# Pay for real



## DetroitMichael (May 30, 2015)

There are some people who post here who have had 25 rides....others who have had 2,500 rides.

It doesn't matter. Let's assume the 2,500 ride person.

Let's also assume the average fare to the customer is $10. That's $25,000. Take out the 20% cut. That's $5k.

In what other business are you going to get marketing -and- an app....for a measly $5,000 in order to get 2,500 rides in a year?

So many complain, yet they forget about the other costs if they went about this on their own.

It's time to sit back and look at reality. I want to make lots of money, too, but I also stand behind the marketing powerhouse to freely give opportunities for it's people for $2.40+ per trip. If I did this on my own, the costs would be more like $100.40 per trip.

I don't care for the Uber driver model, but I have owned a business and undestand the costs involved. Stop treating Uber like it's supposed to be some sort of soup kitchen for you. Accept your handouts and shut up, or get out. (And if you've already quit, you really have no business being here outside of regret.)

It's your livelihood or income....make something of it.

[edited to take out background check values, and changed monthly to yearly]


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## Amsoil Uber Connect (Jan 14, 2015)

How does that saying go about the word Assume ?


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## Pubsber (Mar 24, 2015)

How low must Uber go until you change your perspective. $0.30 a mile? I wonder how Uber became a 40 billing dollar valuation company. Its no wonder why Google and Apple are not successful. They arent successful because they pay their developers(the people who helped them become what they are today) too high of a salary. Google and Apple should follow Ubers example and cut their developers salary and take their customer sides no matter what. Only then they will become successful.


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## Fuzzyelvis (Dec 7, 2014)

DetroitMichael said:


> There are some people who post here who have had 25 rides....others who have had 2,500 rides.
> 
> It doesn't matter. Let's assume the 2,500 ride person.
> 
> ...


It's late and I'm tired but what is the 40,000 # from? And the $8500? I'm usually good at math but I'm so not following you on this.

And who the hell is doing 2500 rides per month?

I'm confused.


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## suewho (Sep 27, 2014)

Dont bother trying to work it out fuzzy, its a completely useless post.


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## unter ling (Sep 29, 2014)

DetroitMichael said:


> There are some people who post here who have had 25 rides....others who have had 2,500 rides.
> 
> It doesn't matter. Let's assume the 2,500 ride person.
> 
> ...


so if the cost of a backround check is $10, then a new driver needs to do 10 trips to recoup the $10 For the backround check
if the driver does 100 trips, then uber have made $90 profit.


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## TimFromMA (Mar 4, 2015)

I like cheese.


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## LoneXer (May 30, 2015)

If the mayor don't give this guy the key idfk what his world is coming to


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## suewho (Sep 27, 2014)

TimFromMA said:


> I like cheese.


what kind?


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## TimFromMA (Mar 4, 2015)

suewho said:


> what kind?


Depends on the meal.

Lasagna: mozzarella and ricotta
Salad: feta
Burgers: American
cold cut sub: swiss and provolone
Crackers: cheddar
stand alone snack: cottage
spaghetti: parmesean and romano


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## UberRidiculous (May 19, 2015)

Pubsber said:


> How low must Uber go until you change your perspective. $0.30 a mile? I wonder how Uber became a 40 billing dollar valuation company. Its no wonder why Google and Apple are not successful. They arent successful because they pay their developers(the people who helped them become what they are today) too high of a salary. Google and Apple should follow Ubers example and cut their developers salary and take their customer sides no matter what. Only then they will become successful.


Awesome post! I hope the sarcasm is clear to everyone.


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## DetroitMichael (May 30, 2015)

I edited the post. I was meaning annually, but was typing monthly.


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## Fuzzyelvis (Dec 7, 2014)

DetroitMichael said:


> I edited the post. I was meaning annually, but was typing monthly.


Whatever. I'm still not following you.


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## Backdash (Jan 28, 2015)

People ask me often "what's Ubers take on the fare? ".

I tell them 20%. Then add how it's really very fair since I don't have to spend any money or time drumming up business.


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## ElectroFuzz (Jun 10, 2014)

DetroitMichael said:


> There are some people who post here who have had 25 rides....others who have had 2,500 rides.
> 
> It doesn't matter. Let's assume the 2,500 ride person.
> 
> ...


It's all about net profit.
Our operating costs are fixed.
Every rate deduction comes out of our net profit.
What people fail to realize is that at $1.50 you make about $0.40 net profit
At $1.20 you make about $0.10 net profit.
So a rate that goes down from $1.50 to $1.20 is a 75% cut in your net profits.


