay cut does 15% increase in commission mean? About 28% pay cut. A long ride out to Palo Alto nets you under $10 an hour.

Here are the numbers as an San Francisco Driver. @ 3/base 1.50/mile .30/min

$1500 earn on 50 hours of work. Take home income after 5% commission $1425. Expense, about 750 mile driven @ 56.5 cent per mile (includes gas, and car related expense + depreciation) = $424. Profit = $1076 or $21.52 per hour.

New Commission rate of 80/20

$1500 earn on 50 hours of work. Take home income after 20% commission $1200. Expense, about 750 mile driven @ 56.5 cent per mile (includes gas, and car related expense + depreciation) = $424. Profit = $776 or $15.52 per hour

$15.52 / 21.52 = 0.72; OR 28% Decrease in earnings.

Even long distance trips are not worthwhile.

Trip to Palo Alto from San Francisco $66, Take home $52.80 after 20 percent commission. Round Trip distance 70 miles @ .565 cent per mile = $39.55 $52.80-39.55 = $13.25, Takes 80 min. Hourly pay $9.93


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## Jeeves (Apr 10, 2014)

It's interesting that you would think they had the low commission rates so that they could have low fares. Instead of raising the fares a bit back up and increasing commission they just increase commission. Good breakdown of costs comparisons.


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## myuber (Apr 18, 2014)

Plus you factor in taxes in with that.. In az. 15.2 state tax plus 25% fed tax.. so if you make $72k a year.. $28,994 in taxes. Gotta love the higher rate with being 1099


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## GuitarJunkie (Apr 10, 2014)

Can u really get $30 an hour in fares for 50 hours of driving for Uber? $1500weekly fares / 50hours=$30 an hour in fares.

750 miles @ $1.50 a mile and 100 trips of $3 base fair is almost $1500. Thats assuming you dont drive anywhere to pickup a rider though.

Seems to me it might be worse then you are describing!


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## UberSCWill (Apr 19, 2014)

I do a little over $30, but with a lot of selective driving hours. I do 7:45-12pm, 4:00pm-7:30pm. I also do Thrusday-Sat for more hours because it surge more. I must say, it wasn't that long ago I was doing $45 an hour, remember the good old days of $50 SFO airport runs, that I can complete within 45 min, and $90 San Francisco to Palo Alto runs.


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## smoothOP (Apr 10, 2014)

Commission change must feel like thievery. Are they giving you the $1 per ride? $30 in fares an hour is above average! Any chance you could screenshot us a weekly report?


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## alanab (Apr 11, 2014)

hehe - yea proof! anyways good breakdown of how the commission difference effects pay. how a 15% change ends up being a 28% decrease still is confusing me.


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## Jeeves (Apr 10, 2014)

UberSCWill said:


> Posted this on a Facebook:
> 
> How much of a pay cut does 15% increase in commission mean? About 28% pay cut. A long ride out to Palo Alto nets you under $10 an hour.
> 
> ...


$1425 - $424 = $1001 / 50 = $20.02

$15.52 is 77.5%=22.5% decrease in earnings

correct me if im wrong


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## Wyatt (Apr 17, 2014)

Jeeves said:


> $1425 - $424 = $1001 / 50 = $20.02
> 
> $15.52 is 77.5%=22.5% decrease in earnings
> 
> correct me if im wrong


 they are taking

The point is, Uber is taking too much. Who cares about the math details. You can't get away with making more money without charging more to the customer here in America. Free enterprise will crush you.


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## Jeeves (Apr 10, 2014)

Sorry to bore you with the math Wyatt. Some people might care though.


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## UberSCWill (Apr 19, 2014)

- Jeeve is correct my math is wrong. 

He is correct.


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## UberSCWill (Apr 19, 2014)

I also have no problem with them increasing the commission, just bring the rates to a workable level. They said the commission leave drop to 5% was to coincide with a decrease is fare prices. Well if your going to bring your commission back to 20% you got to finish the 2nd leg and bring the fares to the old level if we are to earn a living wage. Of course many would consider $16 an hour a living wage, but kind of hard to keep up with the $2600 single bedroom rent rate.


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## Jeeves (Apr 10, 2014)

I know living in bay area is rough but the median single bedroom rental can't be $2600 can it? Or is that a mortgage based quote?


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## Dave (Apr 12, 2014)

Jeeves said:


> I know living in bay area is rough but the median single bedroom rental can't be $2600 can it? Or is that a mortgage based quote?


In the city of SF yes, $2,600 for a 1 bedroom is a little on the high side, but definitely not uncommon.


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## Jeeves (Apr 10, 2014)

I looked on Zillow at rents in San Fran. If you aren't an engineer at Apple, you are screwed! I suppose Engineers at Uber don't do half bad too. Im sure Ive contributed to some overpriced accommodations....


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## UberCool (Apr 28, 2014)

I have been driving for BOTH UberX and Lyft since June 2013. I love how these two go back and forth with promos and specials to new drivers.

For the past month Lyft has not been taking their 20% commission and their surges (aka, PTT - prime time tips) have made it far more profitable for me to drive much more for Lyft over UberX.

UberX keeps trying to get me to convert more Lyft drivers over to them since I am a Mentor for Lyft. If anyone is interested in some sign up bonuses and commission free fares through spring, shoot me a message.

We are all independent contractors regardless of who we drive four, it works out very well for me to have a backup plan, switching from either app to ever has the surge going on or no commission.


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## SoCal_Uber (May 2, 2014)

Jeeves said:


> I know living in bay area is rough but the median single bedroom rental can't be $2600 can it? Or is that a mortgage based quote?


Yes we all can thank the tech boom for that.
They even nicknamed where I live, the Santa Monica/Venice area as "Silicon Beach" LOL.
Nothing funny about the jacked rent increase however....


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