So I came across an article that said that an individual lost money driving for Uber.
First, it is true that Uber/Lyft became less profitable over the years due to competition.
Second, Uber has played games with the payment to drivers to control costs. And yes, sometimes, it is confusing and one can easily be duped.
I do feel sorry for the person who lost money. But let’s be more realistic…you have to be smart and do your due diligence and craft your profit maximization strategy.
And you have to also know why people drive Uber.
Most Uber drivers do it because they need the extra cash. So it is a temporary thing. Of course, Uber is making it harder to control your time but still most do it as a supplementary income.
I love talking to Uber drivers and the number one reason they do it is for the extra income. One person bought a condo for rental income and he was Ubering to pay off his mortgage faster. One old lady was doing it to save money for a trip. And so on- So most Uber drivers do it for the extra cash that they need not for a living.
Now, in terms of losing money, I feel bad that the person lost money but one needs to be smart. You can start your own business and lose money and go bankrupt. Yeah, it happens all the time. You need to be smart and do your due diligence and maximize your profit.
So here are some case studies of brilliant Uber drivers-
- This driver realized that Uber was playing games. And he stopped driving until Uber begged him to come back with super high surcharges. So he would do small drives just to keep Uber happy. And then he would just take the profitable rides. He made about $1,000 a week. Yes, it was hard. He usually picked up rich drunk people and he lost sleep. But he was happy making $1,000 a week.
- This Uber veteran did only long rides from LAX to somewhere far. He was smart. He actually beat Uber because he analyzed when super long rides are more likely to occur. So he would only work on the days that he would likely to get long rides. Once, he drove someone from LAX to all the way to somewhere remote in the inland empire and he made $300. He had to drive another traveler to somewhere extremely far during rush hour and he made $300+. So this driver only worked 2-3 days a week for Uber and he said that was enough.
- My friend worked only on Friday and Saturday nights to pick up drunk people from LA Downtown and Hollywood. They were loud and really drunk. But the rides were profitable. She said the competition was harsh but still made $200-$300 extra on the weekends alone. And sometimes they would tip her and that was also good. She stopped driving for Uber later because it was not as profitable. However, she has earned enough to pay off a big chunk of her credit card debt.
Finally, in terms of maintenance, I had a student who drove for Uber for many years. He knew maintenance was a big cost. So he learned to fix cars. He basically maintained his car. Also, he memorized all the bad roads and avoided those roads to save his car. He admitted that making money on Uber has gotten harder over the years but he did say that he loved the flexibility. Also, if you can avoid bad roads and can fix your own car then the money is still not bad.
So the whole point of this post? You can lose money by driving for Uber but if you do your due diligence and craft your own profit maximization strategy you can still make money. And the flexibility is great.
Thank You Jesus for another blessed day. Let us always be thankful and give You all the glory Amen-
Rejoice at all times. Pray without ceasing. Give thanks in every circumstance, for this is God’s will for you in Christ Jesus.
1 Thessalonians 5: 16-18
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