Re:Adam Smith and Inequality (2014)
by Spooky23 on Monday September 13, 2021 @12:53PM
(#28513745)
Only about 25-30% of per-mile costs are fuel.
Depreciation is the biggest component, and that is driven by mileage. My recollection is that the GAO/IRS rates are based on midsize sedans.
Three years ago, the average Uber driver made about $0.80/mile according to survey data. You can argue that the costs vary from $0.50/mile and $0.70/mile, but either way the driver is pretty fucked and is selling their asset’s value as well as time. Rental car companies price dynamically based on fleet depreciation in near real-time… there’s a reason why Uber didn’t buy 10,000 Priuses.
The car is a sunk cost, but the mileage and wear and tear erodes the value of the asset.
Depreciation is the biggest component, and that is driven by mileage. My recollection is that the GAO/IRS rates are based on midsize sedans.
Three years ago, the average Uber driver made about $0.80/mile according to survey data. You can argue that the costs vary from $0.50/mile and $0.70/mile, but either way the driver is pretty fucked and is selling their asset’s value as well as time. Rental car companies price dynamically based on fleet depreciation in near real-time… there’s a reason why Uber didn’t buy 10,000 Priuses.
The car is a sunk cost, but the mileage and wear and tear erodes the value of the asset.