# Uber at $0.75 a mile vs taxi driving at $2 a mile. Some math



## uberwatcher (Sep 18, 2014)

Here they do a 50/50 split system where the taxi driver gets 50% of the fare+tips. You pay for gas and that is it. Here the flag drop (base fare) is $4.20.

So let us say as a cab driver you drive 150 miles total. Half are paid the other half aren't. You're in an old crown victoria so you get 20 mpg. You get about $25 in tips per day. Let's say you get 10 trips per day on average.

10 trips * $4.20 = $42.00
75 miles * $2 = 150.00

$150.00 + $42.00 = $192.00

192.00 * .5 = $96 (your share of 50%)

$96.00 + $25 = $121.00 (after tips)

Gas expense = 150 miles / 20 mpg = 7.5 gallons * $2 a gallon = $15.00 gas expense

$121.00 - $15.00 = $106.00 take home NET profit from taxi driving

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Uber @ .75 mile. same 150 total miles with 75 paid miles. $1 base fare and $1 safe ride so let us just say they cancel each other out.

75 miles * .75 per mile = $56.35 gross profit
Uber's cut at 20% = $56.35 * .80 = $45.08

$45.08 + $10 tips (Uber discourages tips) = $55.08

$55.08 - $15.00 gas expense = $45.08 take home profit from Uber before depreciation

*BOTTOM LINE: So $106 taxi driving vs $45.08 Uber (and you haven't accounted for the depreciation yet)*

Of course with a taxi it usually has to be 10-12 hours per day. Also the 50/50 system is kind of unusual. It's often a lease based system. But many taxis charge three times the rate Uber is in the 75 cent per mile areas.

Also this assumes no surge or guarantees.


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## UberHammer (Dec 5, 2014)

Taxi drivers who switched to Uber are switching back to driving a taxi. They're not stupid.

Anyone continuing to drive at these rates however is a dumbass.


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## chi1cabby (May 28, 2014)

uberwatcher said:


> Here they do a 50/50 split system where the taxi driver gets 50% of the fare+tips.


Where is "here", and are you a cab driver?
I ask because split system is not used anywhere anymore, as far as I know. Cabs lease is paid upfront by Drivers. Drivers keep 100% of the fares + tips. And Drivers pay for gas additionally.


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## uberwatcher (Sep 18, 2014)

chi1cabby said:


> Where is "here", and are you a cab driver?
> I ask because split system is not used anywhere anymore, as far as I know. Cabs are lease is paid upfront by Drivers. Drivers keep 100% of the fares + tips. And Drivers pay for gas additionally.


Day tona Beach FL Yellow cab. But they do the 50/50 split system plus also have owner-operators who pay a radio fee. The 50/50 system here is pretty standard and most of the big companies do it.

You still end up making under $10 an hour here on it. Usually more like $5 an hour. But Uber at 75 cents a mile would be far worse. So far Uber is $1.80 mile here but that shall change for sure as it always does!


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## Farman vegas (Aug 8, 2014)

chi1cabby said:


> Where is "here", and are you a cab driver?
> I ask because split system is not used anywhere anymore, as far as I know. Cabs are lease is paid upfront by Drivers. Drivers keep 100% of the fares + tips. And Drivers pay for gas additionally.[/QUOTE
> 
> Taxicab driver's in Las Vegas work as employees because the city has over 700, 000 population base the law has requires this for the past 40 years. Taxicab drivers work under a commission structure of between 30 to 50 percent you get to keep. Then taxicab drivers pay taxes on the remaining funds after gas and the trip charge and the tip charge.
> ...


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## dandy driver (Jan 28, 2015)

uberwatcher said:


> Here they do a 50/50 split system where the taxi driver gets 50% of the fare+tips. You pay for gas and that is it. Here the flag drop (base fare) is $4.20.
> 
> So let us say as a cab driver you drive 150 miles total. Half are paid the other half aren't. You're in an old crown victoria so you get 20 mpg. You get about $25 in tips per day. Let's say you get 10 trips per day on average.
> 
> ...


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## dandy driver (Jan 28, 2015)

If 20,000-50,000 New drivers a month are added how many total drivers will be making money at less than $1.oo per mile and no surge pricing because Uber Now has : 25,000,000 million drivers ?


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## Lidman (Nov 13, 2014)

chi1cabby said:


> Where is "here", and are you a cab driver?
> I ask because split system is not used anywhere anymore, as far as I know. Cabs are lease is paid upfront by Drivers. Drivers keep 100% of the fares + tips. And Drivers pay for gas additionally.


 Some companies still do splits. My company gets 60% of the fares but they pay for the gas.


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