# what is break even pay



## chet (Jan 29, 2016)

I got the message that they were reducing pay to $1.15 per mile $.15 min in Mobile Al. Here my answer.
Congratulations you have just priced us out of business!! With car maintenance at $0.45 per mile, $1.15 less UBER 25% cut only leaves $0.87 per mile. Since at least two miles are driven for every paid mile, $0.45 times 2 equals $0.90. It is costing us $0.03 /a mile more than we are paid!! That leaves $0.15 a minute for labor, but uber takes its cut of 25% which leaves us with $0.11 a minute. $0.11 a minute is $6.66 per hour. If we drive an average of 50% of the time it is $3.33 per hour minus the $0.03 it cost us more per mile to drive than we are being paid. If we drive an average of 10 miles per hour that is another $0.30 deduction. So now the hourly rate is $3.03 per hour. If you add the base rate $1.50 per ride - uber discount of 25% it is $1.13per ride. We must get 4 rides per hour to earn $7.55 per hour. NOT EVEN MINIMUM WAGE!!!
Update

WASHINGTON - The Internal Revenue Service today issued the 2015 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.

Beginning on Jan. 1, 2015, the standard mileage rates for the use of a car, van, pickup or panel truck will be:


57.5 cents per mile for business miles driven, up from 56 cents in 2014
This means that the break even price is $1.15 per mile net minimum if you are averaging 50% occupied rides of total miles driven while ubering, which is next to impossible. If you add in Uber Charge the gross pay would have to be $ 1.53 per mile!


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## Bill Collector (Dec 17, 2015)

Some member somewhere posted taking Uber for a minimum wage job is better than driving for Uber.


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## SEAL Team 5 (Dec 19, 2015)

chet said:


> I got the message that they were reducing pay to $1.15 per mile $.15 min in Mobile Al. Here my answer.
> Congratulations you have just priced us out of business!! With car maintenance at $0.45 per mile, $1.15 less UBER 25% cut only leaves $0.87 per mile. Since at least two miles are driven for every paid mile, $0.45 times 2 equals $0.90. It is costing us $0.03 /a mile more than we are paid!! That leaves $0.15 a minute for labor, but uber takes its cut of 25% which leaves us with $0.11 a minute. $0.11 a minute is $6.66 per hour. If we drive an average of 50% of the time it is $3.33 per hour minus the $0.03 it cost us more per mile to drive than we are being paid. If we drive an average of 10 miles per hour that is another $0.30 deduction. So now the hourly rate is $3.03 per hour. If you add the base rate $1.50 per ride - uber discount of 25% it is $1.13per ride. We must get 4 rides per hour to earn $7.55 per hour. NOT EVEN MINIMUM WAGE!!!


Well Travis did say that he wants Uber to be cheaper than owning a car. And forget about the cost of a driver for that car.


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## Rufjag (Jan 10, 2016)

Can you believe Uber still has drivers in Jacksonville even with the new rates of...(wait for it)...$.65 per mile and something like $.13 per minute? It's true. On the same day I learned of the new rates (Jan. 11) I totalled my 2014 Nissan. Thank God I was off the app! At least the loan got paid off. Now I'm without a car. That's OK though. I figure I'll ride with Uber. It's cheaper than owning a car. For real!


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## Oscar Levant (Aug 15, 2014)

chet said:


> I got the message that they were reducing pay to $1.15 per mile $.15 min in Mobile Al. Here my answer.
> Congratulations you have just priced us out of business!! With car maintenance at $0.45 per mile, $1.15 less UBER 25% cut only leaves $0.87 per mile. Since at least two miles are driven for every paid mile, $0.45 times 2 equals $0.90. It is costing us $0.03 /a mile more than we are paid!! That leaves $0.15 a minute for labor, but uber takes its cut of 25% which leaves us with $0.11 a minute. $0.11 a minute is $6.66 per hour. If we drive an average of 50% of the time it is $3.33 per hour minus the $0.03 it cost us more per mile to drive than we are being paid. If we drive an average of 10 miles per hour that is another $0.30 deduction. So now the hourly rate is $3.03 per hour. If you add the base rate $1.50 per ride - uber discount of 25% it is $1.13per ride. We must get 4 rides per hour to earn $7.55 per hour. NOT EVEN MINIMUM WAGE!!!
> Update
> 
> ...


That's right, if paid miles runs about 50% then you have to double the IRS rate for the Uber rate to break even. But, you also must factor in the timer fee, which I think adds about another 50cents per mile on the average.

Most taximeters record paid miles and total miles driven, it's too bad the Uber app doesn't do this, as well, I'd like to
know what my paid miles are.


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## chet (Jan 29, 2016)

Oscar Levant said:


> That's right, if paid miles runs about 50% then you have to double the IRS rate for the Uber rate to break even. But, you also must factor in the timer fee, which I think adds about another 50cents per mile on the average.
> 
> Most taximeters record paid miles and total miles driven, it's too bad the Uber app doesn't do this, as well, I'd like to
> know what my paid miles are.


Actually I did cover the timer fee in my post too! In Mobile Al. The timer fee is $.15 ($.11 net) this means you are earning $6.60 per hour for the timer fee while the fimer is running. We are paid nothing in route to pick up pasengers so the percentage applies to that also.


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