[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.