But if your ride home is long enough that it costs 50 bucks in a cab, then how can ride-hailing drivers make any money by only charging 25 bucks? I’m wondering if these companies are relying to some extent on faulty cost accounting by vehicle owners, who may not be adding in the entire cost of ownership including depreciation, maintenance, and insurance costs. I haven’t looked at this in any detail but I’m wondering how these companies can beat cab prices by such a large amount.
That’s why they need to constantly advertise for new drivers.
If an Uber driver accounts for all their costs, then they make almost nothing. At least, that is what I saw doing volunteer work on taxes...
You raise a good point there. I suspect a lot of people who drive for companies like Uber actually earn a lot less money than they think. You hear more and more stories all the time from former Uber drivers who left the business because they figured out that it simply wasn’t worth their time, effort and wear & tear on their vehicles.
I think you’re spot on with that. There’s room to undercut the cabbies, but what we’re seeing seems to go beyond that. And people are bad at math.
cabs charge millions $ for the medallions, exclusively infringing on my right to travel