Driver Explains Why People Drive Even When They're Losing Money
This answer is by Dave Whittle. View it below or on the website directly.
Some general observations on your question before I answer it:
Most drivers don't really know whether they're losing money with Uber or making money. Most believe they're making money because they can see the deposits in the bank but they can't see the depreciation on their car or the repair bills that they haven't had to pay yet.
The day of reckoning for depreciation and repairs and new tires will come someday. That's when a lot of drivers stop driving, because they've spent the deposits and now can't afford the day-of-reckoning cost hit.
The nicer and more expensive your car, the higher your costs as a driver and the more likely it is you're losing money unless you're consistently getting a lot of SELECT or LUX SUV or BLACK rides.
If you're driving a $2,000 car that barely meets Uber's qualifications and doesn't have much value to lose to depreciation, you're making more money than someone who has an expensive car - but very few people make what Uber or Lyft claim you can make per hour. Supply and demand sees to that.
So with those points in mind, consider my answer to your question of why if drivers are losing money, they keep driving:
They think they're making more money than they really are and aren't even aware that they're losing money. They pay close attention to the deposits in their bank account but not much attention to their costs.
Some are willing to trade the value of their vehicle for cash in order to meet short-term needs. These short-term needs can take many forms, such as medical bills, rent, some big bill that just arose, or even food. Uber/Lyft absolutely lets them do that.
Some are getting intangible benefits from driving, such as social validation or psychic rewards.
Some find driving to be almost like a game or form of entertainment, learning how to maximize income, finding better rides, mastering surges (haha), and so on.
In fact, many drivers are being manipulated by Uber without knowing it. Uber uses very sophisticated psychological technigues to motivate drivers to do what's in Uber's best interests, whether or not it's in the drivers' best interests.
In other words, there are many reasons drivers keep driving for Uber or Lyft even though they're not making as much money as they thought they would.
View the answer here
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