# UBER new service fee schedule or what you really make.



## CowboyMC (Aug 26, 2014)

UBER's mileage rate (NJ) is now $1.65 per mile. So lets figure out what you make on each mile.
UBER gets 20% of that which is $0.33. That leaves $1.32. Now the government says it costs you $0.56 per mile to use your car (gas, wear and tear, maintenance, and repairs). Also remember, UBER is not paying for return mileage, so you have to double the paid mileage. So if I was going from New Brunswick, NJ to Newark airport. Say that trip is 40 miles. I am going back to my base, so I will have to do 40 miles back will no passenger. So put the car costs at $1.12 per revenue mile. So we take $1.32 a mile income and subtract $1.12. *You are netting $0.20 a mile.* That doesn't count tolls. Now all car services I know of charge the client tolls both ways. UBER doesn't. So the Newark airport trip NJ Turnpike tolls are about $1.90. I have to pay the $1.90 return trip. I also did not include mileage going from my base location to the pick-up location. This mileage is not paid for either. You may ask, why then do I work for UBER. I don't work for UBER year round. I have a good paying job that is seasonal. So I work UBER off-season. I also don't use my car much. I actually want to put mileage on my car. I used my last car so little, I had it for 15 years before buying a new car. So this is a way to get paid for putting mileage on my car, so I can get a new car in less than 15 years. I would NOT work for UBER to make a living, because you can't. At least not in central NJ. You may think you can because you see the money going into your checking account, but wait till you have to replace your car.
What do you think of my calculations? Have you sat down and calculated your net income? If so, why do you drive for UBER. Maybe after this you will have second thoughts.


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## LAuberX (Jun 3, 2014)

.65 / mile is too high, that would be $65,000 for 100,000 miles.

A car you should use for Uber should cost more like .35 per mile over 3 years / 120,000 miles.

Now try the math at .88 or .72 per mile after Uber's vig is taken out.

Ouch time, even with .35 per mile "cost"


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## Albert Stan (Aug 31, 2014)

LAuberX said:


> .65 / mile is too high, that would be $65,000 for 100,000 miles.
> 
> A car you should use for Uber should cost more like .35 per mile over 3 years / 120,000 miles.
> 
> ...


Agree. This cost estimation is too high. A prius that cost ~30K (including maintenance) can run 200K miles within 3 years. The deprecation cost per mile should be $0.15 / mile


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## LAuberX (Jun 3, 2014)

I am still a little high at .35 as a "cost" per mile. I am including gas / insurance / tires / maintenance in that number.

Depreciation alone more like .12 to .13 when I run the numbers.


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## where's the beef? (Sep 16, 2014)

CowboyMC said:


> UBER's mileage rate (NJ) is now $1.65 per mile. So lets figure out what you make on each mile.
> UBER gets 20% of that which is $0.33. That leaves $1.32. Now the government says it costs you $0.65 per mile to use your car (gas, wear and tear, maintenance, and repairs). Also remember, UBER is not paying for return mileage, so you have to double the paid mileage. So if I was going from New Brunswick, NJ to Newark airport. Say that trip is 40 miles. I am going back to my base, so I will have to do 40 miles back will no passenger. So put the car costs at $1.30 per revenue mile. So we take $1.32 a mile income and subtract $1.30. *You are netting $0.02 a mile.* That doesn't count tolls. Now all car services I know of charge the client tolls both ways. UBER doesn't. So the Newark airport trip NJ Turnpike tolls are about $1.90. I have to pay the $1.90 return trip. I also did not include mileage going from my base location to the pick-up location. This mileage is not paid for either. You may ask, why then do I work for UBER. I don't work for UBER year round. I have a good paying job that is seasonal. So I work UBER off-season. I also don't use my car much. I actually want to put mileage on my car. I used my last car so little, I had it for 15 years before buying a new car. So this is a way to get paid for putting mileage on my car, so I can get a new car in less than 15 years. I would NOT work for UBER to make a living, because you can't. At least not in central NJ. You may think you can because you see the money going into your checking account, but wait till you have to replace your car.
> What do you think of my calculations? Have you sat down and calculated your net income? If so, why do you drive for UBER. Maybe after this you will have second thoughts.


i am speechless...
please become an Uber executive and generously spread your logic and knowledge...
Travis needs, yes he desperately needs, your boundless wisdom...


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## CowboyMC (Aug 26, 2014)

LAuberX says:
"A car you should use for Uber should cost more like .35 per mile over 3 years / 120,000 miles."

How did you calculate that? Where did you get your numbers?
I know that different cars have different costs associated with them. Does anyone know where you can find the expected cost per mileage for each make and model?


