Uber driving for extra income in retirement.

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Bustoff
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Uber driving for extra income in retirement.

Post by Bustoff »

I'm retired and thinking about becoming an Uber driver in my spare time. On the other hand, I don't want to get beat up for a few extra bucks.
Would be interested in hearing from anyone who has tried this.
Spirit Rider
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Re: Uber driving for extra income in retirement.

Post by Spirit Rider »

Is this the south side of Chicago, IL or Provo, UT. Like many things it life it is, location, Location, LOCATION.
etarini
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Re: Uber driving for extra income in retirement.

Post by etarini »

I don't know anyone who's done this, but there was a recent article in AARP announcing a partnership with Uber that you may or may not have already seen:

" Life Reimagined, a wholly owned non-profit subsidiary of AARP, today announced a unique collaboration with Uber to provide flexible opportunities for Life Reimagined’s members to earn income as Uber driver-partners. Life Reimagined is a one-of-a-kind online and live experience aimed at guiding millions of Americans through their life transitions by helping them discover new possibilities and connecting them with a community of people pursuing similar passions and goals."

"The relationship between Life Reimagined and Uber will offer millions of people the opportunity to learn more about the sharing economy and earn additional income as driver-partners on the Uber platform, in a way that is economically meaningful, socially engaging and highly flexible."

http://www.aarp.org/about-aarp/press-ce ... -uber.html

Eric
joebh
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Re: Uber driving for extra income in retirement.

Post by joebh »

I know a few (non-retirees) who are Uber drivers.

All have been happy with the arrangement.
None have gotten beaten up.

This might help: http://www.pbs.org/newshour/making-sens ... er-driver/
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Bustoff
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Re: Uber driving for extra income in retirement.

Post by Bustoff »

Eric and joebh - thank you for the info and links!
FullYellowJacket
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Re: Uber driving for extra income in retirement.

Post by FullYellowJacket »

A lot of drivers I have talked to have said that they prefer Lyft over Uber, but then again I generally use Lyft.
corysold
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Re: Uber driving for extra income in retirement.

Post by corysold »

How much extra money are you looking for?

is there something about Uber specifically, or just ways to earn a little extra income?
Hypersion
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Re: Uber driving for extra income in retirement.

Post by Hypersion »

Don't forget to include all expenses when figuring out how much money are you actually making. Maintenance, insurance, repairs not just gasoline.
SouthernCPA
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Re: Uber driving for extra income in retirement.

Post by SouthernCPA »

Make sure your auto insurance won't deny coverage in the event of an accident. I know an attorney who practices in the insurance industry and this is specifically a concern right now with Uber drivers. Issues surrounding when you are actually on the clock, when you're not, what qualifies as commercial use time vs personal use time for insurance.
drawpoker
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Re: Uber driving for extra income in retirement.

Post by drawpoker »

Hypersion wrote:Don't forget to include all expenses when figuring out how much money are you actually making. Maintenance, insurance, repairs not just gasoline.
You forgot the cosmetics. Money to be expended keeping the car washed and shiny; cleaning the interior to keep it spotless constantly will become a burden (if you aren't accustomed to doing that regularly now)

Not to mention the extra work of having a drunk throw up on the seat. Or a mother who brings along a baby with a leaky diaper.

Even If you a post a prominent "No Smoking" sign, are you prepared to deal with the numerous axholes who will defy you and light a cigarette anyway?

Gotta be easier ways to make a little extra $$$ in retirement than this.
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Bustoff
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Re: Uber driving for extra income in retirement.

Post by Bustoff »

SouthernCPA wrote:Make sure your auto insurance won't deny coverage in the event of an accident.
My insurance company advised there is no coverage in effect when using my vehicle as an Uber driver.
However, Uber holds a commercial insurance policy with $1 million of coverage per incident. Drivers’ liability to third parties is covered from the moment a driver accepts a trip to its conclusion.
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Bustoff
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Re: Uber driving for extra income in retirement.

Post by Bustoff »

drawpoker wrote: Not to mention the extra work of having a drunk throw up on the seat. Or a mother who brings along a baby with a leaky diaper.

Even If you a post a prominent "No Smoking" sign, are you prepared to deal with the numerous axholes who will defy you and light a cigarette anyway?

Gotta be easier ways to make a little extra $$$ in retirement than this.
Interesting points. Actually, more distressing than interesting. :shock:
white_water
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Re: Uber driving for extra income in retirement.

Post by white_water »

Sounds like a lot of liability for not much return.
$1 million isn't a lot of coverage in an accident with multiple claims.
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wilpat
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Re: Uber driving for extra income in retirement.

Post by wilpat »

I drive for Uber and enjoy it very much! It gets me out of the house and I meet new people which I like.
I only work a couple of hours a day and rarely after 5:00PM.
I am 76 years old and am in relatively good health.
Contrary to the belief of many, profit is not a four letter word!
IowaFarmBoy
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Re: Uber driving for extra income in retirement.

