Some Uber and Lyft drivers are finding that renting or buying a Tesla, the luxury electric car, is a more profitable option now that soaring gas prices have upended the economics of gig work.
Last summer, 34-year-old Heidi Barnes thought about upgrading her beloved 2009 Toyota Camry, which she nicknamed “The Beast,” for a sleek Tesla Model 3 sedan. The Lancaster, California-based driver never imagined that the high-end vehicle would become less of a splurge and more like a last resort until the average price for a gallon of petrol in the US surpassed $4 for the first time in March.
Almost overnight, a full tank went from costing Ms Barnes roughly $60 a day to more than $100, making it harder to make a decent profit from ferrying passengers around Los Angeles County.
“It was a huge push to get in a Tesla sooner rather than later,” Ms Barnes said.
Ms Barnes opted to rent a standard Tesla Model 3 for a month through Hertz, which has a deal with Uber offering drivers a weekly rate of $344 that includes insurance, basic maintenance and unlimited miles.
Even after accounting for the cost to charge the car, Ms Barnes was paying roughly $450 a week for “the car of her dreams”, less than almost $600 required to fuel her Camry. In her first week, Ms Barnes’ earnings covered the cost of the rental for the month.
Her new ride is also a hit with passengers. “They’re a lot more generous,” Ms Barnes said. “Usually I’m lucky to get $1 to $3 tips but it’s now $10 or $15, sometimes consecutively.”
In total, she netted more than $2,600 during her 25-day rental, more than double the $800 to $1,000 she typically made from driving the “Beast,” according to screenshots of earnings she provided to Bloomberg.
This month, the national average price for a gallon of petrol topped $5, an all-time high since the American Automobile Association began collecting pricing data in 2000. As prices continue to climb, the difference between petrol-powered cars and electric ones is only becoming more stark.
For drivers who have seen their take-home pay whittled down, the switch isn’t just skimming a few dollars from expenses, it’s a lucrative earnings opportunity.
The number of ride-share and delivery drivers who opted to hop behind the wheel of a Tesla jumped 186 per cent in May compared with last June, according to Gridwise, an app that helps gig workers manage their trips.
The Tesla trend also comes at a time when Uber and Lyft are on the hook to show progress towards achieving their goal of switching entirely to EVs in Europe and North America by 2030.
Uber offers an additional $1 per ride to drivers who switch to an EV — which can earn them up to $4,000 a year under the company’s Green Future programme. Last month, the San Francisco-based company revamped its driver app with an “EV hub” that features a charging map and made rides in EVs a premium option for passengers.
Lyft, meanwhile, offers no financial incentives for drivers to switch to EVs.
Since launching its partnership with Hertz in November, Uber has seen more than 15,000 drivers rent a Tesla. “Participation has been really compelling,” said Adam Gromis, Uber’s public policy manager for sustainability.
“Drivers are smart and they know how to maximise their take-home pay.”
Uber has about 1 million Uber drivers in the US, according to The Rideshare Guy, a website dedicated to the ride-share industry.
At Lyft, growth of EVs on the platform is at record levels, a spokesman said, and there has been a 27 per cent increase in EV use since the first quarter. While Teslas are the dominant EV used by Lyft drivers, the company is also seeing significant growth from other manufacturers, particularly Kia, Mr Gromis said.
But reaching those EV goals in the US in less than a decade won’t be easy. In 2021, fewer than 1 per cent of ride-hailing vehicles in the country were electric, according to clean-energy research firm BloombergNEF. Uber is doing better in Europe, where government incentives also help spur the switch to EVs.
One big reason behind the reticence is that the cost of a battery-powered car is still too high relative to a driver’s wages. On average, an electric car now costs $61,000.
Another hurdle is the availability of charging stations. Ms Barnes mostly drives in Los Angeles, where Tesla superchargers are plentiful but often crowded. Without a wait, the process takes about 45 minutes, but when every dock is taken, it can become a much longer ordeal, Ms Barnes said.
“In this job, every minute you’re not on the road picking up a passenger is money you’re leaving on the table.”
Renting is a low-risk option for Uber and Lyft drivers like Ms Barnes who can’t afford to purchase one outright, especially after Tesla raised prices by as much as $6,000 per car.
But for other drivers like Luis Martinez, 34, taking out a hefty loan is a risk worth taking instead of waiting for petrol prices to come down.
Like Ms Barnes, Mr Martinez first started looking to replace his 2012 Toyota Camry Hybrid with an electric car at the beginning of March when petrol prices spiked. He had his eyes set on a new Hyundai Ioniq 5, which, listed at about $47,000, was in his price range. But at dealerships the car was going for as much as $62,000, well above the Manufacturer’s Suggested Retail Price, and the resale market was even worse, Mr Martinez said.
That’s when he settled on the Tesla Model 3 Long Range. “I was throwing $800 at gas every month and I realised instead I could put that money towards a car I could actually own,” he said.
