Uber driver is Lowest income job

After 20 weeks of part-time driving  Uber, I took  the weekly  income from Uber APP, then do calculation try to find the uber driver net  income

1 Gross income

Gross income means directly paid from Uber App, which includes everything drivers need to spend for the expense, for example, gas, car maintenance, insurance, car degradation, etc.

The below table 1 is I take from the Uber APP week by week from the first drive of August to the end of December, the total number of weeks is 20 weeks, then use the number to do calculation to understand the performance of the uber driver..

Take 1 is the gross income table

Weeks Gross Income online time(hours) trip points tips  hour earning ($/hours)
1 $358.63 19 31 35 $20.60 $18.88
2 $1,247.29 57.5 110 124 $110.28 $21.69
3 $1,469.46 58.5 113 125 $166.07 $25.12
4 $797.02 29 58 72 $48.05 $27.48
5 $2,004.28 92.2 176 212 $156.31 $21.74
6 $1,873.64 80.3 156 184 $160.25 $23.33
7 $1,706.84 74.8 137 163 $140.57 $22.82
8 $664.77 28.3 54 62 $76.59 $23.49
9 $671.23 36.8 61 77 $49.71 $18.24
10 $1,038.63 52 83 109 $72.37 $19.97
11 $1,319.27 64 98 106 $79.99 $20.61
12 $1,483.77 87.4 120 140 $109.31 $16.98
13 $1,857.47 92.8 148 184 $148.34 $20.02
14 $124.60 5 8 8 $14.96 $24.92
15 $856.30 39.3 59 75 $63.60 $21.79
16 $1,283.39 69 109 125 $82.30 $18.60
17 $1,334.90 64.2 113 133 $91.42 $20.79
18 $1,131.56 50.8 99 127 $79.72 $22.27
19 $425.19 15.3 36 46 $51.19 $27.79
20 $603.72 27.3 49 65 $46.32 $22.11
Total $22,251.96 1043.5 1818 2172 1,767.95 $21.32

Online hours gross earning  

This is an important factor to describe the Uber driver’s performance,  which is directly demonstrated the Uber driver’s performance.

 From the bottom row of the total in the   table which is  showing the gross early per online hours is $21.32 /hours, the highest weeks is $27.79/hours If Uber driver can keep the car continuously operating, and each trip can connect together, which means if drop the rider, immediately drive to another place and no stop to wait, then the distance is very short to next raider, the Maximo gross early can reach $27 per hours, this situation is only will happen in the Friday afternoon to middle night or Saturday to middle night, most time Uber driver need wait 10 to 30 minutes to get next raider, the lowest week the gross income per online hours  is $16.98/hours

Average earning per trip

The total trip for 20 weeks is 1818 and the total early is $22251.96, so the average earning is $12.24/trip, this index is a demonstration of the average distance of the Uber driver per trip.

Average points earnings per trip

The total points earned is 2172, so the points per trip are 1.2, this index is a demonstration the peak hours driver time

The percentage of tips

The percentage of tips is 7.9% per gross income

The average tips per trip

The average tip per trip is $0.97, this is a demonstration the rider pays tips per tip is an average index.

2. expense

Table 2 is the expense lists from 20 weeks of driving and also includes the preparation for the Uber qualification expensive

Table 2 is the expense table

Item   expense
car degradation   $4,000.00
gas   $3,652.25
car maintenance   $2,125.00
oil change   $700.00
insurance   $1,000.00
speed tickets   $800.00
documents prepare   $544.00
car wash   $500.00
cell phone   $800.00
total expense   $14,121.25
     

Car degradation,

before I put my luxury 2016 Tuson in Uber operation the millage is 60,000kilometers, and it is worth $20,000, but after I drive 35,000kilometer reach 95,000 kilometers, the car was only valued at $16,000, the gas value decrease $4000

Gas used by car

To test how much gases will be used, I did several time tests, before going to trip full the tank, after each trip was completed, I did fill the tank again, then use the online hours to divide the gas consumption, the average is $3.5/hours, the total gas burned is $3,650

Us the total income from app dived the online time which is the gross income, then next day to fill the tank, use the cost for the tank to divide the total income, is you gas cost, for example, you have 300 dollars for the gross income, fill the tank cost you 50, then divide the 15, get 3.5, then net income for the $16.5, which does not include the maintenance, insure cost,car degradation, which the income net will be less than $15/hours

car maintenance

which includes 1 set of all-season tire ($800), 1 set of the winter tire (910), 1-time tire alignment, 1-time car tow, 1-time tire repair

Oil change

Different car manufacture request the oil change interval is different for hundyai Tucson, the manufacture requests to change oil and oil filter every 6000 kilometer distance, for 35000 kilometers, they request almost 6 times to change the oil

Insurance

Insurance is fix paid to the insurance company

Speed tickets

In the 35000 kilometers drive, due to not being familiar with the road and don’t the hiding camera location, and also plus the rider some time try to catch their time to request to driver faster than normal speed to receive the tickets from the mail, not to be caught by police

Car wash

Almost every week need to do car wash and daily need to vacuum the inside of the car and sanitize the car

Cell phone charge

Includes new apple phone and internet cost

3 Net Income

After the total gross income to minus the total expense, the results is $8130.71

Then divide the total online hours 1043.3 hours

The net online hour’s income is 7.8/hours

Then take the tax out the really net income for the driver is $6. hours/hour which still does not take out the food and office expense, after taking the food and the office expense, the real net income will be around  $5/hours

4 conclusion and discussion  

The net income is below $5/hors to cause the Uber driver is world lowest pay job $5/hours, which is far below the minimum paid from regulation

Due to low income, the full-time driver must drive a very long time per day to maintain the lowest level of life, which some drivers need to drive  up  14 to 16 hours per day and per 7 days a week  

5.  Does Uber take 25% service is reasonable

uber drivers get remainder 75% of the trip, this will include the driver time, gas, car maintenance, car insurance, car degradation, etc.

DO you think Uber takes too much service fee from the rider?

 

Reference Documents

 

Reference documents 2

 

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