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## LUXYRIDE (Jul 5, 2014)

> ="Let's also assume the average fare to the customer is $10. That's $25,000. Take out the 20% cut. That's $5k.".


Let's base this in reality (for RI) that the average fare to the customer is $4. That's $10,000. Take out the 20% cut, that's $2,000. *To get 2,500 rides in a year would be a blessing.* Reality is less than 1,000 rides per year (assuming 8 hour day)


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## johnywinslow (Oct 30, 2014)

Uber is like fishing, some days you get nothing but little one, once in a while you land a whale. problem is that the good fares are less and less, the shitty ones are now the norm!


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## Emp9 (Apr 9, 2015)

you forgot another 2,500 off the top in riders fees. then take away a year of gas and wear and tear ,car payment and see its much less thats what the complaints are.


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## UberRidiculous (May 19, 2015)

Backdash said:


> People ask me often "what's Ubers take on the fare? ".
> 
> I tell them 20%. Then add how it's really very fair since I don't have to spend any money or time drumming up business.


The split isn't the problem. The fares & per mile are at a deficit coming out of the gate for too many drivers. I don't think anyone would care if Uber asked for 50%, if the fares justified it. There are lots of business models that rely on 50/50 splits that are win/win for the company and the contractor. Uber isn't designed to be win/win.


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## DrJeecheroo (Feb 12, 2015)

Amsoil Uber Connect said:


> How does that saying go about the word Assume ?


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## ARIV005 (Mar 4, 2015)

Backdash said:


> People ask me often "what's Ubers take on the fare? ".
> 
> I tell them 20%. Then add how it's really very fair since I don't have to spend any money or time drumming up business.


Left testicle would have been the correct answer to that question.


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## ARIV005 (Mar 4, 2015)

ElectroFuzz said:


> It's all about net profit.
> Our operating costs are fixed.
> Every rate deduction comes out of our net profit.
> What people fail to realize is that at $1.50 you make about $0.40 net profit
> ...


10 cents... Can't even buy 3 gummy fish.


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## GooberX (May 13, 2015)

DetroitMichael said:


> There are some people who post here who have had 25 rides....others who have had 2,500 rides.
> 
> It doesn't matter. Let's assume the 2,500 ride person.
> 
> ...


A new level of stupid.

I bow to your ignorance sir.


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## DetroitMichael (May 30, 2015)

All businesses have expenses. Usually the largest costs are payroll and marketing. In this case, marketing would be a huge expense. 25, 1K, or 2,500 rides....we're actually paying a small share of what it actually costs for reaching and branding amongst that many people. Driving for Uber is small business. Some smaller brick-and-mortar store owners are seeing the similar returns after shouldering 100% of the expenses.

I certainly support higher compensation, but for now, I'm choosing to keep this gig going and need to adjust accordingly by putting many of the fellow-driver tips shared on this forum into place to enhance my bottom line.


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## UberRidiculous (May 19, 2015)

DetroitMichael said:


> I certainly support higher compensation, but for now, I'm choosing to keep this gig going and need to adjust accordingly by putting many of the fellow-driver tips shared on this forum into place to enhance my bottom line.


Michael I am so happy you are listening and reading. I was worried when I read your first post too, but felt a little speechless... which doesn't happen often wink wink lol. So yes keep reading. Know your #s. Know what Uber is paying you per mile. Know what it costs you per mile. And figure in your dead miles (miles driven while Ubering that Uber doesn't pay you for). And take what's left and divide it by the # of hours you have invested. That includes time commuting, prepping your car and time waiting. Because every minute you devote to Uber could be devoted to some other income producing strategy. The idea is to make the most with your time. That's the short answer. The seasoned pros on this site can explain better. But you are now in the right frame of mind.


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## DetroitMichael (May 30, 2015)

When I started, I thought Uber X would cover my $2,500 per month living expenses. And maybe before any rate cuts that would have been possible. To get that same amount now I'm not going to risk a hemorrhoid, or no life. So, I changed my goals. I drive to cover my car note and the overhead mileage expenses to get there. Once I reach that, I am free to be done for the month. I'm thinking of making it into a vacation fund. 

I also had a 90-something cent overall cost per mile when I started. I've got that down to the low 80s. It could be lower, but my ADD personality doesn't let me sit in one place for too long. 

Having a plan for low fares will only help me if/when fares increase.


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## DrJeecheroo (Feb 12, 2015)

Are the rates in Detroit still under $1, or did they recently raise them?