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## Sean O'Gorman (Apr 17, 2014)

Remember too, if you worked a normal job, you're still incurring depreciation and vehicle expenses by commuting every day. Or, if you don't drive to work, you're probably paying for transportation anyway.

No one says "well my salary is 50k a year, but my commute is 20 miles each way, so I really only make $43,500/year."


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## CowboyMC (Aug 26, 2014)

The mileage you are talking about is NOT business mileage. Remember you are in a business. The business IS driving. I am only including depreciation and vehicle expenses related to the business. My personal mileage is NOT included. Driving back and forth to a job would be considered personal mileage. To try and explain it differently. Say you had one car, you use that for regular job and personal stuff. You go to work for Uber and buy a second car just for that. That car is a business expense. If you were a owner/operator of a truck, that truck would be a business expense.


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## Salthedriver (Jun 28, 2014)

Sean O'Gorman said:


> Remember too, if you worked a normal job, you're still incurring depreciation and vehicle expenses by commuting every day. Or, if you don't drive to work, you're probably paying for transportation anyway.
> 
> No one says "well my salary is 50k a year, but my commute is 20 miles each way, so I really only make $43,500/year."


What kind of logic is this


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## Oc_DriverX (Apr 29, 2014)

CowboyMC said:


> UBER's mileage rate (NJ) is now $1.65 per mile. So lets figure out what you make on each mile.
> UBER gets 20% of that which is $0.33. That leaves $1.32. Now the government says it costs you $0.65 per mile to use your car (gas, wear and tear, maintenance, and repairs) ...
> ....


The IRS deduction figure is $0.56 per mile. As others have stated, your actual costs can vary.


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## LAuberX (Jun 3, 2014)

CowboyMC said:


> LAuberX says:
> "A car you should use for Uber should cost more like .35 per mile over 3 years / 120,000 miles."
> 
> How did you calculate that? Where did you get your numbers?
> I know that different cars have different costs associated with them. Does anyone know where you can find the expected cost per mileage for each make and model?


I am a car guy, I know how to buy right, sell right and do most work myself. Your costs may vary.

You need to sit down and calculate it using your mpg, tires, insurance, service, your buy price and sell price (I used 3 years) to get your estimated cost per mile.

It ain't .65 or .56 or doing Uberx would lose money every mile driven.

Cabs in L.A. are salvage title hybrid Camry/Prius for a reason. Low cost is the only way to drive 40,000+ miles per year and even eek out minimum wage.


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## Sydney Uber (Apr 15, 2014)

Give this online calculator a try

http://commutesolutions.org/external/calc.html


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## Droosk (Sep 1, 2014)

lol @ this post. Just another clueless fool.

1) You get a deduction from the IRS of 56 cents a mile, NOT 65 cents.
2) This is NOT the "operating cost" of the vehicle.
3) At the rates Uber pays in that area, the math would be:

40 miles, $66
About 50 minutes, $10
$76 for the fare. Take out Ubers cut, and you are left with $60.80. Lets say the trip uses a liberal 4 gallons of gas, roundtrip (Probably more like 3, but we'll say 4). Current average gas price in NJ is $3.16/gallon, so that leaves you with $48.16.

4) Thanks to the IRS deduction, the earned income on that is only $3.36, but you MADE $48.16, and it took you less than 2 hours. If properly cared for, your vehicle can EASILY last you a few hundred thousand miles with only minor to moderate repairs.

If you were smart, you'd be setting aside ~$100/month to cover those anticipated repairs. You're making money, you just can't comprehend the basics of math and taxes.


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## ElectroFuzz (Jun 10, 2014)

Droosk said:


> lol @ this post. Just another clueless fool.
> 
> 1) You get a deduction from the IRS of 56 cents a mile, NOT 65 cents.
> 2) This is NOT the "operating cost" of the vehicle.
> ...


A little too optimistic.
The majority of cars will NOT make it to 200,000 miles.
It's a fact, check it out.

You need to factor in all the costs on the roundtrip not just gas.
For depreciation I have a very simple rule that seems to work very well for most cars. (not hybrids)
You need to put 1 dollar into your "new car fund savings" for every dollar you spend on gas.


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## Droosk (Sep 1, 2014)

No, the majority won't make it. Because the majority of drivers are idiots, and don't bother to give their vehicles even basic maintenence, much less drive correctly.

"New car fund"? Have fun with that.

As for your demand that I "check it out", I have, and since you haven't, I'll help you:

http://www.forbes.com/sites/jimgorzelany/2013/03/14/cars-that-can-last-for-250000-miles/
http://business.time.com/2012/03/20/what-you-only-have-100k-miles-on-your-car-thats-nothing/
http://www.consumerreports.org/cro/2012/05/make-your-car-last-200-000-miles/index.htm


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## Sean O'Gorman (Apr 17, 2014)

I made it to 189k on my 2001 Mazda Protege, which had 114k when I bought it in 2007. The only thing that stopped that car was rust. If I lived somewhere warmer, I'd probably still be driving it.


