# Uber Drivers Keep Just 50% Of What Riders Pay



## chi1cabby (May 28, 2014)

*Uber drivers keep just 50% of what you pay*
ROB PRICE (Twitter @robaeprice)
http://uk.businessinsider.com/uber-customer-cost-breakdown-morgan-stanley-2015-2


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## chi1cabby (May 28, 2014)

This Morgan Stanley estimate of Drivers Costs is a nice start. But it completely ignores the $1/Ride Safe Rides Fee, and the outsized impact it has on the Effective Commission Rate paid by Drivers. Drivers are paying 40% Commission on Minimum Fare rides:
https://uberpeople.net/threads/what...initive-proof-theyre-lying-to-our-faces.4685/









And most Uber rides are indeed short Minimum Fare Rides:
https://uberpeople.net/threads/this-is-why-im-quitting.12643/


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## Casher (Feb 2, 2015)

50% is an outstanding profit margin for a small business. Hell, many would jump at just a 25% margin. Not a great argument against Uber in those terms.

Of course, gross sales then becomes the question.


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## chi1cabby (May 28, 2014)

Casher said:


> 50% is an outstanding profit margin for a small business. Hell, many would jump at just a 25% margin. Not a great argument against Uber in those terms.
> 
> Of course, gross sales then becomes the question.


Any which way you wanna look at it, UberX Drivers are just supplying Uber their labor & capital (cars) at minimum wage level earnings.


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## LAuberX (Jun 3, 2014)

Casher said:


> 50% is an outstanding profit margin for a small business. Hell, many would jump at just a 25% margin. Not a great argument against Uber in those terms.
> 
> Of course, gross sales then becomes the question.


Except when 50% means working 50 hours for $350.00

Keeping 50% as profit does not mean you made a living wage.


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## Oc_DriverX (Apr 29, 2014)

Casher said:


> 50% is an outstanding profit margin for a small business. Hell, many would jump at just a 25% margin. Not a great argument against Uber in those terms.
> 
> Of course, gross sales then becomes the question.


And there is a limit to how much in gross sales a driver can do in an hour. There is no scalability on the driver side.

Also, as was pointed out above, the actual Uber take is greater than 20%, due to the SRF. And, each % point more that Uber gets comes right out of the driver's pocket. It is probably safe to say that Uber's cut is really around 25%, so the driver's cut is down to 45%.


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## ElectroFuzz (Jun 10, 2014)

chi1cabby said:


> *Uber drivers keep just 50% of what you pay*
> ROB PRICE (Twitter @robaeprice)
> http://uk.businessinsider.com/uber-customer-cost-breakdown-morgan-stanley-2015-2
> View attachment 4718


Yep those were the good old days.

Note the numbers.
Total fare per mile *$1.50*
$0.75 is overhead (including Uber)
and $0.75 is profit for the driver.

Move forward to today:
Total fare per mile *$0.90*
Overhead almost the same (Uber makes a little less)
So profit for the driver is..... ???? (about $0.20 ..... maybe?)


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## UberHammer (Dec 5, 2014)

Casher said:


> 50% is an outstanding profit margin for a small business. Hell, many would jump at just a 25% margin. Not a great argument against Uber in those terms.
> 
> Of course, gross sales then becomes the question.


I'm pretty sure Morgan Stanley is including UberBlack and/or did the study prior to the rate cuts.

There is no possible way drivers in Lexington, Louisville and Nashville making $0.65, $0.70 and $0.73 per mile are keeping 50% of the fares after all those costs. I'm at $1.00/mile in Columbus and don't hit 50% on my numbers.


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## Casher (Feb 2, 2015)

At most current rates, it would appear that they're only competing with/for minimum wage jobs/employees and perhaps not even winning.

I assume that is why many may continue to drive. They view their alternative as fast food or retail.


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## Oc_DriverX (Apr 29, 2014)

UberHammer said:


> I'm pretty sure Morgan Stanley is including UberBlack and/or did the study prior to the rate cuts.
> 
> There is no possible way drivers in Lexington, Louisville and Nashville making $0.65, $0.70 and $0.73 per mile are keeping 50% of the fares after all those costs. I'm at $1.00/mile in Columbus and don't hit 50% on my numbers.


Isn't the commission rate 25% on Uber Black? It makes you wonder where they got the 20% number for Uber's take.


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## UberHammer (Dec 5, 2014)

Oc_DriverX said:


> Isn't the commission rate 25% on Uber Black? It makes you wonder where they got the 20% number for Uber's take.


From the same place people get the idea that the tip is included.... from Uber's lies.


