A boomer Uber driver's business had over $100,000 in earnings, but he estimates over half of that was lost to expenses and commissions. He shares why he plans to keep driving.

• A boomer Uber driver's business had over $100,000 in 2023 revenue, but he estimates pocketing far less.
• He said Uber commissions alone ate up $38,000, with driving expenses further cutting into profits.

Dean Ceran spends a lot of time behind the wheel of his Kia Forte.

Since 2016, the 66-year-old has put over 410,000 miles on the vehicle, more than 90% of which came while driving for Uber, he told Business Insider.

In a typical week, Ceran works between 50 and 60 hours. He drives between 7:30 a.m. and 5:30 p.m. every weekday except Wednesday — his off day — keeps the same schedule on Saturdays, and then works between 11 a.m. and 5:30 p.m. on Sundays. In his seven years as a driver, he's completed over 26,000 trips.

"The pros are the money I earn and the people I meet along the way," Ceran said of Uber driving in Virginia. "The cons are the time it takes to keep track of all the expenses."

These expenses do more than just take up his time — they take a significant bite out of his earnings, which surpassed $103,000 in 2023, according to a tax document viewed by BI. Just how much of a bite can be hard to calculate, but after Uber took its cut and his driving expenses were accounted for, he estimates bringing in less than $50,000 in profits.

Even so, Ceran told BI that he had no plans to stop driving and that while it had become a bit harder to make money in recent years, he's still reaching his financial goals.

"Even after expenses, I am still making a nice living driving with Uber," he said.

Ceran is one of many Uber and Lyft drivers actively tracking their ride-hailing earnings and expenses to make sure the gig is worth their time. But the calculations drivers use — and what figures they value when evaluating their success — vary considerably. Some have daily trip and earnings goals, while others care more about their per-mile or per-hour earnings. Some are focused on their profitability after vehicle expenses, while others monitor their taxable income.

In recent months, several drivers have told BI that ride-hailing has become less profitable than it used to be, which many have attributed to the rising number of drivers and changes to company algorithms they say have resulted in lower pay. Some drivers said closely monitoring their earnings was more important than ever.

Ceran shared his top strategy for making money and what motivated him to stick with ride-hailing.

How commissions and driving expenses reduce drivers' profits

For tax purposes, Ceran reported roughly $83,000 in business expenses for 2023, of which $38,000 consisted of Uber's booking and service fees — effectively the commission the company takes from drivers' earnings. Deducting $38,000 from his $103,000 in gross pay took Ceran's Uber income for both tax and practical purposes to roughly $65,000.

But those aren't the only expenses. For drivers, the cost of using their vehicles is a business expense that reduces their profits.

When filing their taxes, drivers can calculate their business expenses in one of two ways. First, they can input their gas, insurance, maintenance, depreciation, and other vehicle expenses in a given year, but these can be tricky to keep track of — many drivers use their vehicles for both personal and business purposes. Ceran estimated that in 2023, he spent $13,000 on maintenance, $9,000 on gas, $2,000 on car insurance, and $800 on tolls.

Using the roughly $25,000 in aforementioned expenses, his total profits would fall to roughly $40,000.

But Ceran, like many drivers, chose the second option for calculating his taxable income: the IRS's standard mileage deduction.

According to the IRS website, the standard mileage rate is "based on an annual study of the fixed and variable costs of operating an automobile." It tends to be the easier option for drivers and often produces a higher expense figure than option one — meaning less of drivers' take-home pay is taxed.

In 2023, drivers could deduct $0.65 for every business mile they drove as a vehicle expense. This figure varies by year but has generally grown over time.

The deduction is intended to account for driving expenses such as gas and maintenance, so if a driver chooses this option, they're not supposed to deduct these expenses elsewhere on their tax returns.

"You have to choose between using the standard mileage deduction or actual car expenses like insurance, maintenance, etc.," Lisa Greene-Lewis, a certified public accountant and tax expert with TurboTax, told BI.

There are some exceptions to this — including expenses like tolls, parking, and complimentary water for customers — that drivers can deduct in addition to their mileage deductions, Greene-Lewis said.

Given that Ceran drove roughly 67,000 miles for Uber in 2023, his mileage deduction was about $44,000.

With Uber's $38,000 commission and the $44,000 in mileage deductions subtracted from his $103,000 in gross earnings, he reported about $21,000 in taxable business profits. Take out $800 worth of tolls, and you get about $20,000.

In terms of take-home pay, his true vehicle expenses were probably closer to the $25,000 estimate he provided. For some drivers, the ability to reduce their taxable income and pay less in taxes is a perk of the gig.

Accepting nearly every ride has helped him make money

Even before he first tried Uber, Ceran had plenty of experience driving for a living. He said he used to drive town cars and limousines in the '80s and '90s.

His first year driving Uber, 2016, was more eventful than anticipated: He got caught in Hurricane Matthew while driving in Norfolk, Virginia.

"I was actually stuck in door-deep water for a couple of hours and didn't get towed for 12 hours," Ceran said.

In the years following this incident, he said his Uber hours fluctuated widely but that he'd been doing it full-time since 2019.

Ceran's top strategy is to accept nearly every trip — his acceptance rate is 99%. When one ride ends, he said, he tries to get another as soon as possible.

"The idea is to let the app keep giving me trips and keep accepting them so I keep rolling and keep making money," he said.

Some drivers have opted for a different approach.

The biggest factor that has negatively influenced his earnings has been taking time off for vehicle repairs — he said he'd gotten in a few accidents over the years that weren't his fault.

The primary reason Ceran continues to drive is that he's satisfied with the income, but he said the gig also had social benefits.

"I love the interaction with the wide variety of people that request Uber rides," he said.

Are you a gig worker willing to share your story, including pay, schedule, and tipping? If so, reach out to this reporter at jzinkula@insider.com.

Editor's note: February 6, 2024 — This story has been updated to clarify details about the IRS standard mileage deduction's use as an estimate for drivers' annual expenses.