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## DriverJ (Sep 1, 2014)

I think I'm gonna get a horse-drawn buggy and go UberLiveStock. Maybe there's money there.


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## pengduck (Sep 26, 2014)

CowboyMC said:


> UBER's mileage rate (NJ) is now $1.65 per mile. So lets figure out what you make on each mile.
> UBER gets 20% of that which is $0.33. That leaves $1.32. Now the government says it costs you $0.65 per mile to use your car (gas, wear and tear, maintenance, and repairs). Also remember, UBER is not paying for return mileage, so you have to double the paid mileage. So if I was going from New Brunswick, NJ to Newark airport. Say that trip is 40 miles. I am going back to my base, so I will have to do 40 miles back will no passenger. So put the car costs at $1.30 per revenue mile. So we take $1.32 a mile income and subtract $1.30. *You are netting $0.02 a mile.* That doesn't count tolls. Now all car services I know of charge the client tolls both ways. UBER doesn't. So the Newark airport trip NJ Turnpike tolls are about $1.90. I have to pay the $1.90 return trip. I also did not include mileage going from my base location to the pick-up location. This mileage is not paid for either. You may ask, why then do I work for UBER. I don't work for UBER year round. I have a good paying job that is seasonal. So I work UBER off-season. I also don't use my car much. I actually want to put mileage on my car. I used my last car so little, I had it for 15 years before buying a new car. So this is a way to get paid for putting mileage on my car, so I can get a new car in less than 15 years. I would NOT work for UBER to make a living, because you can't. At least not in central NJ. You may think you can because you see the money going into your checking account, but wait till you have to replace your car.
> What do you think of my calculations? Have you sat down and calculated your net income? If so, why do you drive for UBER. Maybe after this you will have second thoughts.


The IRS allows .56 per mile. I think you got your numbers turned around.


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## CowboyMC (Aug 26, 2014)

CowboyMC said:


> UBER's mileage rate (NJ) is now $1.65 per mile. So lets figure out what you make on each mile.
> UBER gets 20% of that which is $0.33. That leaves $1.32. Now the government says it costs you $0.65 per mile to use your car (gas, wear and tear, maintenance, and repairs). Also remember, UBER is not paying for return mileage, so you have to double the paid mileage. So if I was going from New Brunswick, NJ to Newark airport. Say that trip is 40 miles. I am going back to my base, so I will have to do 40 miles back will no passenger. So put the car costs at $1.30 per revenue mile. So we take $1.32 a mile income and subtract $1.30. *You are netting $0.02 a mile.* That doesn't count tolls. Now all car services I know of charge the client tolls both ways. UBER doesn't. So the Newark airport trip NJ Turnpike tolls are about $1.90. I have to pay the $1.90 return trip. I also did not include mileage going from my base location to the pick-up location. This mileage is not paid for either. You may ask, why then do I work for UBER. I don't work for UBER year round. I have a good paying job that is seasonal. So I work UBER off-season. I also don't use my car much. I actually want to put mileage on my car. I used my last car so little, I had it for 15 years before buying a new car. So this is a way to get paid for putting mileage on my car, so I can get a new car in less than 15 years. I would NOT work for UBER to make a living, because you can't. At least not in central NJ. You may think you can because you see the money going into your checking account, but wait till you have to replace your car.
> What do you think of my calculations? Have you sat down and calculated your net income? If so, why do you drive for UBER. Maybe after this you will have second thoughts.





ElectroFuzz said:


> A little too optimistic.
> The majority of cars will NOT make it to 200,000 miles.
> It's a fact, check it out.
> 
> ...


My Toyota RAV4 had 225k miles on it before I gave it to my son over a year ago and it is still going. No major repairs.


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## ElectroFuzz (Jun 10, 2014)

CowboyMC said:


> My Toyota RAV4 had 225k miles on it before I gave it to my son over a year ago and it is still going. No major repairs.


Yes, Toyotas are great.
I own 3 Camrys
One has over 200K but the other started smoking at 150K (same model, same year)
I took care of them equally, purchased both when they were 1 year old and under 30K.
Yes Camrys can last a long time but not all Camrys do.
Now what if I owned a Chevy or Dodge ? 
Would those go past 200K?


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## SunSmith (Apr 20, 2014)

My PT cruiser was 10 years old and 150,000 when I loaned it to a friend who totaled it. We'll see how the Ford I replaced it with does.


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