Uber vs Taxi

Discussion in 'Melbourne | Uber Drivers Forum' started by WhizMuncher, Oct 14, 2017.

  1. Hi, I've been driving taxis for a few months, considering Uber going forward.

    From what I can see and please point out where I'm wrong - is that you not only take on more risk with Uber, but it's perhaps even the worse financial decision - almost like Uber is banking on you not doing even as hasty analysis as this.

    I've based these calculations on rates that people quote in the forums here.
    L5S and Uberx zoom like this.
  2. DriverX

    DriverX Active Member

    Driving for Uber you will be clearing about $10-12 per hour after you account for all car expenses and fast depreciation, that's on a good day!

    Uber offers the flexibility of working your own hours, whenever, but this is where it all ends, its mostly down from there.

    Check out this video. It's from the USA but but the situation here in Oz (except perhaps for NSW) is preety much the same:
    KawanaPete likes this.
  3. river view

    river view Member

    Based on my experience operating Uber X for 6 months in Sydney

    Rego and insurance $2K PA
    Depreciation over 3 years $7K PA leaves $8K value in the vehicle with 180Km on the clock
    Maintenance incl tyres $2.5 K PA
    Total $11.5K PA

    Approximately 1200Km driven each week or 60000 KM PA for full time driver
    Based on your example I see $2.7 fuel costs which I estimate to be equivalent to a 27Km journey that takes 35 minutes
    Annual Cost per Km = Total above/60000 = 20 cents per Km
    Fuel for Journey based on 10lt/100Km and $1.3 per litre = 13 cents per Km
    Total Vehicle running costs for Journey $8.91

    Uber fare estimate is $53
    Less vehicle running costs for Journey ($8.91)
    10% GST ((53-8.91)/11) is $4.01

    Return to Uber X driver is $40.08 - within approximately 10% of your figures but including GST and insurance for Uber.

    I was influenced by the flexibility of driving for Uber and never considered driving a taxi. Could you tell me a little more about the taxi figures provided by you?
    * You have made a point about insurance but after insurance and driver payment there appears to be only $2 left for the taxi owner/company.
    * Is GST taken up in the example provided? Who pays?
    * Is the example is of a taxi driver? If so, does the driver pay any costs to operate the vehicle?
    * Is the driver an employee of the taxi owner and therefore entitled to other benefits?
    * Are you really considering Uber?

    Uberx zoom likes this.
  4. Uberx zoom

    Uberx zoom Well known member (founder)

    Note for newbie drivers/readers: Uber base rates in Sydney are approx. 50% better then most other major cities in Australia.
    Cold Gin likes this.
  5. river view

    river view Member

    Hi UZ,
    I should have said the vehicle costings are based on my circumstances but I believe these costs would hold up for other drivers of fuel efficient Uber X vehicles anywhere in Australia. It's a car with insurance, needing tyres and maintenance, etc. The job costings were extrapolated from the example provided by wizmuncher taxi driver.
    I would really like to hear back from wizmuncher since I had a few questions.

    Uberx zoom and Nill like this.
  6. Yes, but there's a lot of work. Cheapskates are everywhere.
    DriverX likes this.

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