In light of the skyrocketing gasoline prices that have completely changed the economics of gig labor, some Uber Technologies Inc (NYSE: UBER) and Lyft Inc. (NASDAQ: LYFT) drivers are discovering that renting or purchasing a Tesla, the luxury electric vehicle, is a more viable alternative right now.
Uber and Lyft drivers turning to Teslas
Heidi Barnes, 34, considered trading in her cherished 2009 Toyota Camry, which she dubbed “The Beast,” for a Tesla Inc. Model 3 sedan last summer. Before the average price per gallon of gasoline in the US topped $4 for the very first time in March, the motorist from Lancaster, California, never dreamed that the high-end car would be less of a luxury and more of a final resort. A full tank jumped from costing her roughly $60 per day to over than $100 almost overnight, making it more difficult to turn a fair profit from transporting clients around Los Angeles County. According to Barnes, it encouraged her to consider a Tesla immediately.
Barnes rented a standard Tesla Model 3 for a month through Uber’s partner Hertz which offers drivers a rate of $344 per week, including basic maintenance, insurance, and unlimited miles. After accounting for the costs to charge the car, he was paying around $450 per week, which was less than the $600 her Camry needed for gas. She says that within a week had earned an equivalent for the cost of the rental, and now she can get tips of $10 to $15.
Gas prices hit a record high.
The national average gas price per gallon topped $5 in June, which is a record high since the American Automobile Association started collecting pricing data. The cost gap between gasoline-powered vehicles and electric vehicles is widening as costs rise.
For drivers whose take-home pay has decreased, the changeover represents a significant possibility for income growth rather than merely a way to save a few bucks. The number of ride-hailing and courier drivers who chose to get drive a Tesla increased by 186 percent in May compared to the previous June, according to Gridwise.
