Rideshare and delivery driver profit: what is left after the car
What the app shows is revenue, not profit. To know what you keep, take out fuel, wear (tires, oil, maintenance and depreciation), car rental if any, and fixed costs such as insurance, registration and your phone plan.
The math
Fuel = miles ÷ mpg × price per gallon. Wear = miles × cost per mile. Profit = earnings − fuel − wear − rental − fixed costs − fees. Divide by hours for profit per hour, and by miles for profit per mile.
Example
A 40-hour week with $1,180 in earnings ($1,100 from the app and $80 in tips) and 700 miles in a 30 mpg car with gas at $3.30 spends $77 on fuel, $175 on wear and $60 on fixed costs. Profit is $868: $21.70 an hour, against $29.50 an hour shown by the app.
| Item | Week | Per mile |
|---|---|---|
| Earnings | $1,180.00 | $1.69 |
| Fuel | $77.00 | $0.11 |
| Wear | $175.00 | $0.25 |
| Fixed costs | $60.00 | $0.09 |
| Profit | $868.00 | $1.24 |
Taxes
Drivers are usually independent contractors and owe income and self-employment tax on net earnings. Many track business miles to deduct vehicle costs; the IRS standard mileage rate is one option. Set aside a share of every payout for taxes and check the rules with a tax professional.