With a $58,000 price tag, Mr Martinez took out a loan. In one week, his $900 car payment is covered and he pockets about $1,000 more in take-home pay.
Persistently high petrol prices and resurgent demand for ride-hailing have created the ideal conditions for a Tesla — a car considered affordable for only well-off buyers — to be within reach for Uber and Lyft drivers. But the maths only makes sense if demand for rides remains elevated.
In May, average transactions per customer at both Uber and Lyft increased 15 per cent compared with last year, according to Bloomberg Second Measure, and the summer travel season typically benefits ride-hailing.
Still, Mr Martinez, who drives in Ventura, California, is acutely aware of the trade-off. “I’ve never taken a loan for that much before and it’s very scary. I’m more stressed because I know I have to drive a minimum to cover the car and doubt creeps in,” he said.
Still, when he pulled the trigger on buying his Tesla, petrol had just crossed $5. Today, it’s north of $6.30, according to AAA. “There’s a lot of anxiety but, for me, the maths makes sense,” Mr Martinez said.
Results
2.15pm: Handicap Dh80,000 1,950m
Winner: Hello, Tadhg O’Shea (jockey), Ali Rashid Al Raihi (trainer).
2.45pm: Handicap Dh90,000 1,800m
Winner: Right Flank, Pat Dobbs, Doug Watson.
3.15pm: Handicap Dh115,000 1,000m
Winner: Leading Spirit, Richard Mullen, Satish Seemar.
3.45pm: Jebel Ali Mile Group 3 Dh575,000 1,600m
Winner: Chiefdom, Royston Ffrench, Salem bin Ghadayer.
4.15pm: Handicap Dh105,000 1,400m
Winner: Ode To Autumn, Patrick Cosgrave, Satish Seemar.
4.45pm: Shadwell Farm Conditions Dh125,000 1,200m
Winner: Last Surprise, James Doyle, Simon Crisford.
5.15pm: Handicap Dh85,000 1,200m
Winner: Daltrey, Sandro Paiva, Ali Rashid Al Raihi.
The Voice of Hind Rajab
Starring: Saja Kilani, Clara Khoury, Motaz Malhees
Director: Kaouther Ben Hania
Rating: 4/5
What are the influencer academy modules?
- Mastery of audio-visual content creation.
- Cinematography, shots and movement.
- All aspects of post-production.
- Emerging technologies and VFX with AI and CGI.
- Understanding of marketing objectives and audience engagement.
- Tourism industry knowledge.
- Professional ethics.
Western Region Asia Cup T20 Qualifier
Sun Feb 23 – Thu Feb 27, Al Amerat, Oman
The two finalists advance to the Asia qualifier in Malaysia in August
Group A
Bahrain, Maldives, Oman, Qatar
Group B
UAE, Iran, Kuwait, Saudi Arabia
UAE group fixtures
Sunday Feb 23, 9.30am, v Iran
Monday Feb 25, 1pm, v Kuwait
Tuesday Feb 26, 9.30am, v Saudi
UAE squad
Ahmed Raza, Rohan Mustafa, Alishan Sharafu, Ansh Tandon, Vriitya Aravind, Junaid Siddique, Waheed Ahmed, Karthik Meiyappan, Basil Hameed, Mohammed Usman, Mohammed Ayaz, Zahoor Khan, Chirag Suri, Sultan Ahmed
RACECARD%20
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How to play the stock market recovery in 2021?
If you are looking to build your long-term wealth in 2021 and beyond, the stock market is still the best place to do it as equities powered on despite the pandemic.
Investing in individual stocks is not for everyone and most private investors should stick to mutual funds and ETFs, but there are some thrilling opportunities for those who understand the risks.
Peter Garnry, head of equity strategy at Saxo Bank, says the 20 best-performing US and European stocks have delivered an average return year-to-date of 148 per cent, measured in local currency terms.
Online marketplace Etsy was the best performer with a return of 330.6 per cent, followed by communications software company Sinch (315.4 per cent), online supermarket HelloFresh (232.8 per cent) and fuel cells specialist NEL (191.7 per cent).
Mr Garnry says digital companies benefited from the lockdown, while green energy firms flew as efforts to combat climate change were ramped up, helped in part by the European Union’s green deal.
Electric car company Tesla would be on the list if it had been part of the S&P 500 Index, but it only joined on December 21. “Tesla has become one of the most valuable companies in the world this year as demand for electric vehicles has grown dramatically,” Mr Garnry says.
By contrast, the 20 worst-performing European stocks fell 54 per cent on average, with European banks hit by the economic fallout from the pandemic, while cruise liners and airline stocks suffered due to travel restrictions.
As demand for energy fell, the oil and gas industry had a tough year, too.
Mr Garnry says the biggest story this year was the “absolute crunch” in so-called value stocks, companies that trade at low valuations compared to their earnings and growth potential.