Post by IowaFarmBoy »

Bustoff wrote:
SouthernCPA wrote:Make sure your auto insurance won't deny coverage in the event of an accident.
My insurance company advised there is no coverage in effect when using my vehicle as an Uber driver.
However, Uber holds a commercial insurance policy with $1 million of coverage per incident. Drivers’ liability to third parties is covered from the moment a driver accepts a trip to its conclusion.
You're right about Uber covering you once you are en route. However,historically there has been a gap in coverage between when you turn on the app and you accept a fare. Your personal auto policy understandably doesn't want to cover you during this time and Uber didn't cover that in the past. They now cover liability at limits of $50k per person, $100k per accident and $25k for property damage liability losses during this time but this is excess coverage for losses not covered by your personal policy. Those limits are dangerously low in my opinion. Additionally, they don't appear to cover damage to your vehicle if you are at fault.

I'd recommend visiting with your insurance agent/company about ride sharing coverage that will cover you adequately during these gaps.
denovo
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Re: Uber driving for extra income in retirement.

Post by denovo »

white_water wrote:Sounds like a lot of liability for not much return.
$1 million isn't a lot of coverage in an accident with multiple claims.

How many accidents do you know of that have caused more than one million in damage? Give me a percent.
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Jack FFR1846
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Re: Uber driving for extra income in retirement.

Post by Jack FFR1846 »

Absolutely visit your insurance agent. My policy seemed to have half of its pages dedicated to how I am not covered at all if I drive for someone like Uber. I would be concerned that something happens while not driving for Uber and the insurance finds that I was one of their drivers and denies all coverage. How is my umbrella affected? I have heard that commercial coverage is significantly higher, but if I were to drive for one of these places, I'd look into having proper coverage first.
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yYcMJvc
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Re: Uber driving for extra income in retirement.

Post by yYcMJvc »

Bustoff wrote:My insurance company advised there is no coverage in effect when using my vehicle as an Uber driver.
However, Uber holds a commercial insurance policy with $1 million of coverage per incident. Drivers’ liability to third parties is covered from the moment a driver accepts a trip to its conclusion.
Insurance is important. Liability but not collision, comprehensive, or medical? I trust my insurance company to represent my best interests, and I know what it covers. I'm not going to drop my coverage or change my limits one day and forget to tell me, but Uber might. I can also imagine a scenario where Uber's insurance acts in Uber's best interests, and not mine.
gd
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Re: Uber driving for extra income in retirement.

Post by gd »

denovo wrote:
white_water wrote:Sounds like a lot of liability for not much return.
$1 million isn't a lot of coverage in an accident with multiple claims.
How many accidents do you know of that have caused more than one million in damage? Give me a percent.
Liability, not damage. You kill a hedge fund manager, and his/her spouse wants revenge. I have an analogous concern in an unrelated occupation. I concluded that it is not possible to evaluate the actual risk, because this stuff seems to be loaded with nondisclosure agreements in the settlements. I take common-sense steps to shield assets (state laws critical here), and am super careful. E.g., if I was an Uber driver, I would *never* operate my cell phone or speed while carrying customers, make sure people knew that who could testify at the deposition/trial, and cell phone/gps records would substantiate it.

I've always wondered whether the business model of Uber is based at least partly on naive drivers clueless about their bottom-line expenses. If you're incurring some of those expenses anyway (owning nice, clean car) fine, but do the math.
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Re: Uber driving for extra income in retirement.

Post by TomatoTomahto »

wilpat wrote:I drive for Uber and enjoy it very much! It gets me out of the house and I meet new people which I like.
I only work a couple of hours a day and rarely after 5:00PM.
I am 76 years old and am in relatively good health.
I could see doing this for the reasons you mention. I drove a cab while in college/graduate school, and I really enjoyed meeting new people and catching up with my "regulars." If someone smoked in my Tesla I'd have to shoot them though, so I guess the purchase of a gun will have to be accounted for in the budget.
I get the FI part but not the RE part of FIRE.
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Bustoff
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Re: Uber driving for extra income in retirement.

Post by Bustoff »

OK I lied ... money is really not the only objective. I miss the level of social interaction that employment provided.
Also one of my biggest fears in retirement is turning into a couch potato.
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TomatoTomahto
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Re: Uber driving for extra income in retirement.

Post by TomatoTomahto »

Bustoff wrote:OK I lied ... money is really not the only objective. I miss the level of social interaction that employment provided.
Also one of my biggest fears in retirement is turning into a couch potato.
I've been thinking about this. As the kids go off to school (last one next year), I think I will find myself with a minimum of human interaction. I love my pets and get great satisfaction from them, but they don't hold up their end of a conversation so well.
I get the FI part but not the RE part of FIRE.
Twins Fan
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Re: Uber driving for extra income in retirement.

Post by Twins Fan »

I would say it all depends on location and hours.

Shuttling folks back and forth to the airport or Dr appointments during the day may be sort of fun. Driving drunks around on Fri and Sat nights... no thanks. My take on it at least. I don't know how much control one would have over what hours they work if driving for Uber though. If they're flexible and let you pick when you drive and what areas, it might be a decent gig in retirement.
William104
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Re: Uber driving for extra income in retirement.

