Uber Driver Pay Confusion On Investment Sites And By Many Uber Drivers

This confusion is due to two things:

1) Uber driver income must be estimated from calculating Uber driver gross income PER HOUR not PER RIDE.

PER HOUR, not PER RIDE!
PER HOUR, not PER RIDE!
PER HOUR, not PER RIDE!

Why is this so difficult to understand?

2) Using the IRS mileage deduction to estimate Uber driver costs is just plain WRONG because it includes average FIXED costs, not just VARIABLE costs.

Uber drivers use their PERSONAL vehicles to pick up passengers to make a living.

They have vehicle costs they must pay WHETHER OR NOT they drive for Uber. The INCREMENTAL costs of driving for Uber over and above those incurred if NOT driving for Uber are the correct costs to use.

Why is this so difficult to understand?

The model I published in my October 2015 SA article provided the framework to use varying LOGICAL and REASONABLE input values to calculate varying Uber driver income estimates.

Wickerman20, a frequent commenter on TAXI on Seeking Alpha and the Yahoo Finance Message Board had the intelligence and civility to discuss the model and reasonable input values in an extensive discussion in the comments with me about the less complex cases of Chicago and Boston, but especially the much, much more complex model and input values needed for New York.

I’ve had similarly substantive discussions with others in addition that are not documented on message boards.

NO ONE has suggested a model or input values that arrive at Uber driver incomes lower than medallion taxi drivers.

Intelligent analysis of alternatives also can not prove ANY sensible estimates calculating Uber Driver Income After Deducting Incremental Costs anywhere near minimum wage.

 

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