It’s the mileage. Karla drove 24,380 for her business last year. She has a larger vehicle, So that was basically 1000 gallons of gas. Or $3200. We also spend roughy $2200 fluid and filter changes and such and average $1200 or so for new tires/brakes per year. Actual vehicle expenses are around $6600. The federal mileage standard allowance is 67 cents, or $16,750. Guess which we take?
Uber drivers typically drive 60K miles or more. Their standard deduction is ~ $40K. The number one car choice? Fusion Hybrid. Actual fuel costs on 60K miles ~ $4500. As for maintenance? Probably about what we spend (less expensive tires, and there are specially negotiated rates at different businesses and such).
So these guys make $60K per year, but after you take out the standard deduction, it looks like they only made $30K, less than minimum wage.