depreciation between mile 15,000 and mile 20,000 applies to miles driven in excess of 20,000. We apply the AAA cost figures to two scenarios: driving full time and driving part time on the Uber platform. In the case of full-time driver-partners we include the fixed costs of the vehicle under the assumption that they specifically purchased a new car to earn money as a professional driver and otherwise would have had recourse to another car for personal use. For full-time drivers, we further assume that the car is used mostly for providing ride-sharing services, but partly for personal use. Specifically, fixed costs are spread across 35,000 business miles (approximately the distance one would travel in 2,000 hours of professional driving) and 15,000 personal miles. We compute costs for full-time drivers under two assumptions: 1) excluding insurance and registration fees, as these costs would be required if the car were to be used for personal driving absent Uber; and 2) including insurance and registration fees, as these costs would be additional if the car is used exclusively for professional driving or if the driver would not have used the car absent Uber. In the part-time case we disregard fixed costs, assuming that drivers are using a car they already owned which would have depreciated regardless of driving on the platform and that they would have been responsible for insurance and registration fees regardless of occasionally driving on the Uber platform. Under these assumptions, Table 6 reports estimates of hourly costs for five vehicle types for part-time (column 1) and full-time drivers (columns 2 and 3). Table 6: Estimated Hourly Expenses by Vehicle Type and Part-Time and Full-Time Driver-Partners Vehicle Type Part Time Full Time Full Time with Insurance and Registration Small Sedan $2.94 $3.76 $4.29 Medium Sedan 3.60 4.79 5.33 Large Sedan 4.25 5.83 6.38 4WD SUV 4.38 5.94 6.46 Minivan 4.02 5.34 5.84 Source: authors’ calculations based on AAA data and Uber GPS data on average driving speed per hour with app on. See text for further details. 27
An Analysis Of The Labor Market For Uber’s Driver-partners In The United States Page 27 Page 29