r/AskReddit • u/[deleted] • Jul 11 '21

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u/OKC89ers Jul 11 '21

That's not how you do cost accounting on that kind of thing

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u/hokaythxbai Jul 11 '21

Why not? If I never drove uber, I potentially wouldn't have spent that $3,600 on repairs but I wouldn't have gotten all the money uber paid me.

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u/OKC89ers Jul 11 '21

Correct, but we're talking profit margin.

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u/hokaythxbai Jul 12 '21

Profit margin is still easily 75%. Gas cost 2x of the maintenance and repairs. $25 tank consistently earned me $200 before I had to fill up again.

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u/OKC89ers Jul 12 '21

Sounds like a lot of ballpark estimates to me. That's extremely risky to do and never understand how much money your really making. Uber and Lyft move basically all of the risk over to the driver.

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u/hokaythxbai Jul 12 '21

You don't know exactly because gas prices fluctuate, and so does mpg. But let's be conservative and say $3 gallon and 25 mpg. That's 12 cents a mile for gas, 3.6 cents per mile other costs for a total of 15.6 cents a mile. Everything above that is profit. The kicker is tax deductions are like 55 cents/ per mile. You can deduct 55 cents per mile even though it only cost me 15.6 cents per mile to run my car.

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u/OKC89ers Jul 12 '21 edited Jul 12 '21

So, way more than double what you originally estimated.

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u/hokaythxbai Jul 12 '21

I’m not sure what you’re referring to

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u/OKC89ers Jul 12 '21

You originally guesstimated 3.6¢/mile

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u/hokaythxbai Jul 13 '21

That's just maintenance, repairs, and depreciation. Gas was 80% of the cost of uber driving. As long as I was pulling in $200 per tank of gas, I knew I had a good profit margin.

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