He says they are “heavily tilted towards financials, miners, energy, utilities and industrials, which have all been hit hard by the Covid-19 pandemic”. “The last year saw these cheap stocks become cheaper and expensive stocks have become more expensive.”
This has triggered excited talk about the “great value rotation” but Mr Garnry remains sceptical. “We need to see a breakout of interest rates combined with higher inflation before we join the crowd.”
Always remember that past performance is not a guarantee of future returns. Last year’s winners often turn out to be this year’s losers, and vice-versa.
Evacuations to France hit by controversy
- Over 500 Gazans have been evacuated to France since November 2023
- Evacuations were paused after a student already in France posted anti-Semitic content and was subsequently expelled to Qatar
- The Foreign Ministry launched a review to determine how authorities failed to detect the posts before her entry
- Artists and researchers fall under a programme called Pause that began in 2017
- It has benefited more than 700 people from 44 countries, including Syria, Turkey, Iran, and Sudan
- Since the start of the Gaza war, it has also included 45 Gazan beneficiaries
- Unlike students, they are allowed to bring their families to France
More on Quran memorisation:
The specs: 2018 Nissan 370Z Nismo
The specs: 2018 Nissan 370Z Nismo
Price, base / as tested: Dh182,178
Engine: 3.7-litre V6
Power: 350hp @ 7,400rpm
Torque: 374Nm @ 5,200rpm
Transmission: Seven-speed automatic
Fuel consumption, combined: 10.5L / 100km
Expo details
Expo 2020 Dubai will be the first World Expo to be held in the Middle East, Africa and South Asia
The world fair will run for six months from October 20, 2020 to April 10, 2021.
It is expected to attract 25 million visits
Some 70 per cent visitors are projected to come from outside the UAE, the largest proportion of international visitors in the 167-year history of World Expos.
More than 30,000 volunteers are required for Expo 2020
The site covers a total of 4.38 sqkm, including a 2 sqkm gated area
It is located adjacent to Al Maktoum International Airport in Dubai South
No more lice
Defining head lice
Pediculus humanus capitis are tiny wingless insects that feed on blood from the human scalp. The adult head louse is up to 3mm long, has six legs, and is tan to greyish-white in colour. The female lives up to four weeks and, once mature, can lay up to 10 eggs per day. These tiny nits firmly attach to the base of the hair shaft, get incubated by body heat and hatch in eight days or so.
Identifying lice
Lice can be identified by itching or a tickling sensation of something moving within the hair. One can confirm that a person has lice by looking closely through the hair and scalp for nits, nymphs or lice. Head lice are most frequently located behind the ears and near the neckline.
Treating lice at home
Head lice must be treated as soon as they are spotted. Start by checking everyone in the family for them, then follow these steps. Remove and wash all clothing and bedding with hot water. Apply medicine according to the label instructions. If some live lice are still found eight to 12 hours after treatment, but are moving more slowly than before, do not re-treat. Comb dead and remaining live lice out of the hair using a fine-toothed comb.
After the initial treatment, check for, comb and remove nits and lice from hair every two to three days. Soak combs and brushes in hot water for 10 minutes.Vacuum the floor and furniture, particularly where the infested person sat or lay.
Courtesy Dr Vishal Rajmal Mehta, specialist paediatrics, RAK Hospital
KEY%20DATES%20IN%20AMAZON'S%20HISTORY
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Killing of Qassem Suleimani
Key findings of Jenkins report
- Founder of the Muslim Brotherhood, Hassan al Banna, "accepted the political utility of violence"
- Views of key Muslim Brotherhood ideologue, Sayyid Qutb, have “consistently been understood” as permitting “the use of extreme violence in the pursuit of the perfect Islamic society” and “never been institutionally disowned” by the movement.
- Muslim Brotherhood at all levels has repeatedly defended Hamas attacks against Israel, including the use of suicide bombers and the killing of civilians.
- Laying out the report in the House of Commons, David Cameron told MPs: "The main findings of the review support the conclusion that membership of, association with, or influence by the Muslim Brotherhood should be considered as a possible indicator of extremism."
Western Region Asia Cup Qualifier
Results
UAE beat Saudi Arabia by 12 runs
Kuwait beat Iran by eight wickets
Oman beat Maldives by 10 wickets
Bahrain beat Qatar by six wickets
Semi-finals
UAE v Qatar
Bahrain v Kuwait
Unresolved crisis
Russia and Ukraine have been locked in a bitter conflict since 2014, when Ukraine’s Kremlin-friendly president was ousted, Moscow annexed Crimea and then backed a separatist insurgency in the east.
Fighting between the Russia-backed rebels and Ukrainian forces has killed more than 14,000 people. In 2015, France and Germany helped broker a peace deal, known as the Minsk agreements, that ended large-scale hostilities but failed to bring a political settlement of the conflict.
The Kremlin has repeatedly accused Kiev of sabotaging the deal, and Ukrainian officials in recent weeks said that implementing it in full would hurt Ukraine.
Meghan%20podcast
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