# Rising Gas Prices & Rising Pay



## Maven (Feb 9, 2017)

Gas prices have been rising steadily for the last few weeks and most predictions are gas prices will continue to rise 40 cents per gallon or more by summer. This directly affects the profitability and effective net pay of rideshare drivers and delivery drivers, who are independent contractors paying for their own gas, including Uber, Lyft, GrubHub, DoorDash, etc. What are the chances, if any, that driver pay will increase to compensate for increased expenses?


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## Uberglenn (Jan 18, 2017)

None uber will not increase pay, if anything uber will decrease pay. The theory is that if they decrease pay you will get more fares and be able to make up the difference. This theory is why uber is losing money.


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## SEAL Team 5 (Dec 19, 2015)

Maven said:


> What are the chances, if any, that driver pay will increase to compensate for increased expenses?


The same chance that an Uber driver has of becoming an employee. Not a chance in hell!!!


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## Lee239 (Mar 24, 2017)

0.0 Uber and any other rideshare does not care, that's why they hire anyone and everyone who passes a background check. 

When I worked in taxis and gas was $4 a gallon our boss refused to raise rates. I eventually quit for other reasons but paying $60 a day in gas was a big factor.


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## Mars Troll Number 4 (Oct 30, 2015)

Uber never raises rates...


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## Abraxas79 (Feb 7, 2016)

Uberglenn said:


> None uber will not increase pay, if anything uber will decrease pay. The theory is that if they decrease pay you will get more fares and be able to make up the difference. This theory is why uber is losing money.


Indeed the economic textbooks will highlight UBER as one of the worst economic models to adopt by any company in any market. We have seen fuel increases of 10, 15 now 20%, yet UBER leaves the rate as is. Drivers stop driving, UBER throws away more of referrals. New Drivers drive each other around the block, new drivers realize its a scam, stop driving Rinse and repeat.

Most of the is a result of UBER not bearing of the expense and not caring what the driver's expenses at all.


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## Grahamcracker (Nov 2, 2016)

Mears Troll Number 4 said:


> Uber never raises rates...


Our rates here went from $1.00 to $1.50 per mile and $.20 to $.22 per minute in January because Uber was losing to Lyft. If driver's drove only for the higher paying company, then Uber will have no choice to raise rates.


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## Uberglenn (Jan 18, 2017)

Abraxas79 said:


> Indeed the economic textbooks will highlight UBER as one of the worst economic models to adopt by any company in any market. We have seen fuel increases of 10, 15 now 20%, yet UBER leaves the rate as is. Drivers stop driving, UBER throws away more of referrals. New Drivers drive each other around the block, new drivers realize its a scam, stop driving Rinse and repeat.
> 
> Most of the is a result of UBER not bearing of the expense and not caring what the driver's expenses at all.


At some point of time uber will run out of drivers or riders wont be picked up. At that point ubercwill.be forced to change



Grahamcracker said:


> Our rates here went from $1.00 to $1.50 per mile and $.20 to $.22 per minute in January because Uber was losing to Lyft. If driver's drove only for the higher paying company, then Uber will have no choice to raise rates.


Was the rates you talk here in tampa. And this last January


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## DelaJoe (Aug 11, 2015)

Gas prices ARE NOT rising...in fact they are at historic lows. So much oil has been discovered in the last few years. America has enough oil for another 100 years within our borders. The prices might be going up because of new taxes. Oil has been trading between 40-60 a barrel for the past couple of years. We haven't seen 100+ oil in a decade...


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## Grahamcracker (Nov 2, 2016)

Uberglenn said:


> At some point of time uber will run out of drivers or riders wont be picked up. At that point ubercwill.be forced to change
> 
> Was the rates you talk here in tampa. And this last January


Nope, it w as s Hawaii and yes, in January


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## Trafficat (Dec 19, 2016)

DelaJoe said:


> Gas prices ARE NOT rising...in fact they are at historic lows. So much oil has been discovered in the last few years. America has enough oil for another 100 years within our borders. The prices might be going up because of new taxes. Oil has been trading between 40-60 a barrel for the past couple of years. We haven't seen 100+ oil in a decade...


Oil may be abundant but the government keeps increasing taxes etc.

Around here gas has gone up from being about $2.50 a gallon consistently a few months ago to about $2.85 a gallon right now. If I drive to the Tahoe area gas is always about $3.00 a gallon.

It is cheaper than the $4 gallons we had a few years ago, but at the rate things are going we will be back at $4 a gallon by next year.


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## DelaJoe (Aug 11, 2015)

Trafficat said:


> Oil may be abundant but the government keeps increasing taxes etc.
> 
> Around here gas has gone up from being about $2.50 a gallon consistently a few months ago to about $2.85 a gallon right now. If I drive to the Tahoe area gas is always about $3.00 a gallon.
> 
> It is cheaper than the $4 gallons we had a few years ago, but at the rate things are going we will be back at $4 a gallon by next year.


If it bothers you that much than switch to a hybrid or electric vehicle...good luck when you need the battery replaced. Good luck when you are on a long run and your battery runs empty.