Post by William104 »

This is the 2nd time I've linked to this site in the last few days, but it's exactly the type of information you are looking for. In short, location!!! http://www.financialsamurai.com/how-to- ... -for-uber/
ChrisB
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Re: Uber driving for extra income in retirement.

Post by ChrisB »

Bustoff wrote:
drawpoker wrote: Not to mention the extra work of having a drunk throw up on the seat. Or a mother who brings along a baby with a leaky diaper.

Even If you a post a prominent "No Smoking" sign, are you prepared to deal with the numerous axholes who will defy you and light a cigarette anyway?

Gotta be easier ways to make a little extra $$$ in retirement than this.
Interesting points. Actually, more distressing than interesting. :shock:

FYI - Uber has a No Smoking policy and passengers that do smoke in a Uber vehicle or rate down a driver for not letting them smoke can have their accounts suspended or canceled. Uber will also charge a cleaning fee in the event of damage being done to an Uber vehicle from such examples as noted above.

All very valid concerns and things you have to consider, but I wouldn't waste much time worrying about such things as they can or have been addressed.
denovo
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Re: Uber driving for extra income in retirement.

Post by denovo »

gd wrote:
denovo wrote:
white_water wrote:Sounds like a lot of liability for not much return.
$1 million isn't a lot of coverage in an accident with multiple claims.
How many accidents do you know of that have caused more than one million in damage? Give me a percent.
Liability, not damage. You kill a hedge fund manager, and his/her spouse wants revenge. I have an analogous concern in an unrelated occupation. I concluded that it is not possible to evaluate the actual risk, because this stuff seems to be loaded with nondisclosure agreements in the settlements. I take common-sense steps to shield assets (state laws critical here), and am super careful. E.g., if I was an Uber driver, I would *never* operate my cell phone or speed while carrying customers, make sure people knew that who could testify at the deposition/trial, and cell phone/gps records would substantiate it.

I've always wondered whether the business model of Uber is based at least partly on naive drivers clueless about their bottom-line expenses. If you're incurring some of those expenses anyway (owning nice, clean car) fine, but do the math.
Ok fine, liability. What percent of accidents have liability claims exceeding 1 million dollars. You say you don't have the data, but the people who do are insurance companies. Umbrella policies are roughly $200 for every one million in liability. That should give you an idea.
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Re: Uber driving for extra income in retirement.

Post by stoptothink »

Spirit Rider wrote:Is this the south side of Chicago, IL or Provo, UT. Like many things it life it is, location, Location, LOCATION.
Just caught this. Provo is kind of considered the "ghetto" of Utah County nowadays, if there is a ghetto in Utah County. Thought that was kind of funny.
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Re: Uber driving for extra income in retirement.

Post by Fat-Tailed Contagion »

After accounting for costs of doing business, what is the general range of per hour compensation for being an Uber driver ?

:moneybag

Thank you for any feedback.
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Re: Uber driving for extra income in retirement.

Post by surfstar »

Bustoff wrote:OK I lied ... money is really not the only objective. I miss the level of social interaction that employment provided.
Also one of my biggest fears in retirement is turning into a couch potato.
BINGO!

No, seriously, isn't that [bingo] what "seniors" do? ;)

There was a previous post (ah, here it is: viewtopic.php?t=150351 ); had a link to an article to show how little you actually make.

I'd bet your time would be well spent volunteering, looking into walking/hiking groups, going to the gym/Y, or other activities. Less of a downside risk, vs being an Uber driver.
gd
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Re: Uber driving for extra income in retirement.

Post by gd »

denovo wrote:(snip)
Ok fine, liability. What percent of accidents have liability claims exceeding 1 million dollars. You say you don't have the data, but the people who do are insurance companies. Umbrella policies are roughly $200 for every one million in liability. That should give you an idea.
Commercial activities are held to a higher standard, and the penalties are correspondingly higher. At-fault kill or disable a 30-year-old with $250k/year income, a spouse and 3 kids, involve a deep-pockets big-name company, and $1M is really not much. Look into what happens after airline accidents for some examples. It's not a show-stopper, you just have to understand your exposure and plan accordingly.
randomguy
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Re: Uber driving for extra income in retirement.

Post by randomguy »

Fat-Tailed Contagion wrote:After accounting for costs of doing business, what is the general range of per hour compensation for being an Uber driver ?

:moneybag

Thank you for any feedback.
It is very area (and car) specific but in the range of 6-15/hr. Do things like only working during surge pricing times in a big city and you can double that rate.

The advantage of Uber over working at McDonalds, isn't so much higher pay. It is the ability to set your own hours which for a second job is pretty nice.
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burt
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Re: Uber driving for extra income in retirement.

Post by burt »

Tried Uber as a rider for the first time yesterday.
Pretty darn convenient and reassuring if you are stranded.
I have no problem using Uber again.

burt
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