[vitd]

Am I misunderstanding, or did the article gloss over the cost of keeping up your car as a driver? They talk about how renting a cab costs a certain amount up-front, plus insurance, plus some other stuff. Then they sort of hand-wave that an Uber driver also has those costs. I don't doubt that the rental fees are expensive, but it seems an unfair comparison when the rental fees pay for maintenance of the car, and they don't include maintenance that Uber drivers have to do. And I don't know of any jurisdictions in the US where you don't need insurance to drive.

I also found it interesting that the rental fees include a 30 cent parking-violation fee. At my office we had a problem with Uber who were constantly parking illegally in front of our building. So they're getting the benefit of illegal parking without paying the (admittedly small) fee that cabbies have to pay. Of course it costs less! Especially if you don't count keeping up your car and the community!

[autarch]

Well, you can factor in car maintenance to your costs as a driver. Given that the drivers would probably own a car regardless (because they need it for other things) the additional wear and tear is almost certainly more than compensated for with the extra income.

Also, if this is self-employment (which it sounds like it is) then the drivers can deduct $0.56 per mile they drive from their taxes.

As for a violation fee, I assume that for cabbies that's to cover the cost of tickets they get, not that it exempts them from receiving them. With Uber, you can judge the risk yourself. Presumably, just like with a taxi, it makes sense to accept an occasional ticket as the cost of doing business.

Overall, it seems like it's economically reasonable to be an Uber driver.

The big difference between Uber and a cab is that the existing regulatory regimes in many cities allow the cab company owners to extract most of the value from their drivers.

[objclxt]

> Also, if this is self-employment (which it sounds like it is) then the drivers can deduct $0.56 per mile they drive from their taxes.

You deduct it from your reported income, not your taxes. This is a fairly important distinction, although it is still a useful benefit.

[rb2k_]

> I don't know of any jurisdictions in the US where you don't need insurance to drive

Only semi on topic, but via [0]:

New Hampshire and Virginia do not require motor vehicle insurance. In New Hampshire vehicle owners must satisfy a personal responsibility requirement; instead of paying monthly premiums, and prove that they are capable of paying in case of an accident. In Virginia vehicle owners may pay an uninsured motorist fee. In Mississippi vehicle owners may post bonds or cash.

[0] http://en.wikipedia.org/wiki/Vehicle_insurance_in_the_United...

[vitd]

Interesting! I had no idea. Thanks for the info!

[cpwright]

If Uber drivers were constantly parking illegally in front of your building, it seems that there is not only a problem with Uber, but with your city's parking enforcement. If they are truly illegally parked, nailing them would seem like an easy way for traffic officers to run up their quota.

[jtbigwoo]

The article did seem oddly biased. It talks only about revenue for the Uber driver and only about costs for the traditional cab drivers. Some costs would be difficult for their driver to figure out (like depreciation), but couldn't they have asked about gas?