As of the time of this post the delivery fare is $4 a pick up + $2 a mile (Less Uber’s hefty 25% service fee) in Orange County California.
Let’s see how it all breaks down and if it is worth it at this pay rate with no tips.
I’ll be using my car as an example but you can use the same formula for your vehicle.
My car is a 2008 Scion TC. For those that don’t know, it is a small 4 cylinder car. To be fair I’ll only be using city mpg’s so some freeway driving might decrease the end result a bit.
2008 Scion TC
23 City mpg
Current gas price is $2.40 a gallon for 89 octane in Orange County
So we take the city mpg and divide it by the price per gallon to find out our actual cost per mile.
23 mpg / $2.40 a gallon = $0.11 per mile rounded up.
Now you have your average cost per mile so let’s apply those results to a mock delivery.
The delivery is 5 miles away from the pick up location. Uber pays $4 a Pick Up + $2 a mile – %25 service fee.
How much will you make from this delivery?
Multiply the mileage rate by the amount of miles
$2 x 5 mi. = $10
Now Add the flat rate of $4
$10 + $4 = $14 gross
$14 is what we made but now we need to start with deductions to find the actual net
Now we have to subtract Ubers 25%
$14 – 25% = 10.50
It costs us $0.11 a mile to deliver
$0.11 x 5 mi. = $0.55
Now we subtract that from our gross to come up with
$10.50 – $0.55 = $9,95 net
So we take home $9.95 for a 5 mile delivery.
This isn’t bad at all assuming you can do at least 2 deliveries per hour. Even better if you have a multiple pick up and drop off from the same source.
Because of the fact that Uber Eats is a curbside service, that eliminates the need to park and get out at your delivery location which can easily eat up a half hour at an apartment complex. This gives you more time to complete more deliveries per hour.
As for tips, I would like to see the option for a customer to give a tip for receiving exceptional service but because of the possibility to make more deliveries per hour this might not be an issue but any extra money helps. I’m sure most of us can agree on that.
Uber Eats vs Uber X. To me it’s a no brainer. You really won’t be putting a lot of mileage on your car. Deliveries are all local. With Uber X you drive all over and that really puts on miles and does a lot of damage to your vehicle. You get paid for those miles but in my opinion it just isn’t worth it because the maintenance will start coming faster than you think which will start eating into your profits. Not to mention having strangers in a car that isn’t theirs. They don’t care if they have dirty shoes or not. They don’t care if they scratch your side panels and doors getting in and out. There are countless reasons I could name but the most important is the miles and wear and tear. Unless you are going at Uberx full time and making $5000 a month then you really can’t afford a throw away car. And if you have a new car and are using it for Uber X and making your minimun monthly payment then you will lose big time when you try to get rid of your car. The best advice I can give to passenger drivers is to buy a brand new car expecting to get rid of it in a year or 2. This only works if you pay more that your minimum monthly payment, probably triple your payment. That way you can trade the car in and not be upside down. Only then are you not stuck with a car in need of major maintenance with 100,000 miles. That’s the closest you will get to breaking even and avoiding big maintenance fees.
So far it looks really appealing, I have some vacation time from my job so I’m going to be taking a week off and deliver full time for a week to see how it goes. I’ll have a lot more information to share at that time so stay with me.