No Mo Uber in Minneapolis
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Lyft and Uber said they will cease operations in Minneapolis after the city’s council voted Thursday to override a mayoral veto and require that ride-hailing services increase driver wages to the equivalent of the local minimum wage of $15.57 an hour.
Lyft called the ordinance “deeply flawed,” saying in a statement that it supports a minimum earning standard for drivers but not the one passed by the council.
“It should be done in an honest way that keeps the service affordable for riders,” Lyft said. “This ordinance makes our operations unsustainable, and as a result, we are shutting down operations in Minneapolis when the law takes effect on May 1.”
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Insert shocked face.
If you tell a business what to charge, and it costs too much for the customer, the business will stop. Very simple.
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How much do taxi drivers typically earn?
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Having known somebody who drove Uber to try and supplement their retirement income, I was left with the distinct impression that the drivers were getting royally fucked by Uber.
If you Google 'average Uber salary', it looks like they're making this much already, which also begs a few questions.
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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.
