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Re: UBER - car service in Jersey City
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As an UberX driver, I just wanted to chime in on the whole question about tipping.

First, to explain the pay structure. Drivers receive 80% of the fare that you pay MINUS the $1 "Safe Riders Fee". In NJ the minimum fare is $5, so of that $5 Uber first takes $1, leaving $4. Then Uber's cut of that is 20%, leaving the driver with $3.20.

Since the drivers are using their own personal automobiles which they must pay to maintain along with the cost of gas, this eats into that $3.20. For simplicity's sake, let's say that ride was 2 miles. Using the IRS' standard per-mile rate of .56/mile (this takes into account gas, maintenance, and depreciation of the value of the car) subtract out $1.12 for the ride, and you are left with $2.08.

As Independent Contractors, we are responsible for paying tax on our earnings. At the end of the day, we're talking about approximately $1.50 is what a NJ driver will pocket on a $5 min fare.

It was mentioned in this thread a few times that car and driver quality seem to be on the decline. This is just a result of the decliniing profitability of driving.

This has all been brought about by several rounds of rate-cuts by Uber to increase ridership. Many drivers have simply stopped driving, however Uber is constantly onboarding new drivers and there is an almost endless supply of people willing to accept less.

To cut this short because it wasn't my intent to drone on and on... Uber as a cashless system is a really great way to do business. What drivers have been bugging Uber for is to add the ability to tip into the app so that there would be no worry about having cash on hand. Uber simply refuses to do this.

Most passengers do not tip. This is how Uber sold the service as "tip included", but this started back when rates were reasonable enough that drivers were reasonably compensated.

For anyone worried about whether to tip some percentage, I offer this. I would be ecstatic if even 10% of my passengers threw me a buck or two. Especially when I'm loading luggage into and out of the car, opening doors, keeping my car extremely well maintained, keeping chargers on hand for all types of phones, etc...

It seems like everyone pretty much agrees that the level of service is superior to most taxicab experiences and at a cost that is significantly less. I will continue to offer this superior service, with a smile, regardless of whether my passengers tip or not. Until it is no longer profitable to do so.

Posted on: 2015/1/28 9:29
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