Anyone using, or know anyone using their diesel truck for Uber driving?

[Crunch]

I've been seriously considering driving for Uber, and wonder if anyone is using, or knows anyone using a diesel truck for the task. In theory, the money can be very good but I think to make it worth it I would have to do a lot of the longer trips, such as those to the nearest international airport (about 25 miles), then next big city over (about 35 miles) or the nearest casinos (between 90 and 220 miles for three casinos). I have also learned that Uber is on the verge of getting into the package delivery service, which gets me tingly all over. I would love to run time-critical packages up to 500 miles if the opportunity presented itself (and of course, run packages back the other way). If it plays out right a person could run packages around for a week, have their fuel and hotel paid for and then end up back home, all without having to have a CDL (hopefully). I would also be interested in hauling luggage through Uber for people who are flying shorter distances, but don't want to pay baggage fees for the amount of luggage they have, risk losing it or having stuff stolen by the pure-as-the-wind-driven-snow TSA people. My truck is clean for a 13 year old truck, runs great and gets good fuel economy so I'm down for the struggle if I can make money doing it. So has anyone heard anything about this?

 

[TFucili]

Who covers the liability in the event someone gets hurt, or a package is lost or damaged? Do you have to carry commercial/livery insurance? Not knocking, just curious. Anyway, it sounds like ideal work for a fuel sipping Ecodiesel.

 

[jgillott]

Who covers the liability in the event someone gets hurt, or a package is lost or damaged? Do you have to carry commercial/livery insurance? Not knocking, just curious. Anyway, it sounds like ideal work for a fuel sipping Ecodiesel.

I haven't inquired specifically about Uber, but I did ask some questions about renting out or possibly hauling passengers for a friends business after I purchased my van this summer. At least here in PA, you do need to have a commercial insurance policy if you are using the vehicle for such an operation and it really becomes expensive when passengers come in to play. You would definitely need to look in to the regulations in your area before one would get involved with Uber or similar.

 

[Crunch]

Who covers the liability in the event someone gets hurt, or a package is lost or damaged? Do you have to carry commercial/livery insurance? Not knocking, just curious. Anyway, it sounds like ideal work for a fuel sipping Ecodiesel.

At this point, I'm not even sure who handles the liability when Uber drivers haul people around, or if the drivers even tell their insurance company what they do. I do believe that if you want to be an Uber Black driver it is considered livery/taxi driving, and you need the proper license. And I would bet that if an Uber X, Uber XL or Uber Black driver had a wreck that resulted in injuries the injured person's attorney would sue Uber along with anyone else they could. That kind of liability if one reason I would love driving packages for Uber. They don't care how loud the music is and don't have to stop to use the restroom every 50 miles. The Motley Fool has an article on Uber's ambitions, in which they say it will be tough to compete against Fed-Ex and UPS delivery networks because they have spent so much define routes, make them efficient, etc. But at the time I wasn't really thinking about delivering a truckload of packages to several spread out locations in a city. I was thinking more along the lines of Uber offering a service for time critical, expedited delivery of a package or packages to a single customer who needs it as soon as possible, possibly in the middle of the night without having to wait for normal business hours to kick in. Things such as specific part or products, or even original documents when e-mail scans and faxes won't do. Here's the Motley Fool article if you are interested:

Why FedEx Isn't Scared of Uber

 

[TFucili]

Run with 'Roadie' and dine at Waffle House
http://fortune.com/2015/02/24/waffle-house-deliveries/

 

[Bob4x4]

uber cansupply liabilityinsurance

 

[dcs1968]

I thought that Uber had a stipulation that the vehicle could not be over 5 years old.

 

[Tuesdak]

Package delivery service... Check.
Hauling RV's... Check.
Hauling Cars... Check.
Hauling Passengers... Haven't done that.

All of them require you know your CPM. Includes fuel, tires, average parts. Very easy to loose money and wear your truck out. Deadhead miles will add up quick and this is the most important thing to watch for EVERY trip. Insurance is a big factor. Tip: make sure you declare the replacement cost of your truck - don't low-ball yourself on that number when getting a commercial policy.

Uber pays less than everyone else. <-- That's a period. Want to deliver luggage from the airport? Find and apply with the current company doing this. You are also competing with the smallest coffin on wheels high MPG small cars. Single packages for Dell 4 hour warranty would be delivered like this. Taxi service could be done with any local transportation or Taxi company. There are a lot of transportation companies out there to check out for part and full time work. (IMO they are more transparent than the mystery destinations of the Uber system.)

A truck is better suited to a parts delivery route. Small single package rates don't pay for your full size truck. Frankly delivering cars, towing (broken cars), or other "Hot Shot" is about the only other area there is left for a profit. After the RV delivery market collapsed we tried a parts route. Easy $210 a day in fuel for the parts route. It was near or below minimum wage during the Great Depression V2 and put another company that paid better out of business. Several local Hot Shot or expeditor companies you may be able to check out.

