A $200 night feels like a $200 night — until you do the real math. Between the costs most drivers never track, the gap between gross pay and actual profit is bigger than almost anyone expects. Here are the seven costs quietly taking a cut of every shift.
1. Depreciation — the silent giant
Every mile you drive makes your car worth less. For a typical used sedan, depreciation runs roughly $0.10–$0.15 per mile (example estimate — yours depends on the car). Drive 30,000 rideshare miles a year and that’s $3,000–$4,500 of value gone, whether you “feel” it or not. It’s the biggest cost most drivers never budget for.
2. Dead miles
The miles between paid rides — driving back from a far drop-off, repositioning to a busier zone — earn you nothing but still burn gas and wear. Many drivers run 30–40% dead miles without realizing it. Every dead mile is a cost with zero revenue attached.
3. The insurance gap
Your personal auto policy very likely excludes commercial driving — and the platform’s coverage is thinnest exactly when you’re waiting for a ride (just $50K/$100K/$25K contingent in Texas). If you’re in that gap without a rideshare endorsement, you’re exposed. Read our Texas rideshare insurance guide before you assume you’re covered.
4. Maintenance that scales with miles
Tires, brakes, oil, wipers — everything wears per mile, and rideshare piles miles on fast. Budget roughly $0.08–$0.12 per mile for maintenance (example estimate). Skip it and you’ll pay later in breakdowns during your best earning hours.
5. Phone and data
Your phone is work equipment now. The business-use percentage of your bill and your data plan is a real cost — and a legitimate deduction. Track the percentage honestly.
6. Self-employment tax
As a 1099 contractor, nobody withholds taxes for you — and you owe self-employment tax of 15.3% on your net earnings, on top of income tax. Set aside 25–30% of net profit for quarterly estimated payments so April doesn’t ambush you. (More in our 1099 tax guide.)
7. Platform fees
The service fee on every ride is the most visible cost and the easiest to underestimate in aggregate. Over a year, the platform’s cut of your fares is typically your largest visible expense — which is exactly why knowing your net per mile matters more than your gross per ride.
The fix: know your true $/hour
You can’t cut what you don’t measure. Add up the seven costs above for your car and your driving, and most drivers land around $0.30–$0.40 per mile in true costs (see our cost-per-mile breakdown). The SA Drivers Club Profit Lab runs this calculation on every shift you log — free — so you always know what a night actually paid you, not what the app said it did.