Friday, August 22, 2014

The Iceland two

Last weekend,  it was kind of cool. My first repeat ride was two of the interns from Iceland who rode with me a few weeks ago.

Posting has been light

Travel, family and work have cut into the driving time. I have been saving up some topics for future posts.

Tuesday, July 22, 2014

Heart Palpitation

I popped on line for a while today to check out my new telecomm configuration - still a few bugs there.

I got a hail from Doctors Hospital - quite a ways away. Usually there is an Uberx driver in that area. However, this was meant to be. I picked up a young man who had been sent for to the emergency room in an ambulance with heart palpitations and high blood pressure. It turns out they prescribed the same generic medication I take for may heart palpitations. We had similar experience with palpitations.  I shared my experience with 30 years on this class of medication (beta blocker) and several years with this particular medication. This young man went from fearful and uncertain to facing the his future with much more confidence.

Priceless.

Insurance is fixed!

Uber has just announced an update to its insurance program that addresses every concern I had.

1. The insurance is active from when I accept a ride until I end the ride.
2. It is primary when it is in effect. If I have an accident when it is in effect, I do not have to first submit a claim to my company.

This is better than I had expected Uber to do on its own - I thought the insurance industry would have to do more.

Assuming implementation is good, Uber has done everything it can in the insurance area.

I think this will expand the pool of part time drivers.

Good on you - Uber!


Sunday, July 13, 2014

The Iceland three

The fun part about driving for Uberx is meeting the people. Last week I had the privilege of driving a significant proportion of the citizens of Iceland. Three young people in the area for extended internships.

While not all fares are talkative, the ones who are are fun.

Later, I drove a young lady whose parents were clearly doing well here yet wanted to return to Eritrea when they retire.

So, how much am I making per hour?

Realize that every driver is going to be a little bit different. I am more focused on enjoying myself than making money. That effects how productive I am per hour. I hang out in areas where there are fewer fares. I take a couple of minutes between fares to make sure I am ready for the next fare. I probably drive more between fares than the typical Uberx driver.I am a part time driver with a full time day job.

So, with that caveat in mind and including the Samsung Note 3 and related T-Mobile plan I purchased to provide GPS, I have from an IRS perspective, lost money driving for Uberx. If I just include the $0.56/mile IRS mileage expense deduction, I am making $7/hour. That deduction covers everything related to the vehicle including the the insurance.

The details matter.

I charge off $0.56 per mile driven while driving. This includes miles in which I am not online. For example, I may be returning from a fare, on an expressway, and in and unfamiliar area so I don't want to get ride requests. So I go offline. The miles driven per fare has a significant impact on the hourly rate. Drivers making their living with Uberx are probably much more efficient with their miles.

The $0.56/mile probably includes about $0.31 variable expense - mostly gas and roughly $0.25/mile capital expense. That variable expense also includes things like the $50 I paid to replace a tire after hitting a particularly nasty pothole. I seem to be running 15-18 MPG overall. At $3.80/gallon, that is about $0.24/mile for just gas. The variable expense also includes all vehicle maintenance.

The $0.25/mile capital expense is a deduction without a corresponding out of pocket expense. I am going to own the car anyway. All driving for Uberx does is, possibly, shorten how long I will own it. If I take that out of the expense calculation and only include $0.31/mile operating expense, then my hourly net jumps to almost $11/hour.  This looks better for leisurely,  part time drivers like me. But only as long as it is fun.

The other thing to consider is what if I were a more efficient driver? For example, if I used 5% fewer miles for the fares I generate, that improves the net by about $0.25/hour. If I generate 10% more fares per hour, then that improves the net to about $12.50/hour.

According to the Uber report I receive each week, my fares/hour consistently rank about 20% below the top drivers. So, if I were a top driver and if I was 5% more efficient with mileage then I would be making  net $14.25/hour use the operating expense model ($0.31/mile)  and about $10.55/hour using the total mileage expense model ($0.56/mile).

Uberx drivers are independent contractors, so they have additional tax consequences that are beyond the scope of this post.

Saturday, July 5, 2014

Some people loath DC taxis.

Obviously, as an Uberx driver, I get a lot of pro Uber and anti taxi riders.

One rider last night was passionate in his loathing for DC taxis. He said we would like to have every person of color in DC use Uberx. He had a number of stories about taxis ignoring him on the street or not making pickups. This an emotional tirade from a man who was otherwise having a good day.

Last week I had a wonderful lady as a rider who was not emotionally but very calmly laid out all the reasons she was a committed Uberx user. They were similar to the gentleman's comments. One point she made was even Uber taxi was less reliable than Uberx. I had thought taxis could get a lot of the advantages of the Uber business model by enrolling in Uber taxi. Apparently, they still have too many bad customer service habits.

Just like I don't get the anti Uber riders, DC taxis do not get feedback from the many people who have voted with their feet. So my overall insight is limited.

That said, I am an older white guy giving rides in East DC performing cashless transactions - Uber takes the cash out of the ride. I wonder if taxis drivers carrying a fair amount of cash have more to fear.

My riders who use taxis and Uberx generally say the taxi drivers complaining about Uberx just don't get it. People use Uberx because it is a guaranteed ride that will stop, wait and even call to make a smooth pickup.

Not every ride has a discussion about Uberx.Many do. People seem to be interested why I am doing this part time.

Uberx - what's going on in Virginia?

It is well reported in the news that Virginia has issued a cease and desist letter to Uber. In addition, as June 27, five Uberx drivers had been cited in Arlington for operating without a license. All of these citations were issued to drivers who were violating other traffic laws.

In the WaPo article here: A spokesman for Uber said the company “will pay any unjust citations.”

I assume this refers to the operating without a license citations, not the related traffic citations.

As nearly as I can tell, most pickups involve a violation of traffic laws. It is apparently illegal to stop on a roadway, turn on  your flashers and wait for your rider. I usually try to find a place to pull off. It usually means I'm in front of a hydrant, and allay/driveway or in a bus loading zone. It is not clear to me if being in an attended vehicle in one of these situations could lead to a citation.

Drop-offs are more straightforward. It appears to be OK to stop in the roadway to unload riders.

I could not find directly related regulations in the Code of Virginia.

Uber directs us to obey the law. They do not provide guidance as to what the law is in the various jurisdictions here in the DC area.

Where is my rider? Should I call?

The Uber FAQ has a section on "How can I be sure of my client's pickup location?".

Bottom line, the advice in this FAQ is just wrong.

The biggest error is this statement: "Zoom in on the map to find the black rider icon. The feet of the rider icon are always exactly where your client placed their request, regardless of the address shown."  It is simply not true. In fact, it is wrong than it it is right. This problem seems to be getting worse. Yesterday, on July 4th, some errors were over a block off. Uber frequently gets the wrong side of street even on major street.

This advice is simply not workable: "If the requested location is not clear, or is not accessible, call your client to coordinate a quick pickup. Try not to call unless you have to though." Uber, in other places in the their training discourages calling the client. The application is simply not mature enough. For example, the rider is not given the color of the Uberx driver's car (they all not all black any more). The driver does not know if the rider is waiting on the street or is six floors up in the building still getting ready to go out.

After a miserable 4th of July trying to locate riders, I call every time when I get close. I have also suggested some improvements to the app to improve pickup coordination.


Nellie the seeing eye dog

Of course, Uber supports service animals and makes it clear to drivers this is the case.

Last week I had the privilege of giving a ride to a group which included Nellie - a very well behaved black lab. Nothing to report on the trip other than a conversation about doggie booties when we passed a golden retriever wearing them. The consensus was they were probably a good idea when the sun is baking the concrete or asphalt.