BUFFALO, N.Y. (WKBW) — Gas prices are skyrocketing - and have been for months. Here's what you need to know about prices in your area:
7 News was contacted by an Uber & Lyft driver who reached out to us with concerns over gas prices, and how they are affecting his career.
"Every time I get behind the wheel, I lose money. Uber is not worth it for me anymore," said Daniel Kohler - a former driver.
Kohler shared with us his payscale directly from Uber and Lyft:
- Uber: $0.67 per mile driven.
- Lyft: $0.71 per mile driven.
However, its essential to compare those numbers against the average cost of what it takes to own a car.
According to the IRS, taking into account things like time, depreciation, maintenance, and gas, it costs approximately $0.58 per mile.
That means on average - Uber and Lyft drivers profit margin hovers around $0.09 per mile.
"They don't factor in the extras, like my driving to the person. Waiting for them," said Kohler.
Due to the lack of profits in comparison to previous years, it is possible that other drivers could leave the industry alongside Kohler.
"I am extremely concerned about the fact people may not realize they are losing money. The gas crisis has absolutely made it tougher to drive and succeed, and Uber and Lyft have made no moves to shift their payscale based on gas prices," said Chris Gerace, a contributor from the TheRideShareGuy.com.
Gerace is a driver himself, and specializes in Youtube tips and tricks to showcase drivers how they can maximize profits for rideshare services.
"If these gas prices continue - you could see people leave the business. That means longer wait times, more expensive rides, and just an overall less seamless process," he said.
Gas prices are hovering right around $3.80.