Not saying it can't be done, but, be careful you aren't loosing money while wearing out your truck.

Think of the workout you get loading and unloading this 28' trailer. And that's a light load. Had it loaded to the ceiling front to back and the truck bead full as well. At least tires roll...

 

[Crunch]

Well this sure took the shine off my hopes. I didn't know about the 5 year max stipulation, but if it was just package delivery I'm not sure why they would care. It's cool that Uber will help you get insurance, just as they will help you get a car if you want to drive for them.

@ JDoremire, I've done some under the radar hotshotting for a friend over the last several years (I do significant site work, so I've been able to get by with it), and my total CPM for that and all my other driving is about $.35/mile. I've done several runs from Texas to the Carolinas for $2K, which more than covers my fuel, wear and tear and food and lodging even though I am pulling a trailer at max capacity on the outbound side. Naturally, I wouldn't expect that for package delivery, though it would be great for hauling something that fits in the bed.

And TFucili - Sorry, but a waffle and drink wouldn't work, even if it was just a single envelope. But throw a hot waitress into the mix and who knows...

 

[TFucili]

And TFucili - Sorry, but a waffle and drink wouldn't work, even if it was just a single envelope. But throw a hot waitress into the mix and who knows...

LOL, I've seen a lot of things at Waffle House, but I don't think I've seen a hot waitress

 

[Tuesdak]

Maybe look into doing more of the hotshotting above the radar as it is proven profitable for you. Just make sure to have good commercial insurance while doing it. Even better for a LLC, that you may already have, to help with taxes and liability.

I don't recall my towing CPM being so low - 1/2 the MPG and 8 tires on the road with extreme grades. Flat land would give me 1/3 better MPG. Lake Havasu runs would be 12MPG vs. the 7 MPG, yes 7 MPG, on the 7% grades that go for miles going east of Phoenix. Just fuel alone was 0.38 per mile.

You have 100K or so trouble free miles from a pickup and then it will literally $50 and $100 you to death. YMMV and luck of course. My 1993 has more $ in it than the 2003 is worth and it was all written off. (Survived the fun IRS audit acid test too.) Aka the 1993 earned it's restoration over 1/4 million miles and has the battle scars to prove it. Or was it more like an alcoholic owning a bar? :-laf

 

[Crunch]

Maybe look into doing more of the hotshotting above the radar as it is proven profitable for you. Just make sure to have good commercial insurance while doing it. Even better for a LLC, that you may already have, to help with taxes and liability.

If I went above the radar wouldn't I have to get a CDL? As it is now, I get paid for doing work at the site and reimbursed for expenses, which works out very well. I can claim I don't get paid for driving, which I believe is where the CDL, log book, etc come into play.

I don't recall my towing CPM being so low - 1/2 the MPG and 8 tires on the road with extreme grades. Flat land would give me 1/3 better MPG. Lake Havasu runs would be 12MPG vs. the 7 MPG, yes 7 MPG, on the 7% grades that go for miles going east of Phoenix. Just fuel alone was 0.38 per mile.

I just checked my spreadsheet, and for 275K miles my total CPM, which includes purchase price, fuel, oil changes and all other truck related costs but not insurance, registration, inspections, etc is $.36/mile. I've learned that if I keep the RPM's right at about 1800 (roughly 68MPH) I can get 18-22MPG on the highway, depending on wind, even if I am hauling stuff in the bed. I've had 3K in the bed on the outbound side for some trips and gotten 18MPG. With a trailer and total towing weight of 12K and keeping the speed around 67MPH I can get 14MPG on the outbound side and 16MPG on the return side when the trailer is only about 4,000lbs. The above figures are with optimum weather conditions and a tail wind.

You have 100K or so trouble free miles from a pickup and then it will literally $50 and $100 you to death. YMMV and luck of course. My 1993 has more $ in it than the 2003 is worth and it was all written off. (Survived the fun IRS audit acid test too.) Aka the 1993 earned it's restoration over 1/4 million miles and has the battle scars to prove it. Or was it more like an alcoholic owning a bar? :-laf

I think my '03 has right around $100K in it, which includes the purchase price including interest, all the fuel and maintenance costs, etc and excluding the insurance, registration, inspection, etc. My biggest single cost was $1700 for getting the front end suspension rebuilt earlier this year. That my get edged out when I get the HVAC doors and system done when I take it in to have the passenger and drivers side airbag recalls done. The AC works fine, but I go through a can of R134a every 18 months and one of my mode doors and the blend door have occasional problems, but still work for the most part. I've also had the APPS replaced twice, and am on my third windshield because of flying rocks and dying birds.

