The Truth about Uber Driver Economics
Ok so I was looking at this graph put on Uber's website today and thought it looked too good to be true. How amazing that Uber drivers make more than any other type of driver.
But I knew from my own experience as a rider that Uber didn't cost that much. In fact, Uber is pretty cheap if you're a passenger.
Sooooo. how can uber be so cheap, and yet the drivers make so much money???
Now Uber has cut pay to drivers in Detroit to 24cents a mile , but we�re going to stick to the 90c for now.
Uber takes 20% of the total fare from the driver for older drivers. Newer drivers get 25% taken.
So we�re down to 67.5c per mile.
Then you have to deduct tax:
In some LA County's, sales tax is as high as 10%, and Uber doesn�t withold taxes for you. The drives are responsible for keeping this money aside to pay the tax department in April.
So with the 10% deducted, we�re down to (just over 60 cents) 60.75c
Now we need to factor in depreciation of the