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## LAuberX (Jun 3, 2014)

With SRF, and all the short rides we give Uber averages getting 28-29% of my gross fares each week.... At .90/mile


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## UberHammer (Dec 5, 2014)

Casher said:


> At most current rates, it would appear that they're only competing with/for minimum wage jobs/employees and perhaps not even winning.
> 
> I assume that is why many may continue to drive. They view their alternative as fast food or retail.


You'll make more at a minimum wage job. A lot of the cash that gets deposited in a drivers account at the end of the week isn't even comparable to a wage, let alone a minimum wage. It's just Uber reimbursing the driver for the use of their car. Anything left over that could be compared to wages is just around a few dollars an hour.... unless the driver is gaming the guarantee or benefiting from surge rates.


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## chi1cabby (May 28, 2014)

UberHammer said:


> I'm pretty sure Morgan Stanley is including UberBlack and/or did the study prior to the rate cuts.





Oc_DriverX said:


> Isn't the commission rate 25% on Uber Black? It makes you wonder where they got the 20% number for Uber's take.


Most people who write about Uber are grossly under informed.
Let's not bring UberBLACK into this discussion. It will just further confuse the topic.
UberX Drivers are 82% of Uber, and thus Are Uber for all practical purposes.


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## Uzcaliber (Aug 22, 2014)

Uber said after the cut drivers made more money. Then I found out later it was based on survey/interviews from about a thousand drivers. They have the numbers in their server, why not just crunch the numbers from their own servers, drivers' net earn/hour(online) or net earn/mile. May be they try to kill their competitors which make a good business strategy.


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## UberHammer (Dec 5, 2014)

Uzcaliber said:


> Uber said after the cut drivers made more money. Then I found out later it was based on survey/interviews from about a thousand drivers. They have the numbers in their server, why not just crunch the numbers from their own servers, drivers' net earn/hour(online) or net earn/mile. May be they try to kill their competitors which make a good business strategy.


Uber's numbers say driver's earned 11% more in fares by doing 45% more in trips.

By doing 45% more in trips the drivers costs increase 45%. More trips equals more work equals more costs. Fares minus costs are the drivers profit. If costs increase 45% while fares only increase by 11%, the driver would be lucky if they make the same profit after the cut. And even if they are it requires them to do 45% more work to earn make the same profit as before. Most are doing 45% more work and making LESS profit than before.

Can we please stop with the Uber has a "good business strategy" argument. Unless you own equity in Uber, it's completely meaningless.


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## Rich Brunelle (Jan 15, 2015)

First, everybody has to understand that data in a database can be manipulated to say pretty much what you want it to say, provided you ask the right question. Uber asks it's database how much Uber drivers make per hour, but they do not ask how much the driver makes during his entire shift of working. They ask how much he makes while in contact with the rider. The difference is significant. If you only check while in contact with rider, you may have only 2.5 hours out of 8 hours. Say you made $100.00. 100/2.5= $40.00 per hour. But, the driver has actually worked 8 hours to earn that $100.00. 100/8= $12.50 per hour. Quite a difference between $40.00 and $12.50 per hour.

Second, you need to realize that there is no white hat in any of the Uber Gang. There is no ethics, honesty, or integrity at all within Uber Administration. They are 100% for greed. They have and will lie to every person they have to without any concern for the truth. They will exploit drivers, lie to government, and bullshit the public and not give a damn your opinion, who they harm, or how much harm they cause. They simply do not give a damn about anything but bullying their way to get their way.

Third, there is likely not one study, survey, or report generated by or via Uber that speaks to the actual facts as needed. Every report generated by and for Uber is a sampling of certain portions of the data. In other words, we are being lied to.

Fourth, the subject report suggests that the driver keeps 50% of the fare, is horse-shit! At the end of the day, if I make money at all, it is consistently below $5.00 per hour and it does not matter if I work part-time, full-time, or overtime . . . I cannot earn enough to show a profit driving for Uber or any of the rideshares. Profit is the amount above the drivers salary that is left over after you pay the car, and pay the expenses. If I cannot even pay myself minimum wage, how do I show a profit. What am I supposed to do when it becomes time to replace my car, need tires, brakes, or a get a crack in my windshield?

The point I am trying to make, is Uber is straight up lying if they tell you that they are paying drivers a livable wage. The truth is Uber has hired 160,000 people as drivers, into dead end, poverty level jobs and we do not know what to do about it. The financial losses we are suddenly realizing are staggering and we sit in disbelief that in todays business, that this outrageous abuse can even happen.

Uber is lies, nothing but lies, and tomorrow there will be more lies!


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