DelaJoe said:


> If it bothers you that much than switch to a hybrid or electric vehicle...good luck when you need the battery replaced. Good luck when you are on a long run and your battery runs empty.


You go to parts of Texas and Oklahoma and gas is $1.75/gallon.


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## Titanium Uber (Mar 5, 2017)

$1.94 central Indiana today.


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## Maven (Feb 9, 2017)

DelaJoe said:


> Gas prices ARE NOT rising...in fact they are at historic lows. So much oil has been discovered in the last few years. America has enough oil for another 100 years within our borders. The prices might be going up because of new taxes. Oil has been trading between 40-60 a barrel for the past couple of years. We haven't seen 100+ oil in a decade...


Gas prices WERE rising for most of April until a few days before May 1st, when gas station are required to switch over to more expensive summer blends. Gas prices have been falling more recently. See chart below from GasBuddy.










How does this relate to actual take-home Uber Driver Pay after Uber-fee and expenses vs. Uber's plan/goal? See charts below:










Why shouldn't Drivers should follow Uber's example and lose money just as fast? Wouldn't Wall Street value our assets in the $Billions like Uber's?


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## OverTheBarrell (May 7, 2017)

Maven said:


> Gas prices have been rising steadily for the last few weeks and most predictions are gas prices will continue to rise 40 cents per gallon or more by summer. This directly affects the profitability and effective net pay of rideshare drivers and delivery drivers, who are independent contractors paying for their own gas, including Uber, Lyft, GrubHub, DoorDash, etc. What are the chances, if any, that driver pay will increase to compensate for increased expenses?


40c/gallon... hmm that's about 50c Aud /Gallon .. which changes to 50cAud/3.8 Litres ... 
here we get a weekly price spike difference of 30-35c/litre  
so working it backwards... 20cUS/Litre .. that wold be about 60-70c/Gallon surging every vweek?

The USA does have the cheapest prices around... 
our avage price for Gasoline (regular).. 1.20-1.30/litre ... that's 4.00aud/gallon ... 
or about $3Us/Gallon... 
correct me if I'm wrong...


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## Maven (Feb 9, 2017)

OverTheBarrell said:


> ...The USA does have the cheapest prices around...correct me if I'm wrong...


You are absolutely correct. The USA does have the cheapest prices, for two major reasons:

The government heavily subsidies the oil and gas industry, which despite taxes (paid by the consumer) keeps gasoline prices down.
The USA produces a massive amount of petroleum products, although still is a net importer.


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## DelaJoe (Aug 11, 2015)

Bottom line is if I drive 20,000 miles for Uber this year I am going to make about $15,000 in deposits. My gas cost is going to be about $1,600. My tips will be approximately $1,200. My IRS deduction will be over $10,000 which means most of my earnings will be tax free. Quit complaining about gas prices...gas accounts for about 10% of your earnings and if you good at getting tips they cover most or all of your gas. The IRS is very generous with the mileage deduction. If I had to pay Federal, State and FICA(both sides) on my entire earnings it would wipe out about 35% of my earnings. Uber is my side job. I don't want to pay full taxes on this job otherwise it will eat most of my profits.


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## Mars Troll Number 4 (Oct 30, 2015)

DelaJoe said:


> Bottom line is if I drive 20,000 miles for Uber this year I am going to make about $15,000 in deposits. My gas cost is going to be about $1,600. My tips will be approximately $1,200. My IRS deduction will be over $10,000 which means most of my earnings will be tax free. Quit complaining about gas prices...gas accounts for about 10% of your earnings and if you good at getting tips they cover most or all of your gas. The IRS is very generous with the mileage deduction. If I had to pay Federal, State and FICA(both sides) on my entire earnings it would wipe out about 35% of my earnings. Uber is my side job. I don't want to pay full taxes on this job otherwise it will eat most of my profits.


I haven't ever seen any method of calculating expenses that puts any kind of car that burns gas at less than 20c a mile after depreciation, maintenance ect.

And the electric cars don't have the range i would want out of it to be able to work with. I would need 400+ miles to be able to have a range of 300+ miles with an aging battery, which is the bare minimum number of miles i would need for a days work and have no fear of not getting home.
I would feel a lot better with 500+ mile range so as the battery ages i'd be able to sill do 350+.

Cab companies have adopted Hybrid tech so i have no doubt that electric cars will get adopted once these issues are worked out.


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## DJ_MJ (Apr 28, 2017)

DelaJoe said:


> Gas prices ARE NOT rising...in fact they are at historic lows. We haven't seen 100+ oil in a decade...


Gas prices are nowhere close to "historic lows" and oil was trading at $100 as recent as August of 2014. I live in ND, where the oil boom made this place the economic envy of the nation between 2009 and 2014. Things have changed in the last couple years. I love the internet, where every doorknob thinks that reality is simply what they want it to be.


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## AintWorthIt (Sep 30, 2014)

Gas shot up here in Louisville overnight it was at 2.11 and at 2.68 now.


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