 

[Tuesdak]

Not sure what you haul and then work at the site? Are you hauling your own tools and equipment? If so this may exempt you from the entire mess.

CDL is just a driver's license explained here and generally not required for the 'normal' limits of a 1 ton. The Red Line in the sand is 26,001 Lbs and only the newest 1 ton trucks can go over that. You will need a medical card and DOT inspection sticker from an annual inspection on your truck.

Log book is a general PIA, but, protects you from a broker that wants too much out of you. (Miles, hours on the road, etc.) You don't need a CDL to run a log book. Or should I say you can be required to run a log book even if you are not required to have a CDL.

The real concern would be a DOT number or running under FMCSA operating authority. Then the magnetic stickers on the doors with company name and DOT number and then MC Number fun, offhand I think this requires a bond and some other red tape. This specific red tape is why it is easier to run under a broker or someone else's authority. (Of course at a cost to you.)

So far the MT on the 2wd 2003 5.9 is impressive for MPG I have seen with it towing. That's one big reason I am doing the head R&R rather than dumping it.

 

[Crunch]

Not sure what you haul and then work at the site? Are you hauling your own tools and equipment? If so this may exempt you from the entire mess.

I haul baby aquatic creatures for installation in ponds. The trailer I haul is a self-contained unit with all the equipment needed, but it belongs to the company. I do all the work at the site and use a power inverter connected to my truck batteries to power pumps at the sites, unless they have power run to the ponds for aeration and other functions.

CDL is just a driver's license explained here and generally not required for the 'normal' limits of a 1 ton. The Red Line in the sand is 26,001 Lbs and only the newest 1 ton trucks can go over that. You will need a medical card and DOT inspection sticker from an annual inspection on your truck.

I was always under the impression that if you "get paid for driving" they could hang a commercial driving rap on you. The few times I have been stopped by the cops they do phrase the question so as to inquire how much I get "paid to drive", but my response is that I get paid to do work at the site and then am reimbursed for expenses. To me it's always been a technicality that keeps me just above the line. I did have one cop from a Drug Task Force pull me over and ask the same questions several times, phrased slightly different each time and in random order. I knew he was suspicious of me when he asked me to step out of my truck at the beginning of the stop (I've seen Cops enough to know the score when they get you out of the vehicle). He wrote me a warning ticket and told me it wouldn't go to court, and when he said I was free to go I knew exactly what he was going to say when I took my first step back to the truck: "By the way, do you mind if I search your vehicle?" I said I wouldn't give him permission (I had no contraband whatsoever, but know you never, ever consent to a search) and his face lit up like he won the lottery. He asked me why and I said he hadn't articulated in reason on which to base a search, but I wouldn't complain if he wanted to run a dog around the truck. He told me that was exactly what he was going to do, so I waited until the canine unit got there. He ran the dog around my truck a few times (they had me roll the windows down before hand), then shrugged at the cop who stopped me, who gave me a scowl of a look and told me to have a nice day.

The real concern would be a DOT number or running under FMCSA operating authority. Then the magnetic stickers on the doors with company name and DOT number and then MC Number fun, offhand I think this requires a bond and some other red tape. This specific red tape is why it is easier to run under a broker or someone else's authority. (Of course at a cost to you.)

That is what I am really trying to avoid. One thing I've looked into here in Texas is using my truck as a pilot vehicle. There are no real requirements beyond getting the signage and lights for your truck as long as you drive in-state. The downside is that existing companies tend not to hire people because they are in business for themselves, so I would basically have to start my own company and build up a clientele. You got a per mileage rate + a per diem for expenses on the road.

 

[Tuesdak]

I would look into "the company" that owns the trailer and see if they have any of the required stuff. They may not and may be ignorant of the rules putting you at risk. Our broker got schooled by the DOT when someone had too many scrap batteries being returned w/o placards and were busted at the scales. They had to send another truck/trailer to offload batteries before the driver could get his truck moved from the scales. The DOT gave them a light fine (rather than put them out of business) and made sure they complied with follow up visits. DOT literally schooled them on the laws by explaining what they needed to do. Drug test program, logs, record keeping, signs on the vehicles...

Over 150 miles or 12 hours 'involved in commerce' requires a logbook. Lots of exceptions to the rules so I would suggest a consult with a good transportation attorney. No one else is going to cover your butt but you. I can't tell you how much the expensive legal advice saved me, but, it was many times what the issues and problems would have cost.

A good resource is The Owner-Operator Independent Drivers Association http://www.ooida.com/

Tip of the day DO NOT keep records any longer than required by law. For example DOT (hours miles driven) logs are only required to be kept for 6 months. They may prove per diem to the IRS or they may hurt you. The less paperwork you are forced to give the IRS the better off you are.