Patrick McKenzie

I've wondered about this. I worked more than a few retail jobs when I was school, and though you don't see the order-of-magnitude output diff you could see amongst e.g. engineers, certainly some employees were 1.5-2x others. AFAICT, pay was basically flat, or based on time served

Do they still make better money after accounting for long term car maintenance/replacement costs? This is one of the harder parts of the trucking industry for newcomers. I wonder how it works with cars.

The most insidious thing about Uber/Lyft is the way they’ve gulled drivers into thinking they’re making “more money.” In reality, taxes + running expenses + accelerated depreciation = sub-minimum wage for the majority. #innumerate

Are the any hard math breakdowns of this assertion? Unless I grossly misunderstand accelerated depreciation, I can't arrive at your conclusion. Full disclaimer: I've never driven for uber, only anecdotal discussions w drivers.

A typical Uber driver will get something like 70-80¢ per mile driven with a passenger. Including deadhead miles though, it’s more like 30-50¢ a mile driven. A car that gets 35mpg, gas at say $3.50 a gal? That’s 10¢/mi just for gas. Add oil changes, tires, brake service... - 1/4

Oil change $60/5k mi, tires $800/40k mi, etc etc. Maintenance alone tots up to around 3-5¢/mi. Don’t forget car washes! Now let’s say you’re super lucky and you drive a year full-time—that’s 100K miles—with no breakdowns at all and no fender benders. Did I mention insurance? 2/4

Remember, you’re driving all the risky times—rush hour, bar closing time—so your car is taking a beating. But let’s say NO extra repair costs. And let’s say your car is 2yo, 60k miles when you started. It’s now 3yo, 160k miles. Next year, it’ll be 4yo, 220k. What’s it worth? 3/4

More important, how much do you still owe? Hint: the avg Uber driver didn’t pay cash for his car. BTW Uber’s 1099 only reports miles w/pax in car. Unless you kept good records, you use that # for deductions. SE tax is 12.4% over regular fed tax. Uber economics are deadly. 4/4

May also have to do with payroll law. Hiring people >30 hours a week as W-2 employees adds up fast under Obamacare. Uber/Lyft drivers are 1099 which means they don't get benefits but don't have an employer complying with wage laws.