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In Raleigh, the base fare for Uber is $1.55 plus 20 cents per minute and $1.20 per mile. An additional $1 "safe rides fee" is also added to the fare.
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Plugging in the 500,000 miles I've driven since becoming a licensed driver, that would put me at about $600k just for transportation over my short life, absent any Safe Rides Fees or base fares. What I've spent on vehicles, insurance, maintenance, AND fuel doesn't even begin to approach that number.
It just doesn't work for me. It would make financial sense for someone whose alternative is paying high fixed fees (car payment, insurance, registration) for a car they barely drive.
I got a quote from Uber last night to get my spouse home from the airport, and it was $82. I went and picked him up myself for $10 worth of gas.
Hemlock140 is spot on in describing me. While not technically a millennial, I lived in Queens, NY for 16 years after college. The only time I had a car was when I wanted to get a first car. That only lasted 6 weeks due to it being total at the corner from street parking. I didn't need a car so that was it. I later moved to rural Maine with my wife. I was 37 and we bought our first new car. For me, being frugal was the sole reason for me to not own a car in NYC.
I live in a very rural area where cars are necessary for basics food doctors etc. so I own 2 old chevy to get around with. Not gonna buy anything newer and waste money.
That first paragraph though, I have no idea why this keeps coming up, you are not losing money in the time you are commuting unless you are actually forgoing pay. Most people are not paid for that time regardless of what they are doing.
It's called an opportunity cost in economics. It is real, your commute to work is time that you've dedicated to working, that you are not paid for. The longer your commute the more hours you spend "at work", thus relatively the lower your salary, a typical 45 minute commute over a 5 day work week is 30 more hours a month.
You live a ways from the airport. My airport runs are under $15. You can't blame UBER for your location.
In order to spend that $10 on gas, you first had to own the car and pay for insurance and repairs. Factor in those costs.
By your rationale, the Uber driver didn’t factor owning the car, insurance, and repairs into his $15 rate and is actually losing money as an Uber driver.
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In Raleigh, the base fare for Uber is $1.55 plus 20 cents per minute and $1.20 per mile. An additional $1 "safe rides fee" is also added to the fare.
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Plugging in the 500,000 miles I've driven since becoming a licensed driver, that would put me at about $600k just for transportation over my short life, absent any Safe Rides Fees or base fares. What I've spent on vehicles, insurance, maintenance, AND fuel doesn't even begin to approach that number.
It just doesn't work for me. It would make financial sense for someone whose alternative is paying high fixed fees (car payment, insurance, registration) for a car they barely drive.
Sure. IF the cost of owning surpasses the cost of ride sharing. Otherwise you’re paying more to not have a vehicle. The article is nothing more than touting ridesharing and how great it is for the masses. Well....like everything else it may work for some but not others.
Quote:
Originally Posted by Gungnir
It's called an opportunity cost in economics. It is real, your commute to work is time that you've dedicated to working, that you are not paid for. The longer your commute the more hours you spend "at work", thus relatively the lower your salary, a typical 45 minute commute over a 5 day work week is 30 more hours a month.
And you don’t have to take the job. Or you can move closer if that commute time is too much. Unfortunately most people do not live near their work. For whatever reason.
The chances of a person actually adjusting their location to convert what is current commute time for paid labor time is really minor. They would do it to have more “free personal time” but not to actually “work time”
By your rationale, the Uber driver didn’t factor owning the car, insurance, and repairs into his $15 rate and is actually losing money as an Uber driver.
Drivers don't set their rates. UBER does. Many drivers lose money.
And you don’t have to take the job. Or you can move closer if that commute time is too much. Unfortunately most people do not live near their work. For whatever reason.
The chances of a person actually adjusting their location to convert what is current commute time for paid labor time is really minor. They would do it to have more “free personal time” but not to actually “work time”
Still an opportunity cost, even though the overall cost is lower than not taking that job. Which is why it shouldn't be ignored.
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