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## DetroitMichael (May 30, 2015)

We're at .75/.15 with a $4 min.


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## UberRidiculous (May 19, 2015)

DetroitMichael said:


> We're at .75/.15 with a $4 min.


RIGHT! BUT Uber takes the $1 SRF out of that $4. So minimum pay on minimum fare is actually $2.40. AND then I'm reading on this forum that drivers 1099 will include those SRFs. THAT'S messed up! Can't believe that's not illegal kinda messed up.


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## DetroitMichael (May 30, 2015)

The 1099 will show gross, but we have to deduct the SRF along with any other deductions. We're not taxed on the gross alone. And the gross reporting is an IRS requirement, not an Uber thing. Don't panic.


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## DetroitMichael (May 30, 2015)

I know we each have different income goals, but for me, assuming $2.40 per trip, I only need to have about 30 rides per month to meet my goals and associated expenses to reach that goal. If I'm planning for a special birthday or anniversary, I may shoot for 45 rides to cover the KFC meal deal.


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## GooberX (May 13, 2015)

DetroitMichael said:


> I know we each have different income goals, but for me, assuming $2.40 per trip, I only need to have about 30 rides per month to meet my goals and associated expenses to reach that goal. If I'm planning for a special birthday or anniversary, I may shoot for 45 rides to cover the KFC meal deal.


I don't understand your math, but ok.

I hope it all works for you, but $72 for car note and expenses?

What the hell are you driving? CInderella's pumpkin chariot?


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## DetroitMichael (May 30, 2015)

LOL. Me neither. That's supposed to be 300 and 450?. Doh, me!


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## Emp9 (Apr 9, 2015)

DetroitMichael said:


> We're at .75/.15 with a $4 min.


wow short trips you will actually lose money depending on how far the ping is.


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## Smooth954 (Aug 25, 2014)

DetroitMichael said:


> All businesses have expenses. Usually the largest costs are payroll and marketing. In this case, marketing would be a huge expense. 25, 1K, or 2,500 rides....we're actually paying a small share of what it actually costs for reaching and branding amongst that many people. Driving for Uber is small business. Some smaller brick-and-mortar store owners are seeing the similar returns after shouldering 100% of the expenses.
> 
> I certainly support higher compensation, but for now, I'm choosing to keep this gig going and need to adjust accordingly by putting many of the fellow-driver tips shared on this forum into place to enhance my bottom line.


I notice your in Detroit which uber have not been out there for too long so I can some what understand you ignorance, but if you were from one of the earlier cities like SF are NYC then you would know uber did not spend a cent on marketing to the customers it was all word of mouth and social media. Freemium sites like Twitter Facebook etc.. Sign up and post no need to spend millions doing that. This was long before uberx existed. It was only black cars and the shock affect of a s-class Benz are escalade picking you up was enough for you to tell a friend to tell a friend. The average joe if he/she were in the know was now rolling similar to Wall Street traders and high level execs. Uber was paying Us hourly plus commission to keep our cars on the road that was the smartest thing they did otherwise the app would of died right there. No one was really using it due to the fact there was little awareness of uber again no advertisement. Also they implemented a ridiculous amount of interns in a shared office space on Nassau Ave in the Williamsburg section of Brooklyn New York called The Yards. All interns for working for college experience are very low wages so there goes the payroll problem. It's ok if you love uber but your not convincing anyone that it is the best thing since slice bread.


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## 20yearsdriving (Dec 14, 2014)

DetroitMichael said:


> There are some people who post here who have had 25 rides....others who have had 2,500 rides.
> 
> It doesn't matter. Let's assume the 2,500 ride person.
> 
> ...


Costco 48pack =24.00

7/11. Single =2.00

Justification if you purchased at Costco
You have to spend 24 dollar

Who else will let you have one for 2 bucks


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## Oscar Levant (Aug 15, 2014)

DetroitMichael said:


> There are some people who post here who have had 25 rides....others who have had 2,500 rides.
> 
> It doesn't matter. Let's assume the 2,500 ride person.
> 
> ...


Here's whats wrong with your logic.

You're saying that if someone is screwing you, leave.

NO, because they will continue to screw others.

No one is asking Uber to be a soup kitchen, but only to offer soup that has enough nutrition to sustain the body.

Is that too much to ask?


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## GooberX (May 13, 2015)

Oscar Levant said:


> Here's whats wrong with your logic.
> 
> You're saying that if someone is screwing you, leave.
> 
> ...


Unbelievable


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