UberPOOL and Lyft Line are Less Money for the Drivers

The companies claim that carrying more passengers means more money for the drivers. They are lying. They don’t pay the drivers more when they have more passengers. It is obvious when you do the math.

Let’s say you pick up 2 people at the airport, both requesting UberPOOL, and taking them to the same hotel. You now get paid at the UberPOOL mileage and minute rate that is 10% less than the UberX rate. And any overlapping miles, you get paid for once even though you have 2 paying passengers. Let’s do the math (using San Diego rates):

Uber gets: ((5 miles x $1.00/mile) + (10 minutes * $0.13/minute)) x 2 = $12.60

Driver gets: ((5 miles x $1.00/mile) + (10 minutes * $0.13/minute)) x 75% = $4.73

The driver gets 38% in this case and the company gets 62%. Why is it so bad? Because mileage is where drivers get a majority of their pay. So by reducing the mileage, drivers get less. The passenger pays 10% less and the company gets more. The only loser is the driver.

Let’s do the math on the same drive for UberX just to twist the knife a little:

Uber gets: ((5 miles x $1.10/mile) + (10 minutes * $0.15/minute)) x 2 = $16.00

Drivers get: ((5 miles x $1.10/mile) + (10 minutes * $0.15/minute)) x 2 x 75% = $12.00

For the UberPOOL ride, Uber pockets $12.60 – $4.73 = $7.87. For the UberX 2 separate rides, Uber pockets $16.00 – $12.00 = $4.00. They have figured out a way for the drivers to do more work and make less money while the company makes more money.

And in case you think I found the one case where this happens, let me assure you, this always happens. There is no case where it is better financially for the driver to take UberPOOL than UberX. Overall I have been calculating that I get about 40% of the money when driving for POOL. After doing the math it makes complete sense.

The math and the case is exactly the same for Lyft Line:

This does not say that you should not take UberPOOL or Lyft Line rides. Just realize that you are getting less per mile and less per minute no matter what they claim and they are getting more. A lot more. The above case shows how I was paid less for taking 2 people on Line than I would have been paid for 1 on regular Lyft.

So the passenger pays less, the company gets more, who is losing? That would be the driver. As in you.

Do I pick up POOL and Line passengers? If I am concerned about my acceptance rate, yes. If not, no. It is amazing how my rating almost always goes down on days I pick up POOL and Line passengers. A double whammy for sure.

Should you? That is your call. Now you know the math.

Drive smarter!

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