Jerry, 60, spent 17 years as a taxi driver in Reno, Nevada. But he said he paid over $2,100 a month just to lease the taxi, so he quit and started driving for Uber and Lyft, where his monthly car payment was less than half the cost.
Jerry, who asked to use just his first name to avoid professional repercussions, made the transition thinking it would give him more financial stability. For the first six months, it did. Some months, he earned a lot more money while paying off two months at a time for his hybrid car.
But he's noticed it's become much harder to pay his bills. Screenshots shared with Business Insider show rides in his area paying below $0.80 per mile, which he said he cannot afford given gas prices are still around $4.60 a gallon.
Jerry tried going back to taxi driving, but after just a week with few customers, he said it was still more lucrative just to drive for Uber and Lyft as he explores other options.
"Everybody's using the app, so I told myself, I have my new van still, I don't want my credit to be ruined, and all the customers are going to Uber, so I have to go back and suck it up and do whatever I need to do to make my payments and bills working seven days a week," Jerry said.
While many gig drivers value flexibility, instant payments, and the social aspect, many are struggling to pay their bills as the industry becomes more crowded and competitive. The gig economy is expected to grow to 70 million workers by 2027, with millions looking to rideshare and delivery driving, to craft their schedules and work at their convenience. However, some like Jerry are still working 70 to 80 hours a week and are searching for more stability.
Taxi driving became 'unstable,' but rideshare driving isn't the solution
Until 2019, Jerry said taxi driving was relatively stable. After years in the Navy, he moved to Reno, working odd jobs in warehouses before taking up work as a taxi driver in 2005.
He made enough to pay bills and live comfortably, though he worked 11 to 12 hours a day. He made around $600 a week a few years, which he said was manageable given his rent and other expenses were relatively low.
By 2019, his company shut down. A few months later, the next company he worked for shut down. And by the time he found a third taxi job, he was barely making ends meet.
He decided after nearly two decades to try something different. Many of his friends had made the jump from taxi driving to rideshare driving for a big company. Uber driving would allow him to set his own hours, spend less in vehicle costs, and offer some rewards and incentives.
Though the first few months were decently consistent, he said he's been forced to work seven days a week and "can't afford a day off." He works from 3 p.m. until midnight or 1 a.m., since there are few rides in the mornings. He said this is what he has to do to make $1,000 — about $400-$500 less than what he made for comparable hours last year.
"I talk to the customers, and they think that we're getting most of the money that they pay, but we don't know what they pay and the customer doesn't know what we're getting," he said.
For a week, he shut off Uber and Lyft and tried driving for a new taxi company. He spent hundreds of dollars getting his licenses and paperwork, thinking it could still pay more than what he received from Uber. The taxi company charged $570 to lease a taxi, he said, with a $25 weekly deposit. He said he was only getting four or five trips a day for a 10-hour period, and he lost money for the week.
"I got in the taxi, and when I got to the airport, it was kind of like deja vu from before I went to Uber," Jerry said. "I used to say nine out of 10 people would go to Uber over taxi, but it's actually more like 95 out of 100. So I came back to Uber, and it's a real grind."
Trying to make it work
He said he sees larger cars sitting in the Uber and Lyft lot in Reno waiting for passengers who want to travel to tourist destinations including Tahoe, Truckee, and Incline Village, even though the rides are few and far between.
He said a drive from Reno to South Lake Tahoe — which is 58 miles — used to pay him around $85 a few months ago, but he was only offered $56 a few weeks ago, not accounting for gas and other expenses.
Screenshots show Jerry was offered a 176-mile trip from Reno to Alturas in northeast California for $147, and given he likely would not get a trip back, that adds up to $147 for six hours of driving not accounting for expenses. Additionally, a recent offer to drive to Incline Village was $33 for 32 miles, many of which are hilly and icy.
Jerry said it's rarely worth it to drive in the downtown, where rides are hard to get and only offer a few dollars each. He said he has "very little room for error" when it comes to driving and vehicle maintenance.
"There's a lot of new drivers too, and they're jumping on all these calls, but they just don't understand in the long run, they're not going to be able to pay their bills and maintain a living and keep the status quo with their vehicle," Jerry said.
He said he's considering seeking work at casinos nearby, though he said hiring is almost nonexistent since the winter months tend to be slow. He also said he's considered food delivery, though the payout is not much better than rideshare driving.
His house and other car have already been paid off, and he gets free medical coverage through Veterans Affairs, so he hopes to continue driving for Uber and Lyft. Still, he's not sure how much longer he can drive seven days a week, pulling in just $150 or so a day.
What keeps him going is the scenery near his area, as well as the opportunity to meet all sorts of new people through driving. There's also less traffic in his area than in a major city, and he doesn't need to deal with the restrictions of taxi companies such as meeting quotas or working certain hours.
He's been able to increase tips by always keeping his car clean, helping people with their suitcases, and talking with passengers about their days. He also tends to avoid the airport outside of peak hours and tries to do quick but consistent rides downtown.
"I want to keep things going because I love driving, and I've been a driver for so many years," he said. "I could get a regular job doing something else and retire in a year and a half, but I don't really want to."
Are you a gig driver struggling to make ends meet? Are you considering a new career choice? Reach out to this reporter at nsheidlower@bjinnox.com.
