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by no_flags 2340 days ago
I don't think using the IRS mileage number is an accurate way to calculate costs of operating a vehicle for a couple reasons.

Consider this report from AAA: https://exchange.aaa.com/automotive/driving-costs/

Notice that the cost per mile actually goes down the more miles you drive! You have to drive 20,000 miles to get down the ballpark of the IRS number. This indicates that expenses affected by mileage like gas, maintenance, and depreciation are dominated by up front costs like insurance and taxes. Now consider that most door dash drivers already chose to have a car before working for door dash, so they will have to pay the up front costs regardless. For this reason, I don't think $0.58 per mile is a good estimate of the marginal cost associated with extra driving for door dash. The AAA report estimates gas and maintenance costs per mile at $0.17 to $0.23 depending on the type of car.

Second, I don't believe it is right to include depreciation in a household budget because it does not manifest as an additional cost on top of the price of the car. Unless the car is listed as a line item on your household budget, you don't have to account for any additional loss in value. Imagine that you bought a car in cash for $1000 and never drive it. You lose the $1000 immediately. If some years later the car is worth $0, your total cost of ownership is still just $1000, not $2000.

I believe the fact that people still chose to work for door dash is additional evidence that the estimated costs in this article are too high. We may not be perfect rational actors, but most of us can tell if our bank account is going up or down.

None of this excuses the unethical behavior of door dash, and personally I choose not to use them. I believe tips are intended as a gift to the driver, so it is misleading to call it a tip if the driver isn't getting it. That said, I didn't find this analysis convincing for the reasons above.