Many have asked the question whether it is better to be an Uber driver or a taxi driver in Canberra. I have also done a bit of research to analyse whether you are better off taking an Uber or a taxi.
Drivers - Uber or Taxi?
I would say it is pretty much even stevens. You make around the same amount of money in the taxi as you would as an Uber driver, working 60 hours a week. Uber offers greater flexibilty around hours, a higher gross income, but on the flipside, the ATO knows your income so you have to declare it, you have to pay for fuel, insurance, your repayments on the vehicle, maintenance and tyres, and you have to pay income tax and GST. Most full time Uber drivers I speak to claim an average gross income of $1000 a week, but when you subtract $150 for fuel, $100 for servicing, tyres etc., $50 in insurances, the gross income is $750, all of which has to be declared to the ATO.
While gumtree ads claims that taxi drivers make $800 to $1100 in Canberra for a sixty hour week, the closer figure is a gross of $700-$750 (that's 50% of the gross fares). You don't have to pay for fuel or maintenance on the vehicle and the ATO doesn't know what you are earning as it is all cash. You choose to declare how much you earn, and most drivers declare $500 a week, even though they are earning more than that. You may say that's dishonest, but when you are earning below minimum wage, without super or holiday pay, you feel more justified, and the ATO tends to turn a blind eye given the low incomes of taxi drivers. Most driver pay around $3300 dollars in tax per year, based on a $26,000 declared income.
Like many of the hybrid vehicles they drive, many drivers are also hybrid drivers, working in both taxis and for Uber. For example, some of the night driver do Monday to Thursday in the taxi and Friday and Saturday nights for Uber. This is a great way to maximise your income as taxi drivers make more money on Monday to Thursday nights, and Uber takes the lion's share of the taxi/rideshare business on Friday and Saturday nights.
Customers - Uber or Taxi?
At most times of the day, Uber offers the cheapest and most efficient way of travelling, given their low rate per km, and their low call out fee. Uber is generally 20-30% cheaper than taxis. However, I've found that at 5am on a school day and wanting to catch an Uber to the airport, there aren't that many Uber drivers on the road. The fare may also be surcharged, let alone having to wait for a Uber driver to come from 15kms away. You are far better off booking a taxi for early morning flights.
The other time that you may be subject to a surge price is between 6pm and 8pm on a Saturday night, and 10pm Saturday, and 2am, Sunday morning. At these times, you will find taxis cheaper.
