NYC TLC Drivers Are Getting Squeezed At The Pump...Running The Numbers
Record gas prices impact everyone, but has an outsized impact on NYC TLC drivers. Many are probably now spending well over $600 p/month just on gas. SUV economics are increasingly unsustainable
AutoMarketplace NYC covers the for-hire transportation industry and automotive news. Check out AutoMarketplace on YouTube ▶️
You know things are bad at the pump and set to potentially get worse (Russian oil sanctions, including “self-sanctions”) when EV pioneer (yes, you didn’t read that wrong) and Tesla CEO Elon Musk is calling on oil & gas production to increase!
So, just how bad are prices at the pump, specifically in NYC?
We are approaching the multi-decade record in NYC, set in July 2008, when regular unleaded prices in NYC peaked at $4.41 (note the true like-for-like figure would be higher to reflect inflation…$4.41 in 2008 is actually $5.80+ in 2022).
⛽ Gas Price Impact on NYC TLC Drivers?
We don’t have the hard data on what the average NYC TLC driver spends on gas, as spend will vary based on type of car (SUV vs. Hybrid Sedan) and the how much / type of work a TLC driver is doing (long distance trips vs. short trips). However, I can make some educated guesses based on my discussions with drivers and my experience as a fleet manager. Below, we’ve included some illustrative “gas math” to give our readership a sense of how much a NYC TLC driver may spend on gas per day, week, month and year.
The analysis also illustrates how fluctuations in gas prices can impact expenses, as well as the impact related to vehicle type (Sedan vs. SUV). We’ve used the AAA NYC average of $4.14 ((see above) for regular unleaded. The first analysis is on a 2019 Toyota Camry 🚖🚘, which likely does ~25 MPG (miles per gallon), on average, in the City. The analysis below that is for a 2019 Chevy Suburban 🚙, which likely does ~13 MPG 👀, on average, in NYC.
One can obviously mess around with the above figures in multiple ways, but it gives you a good sense of what NYC TLC drivers spend on gas. As you can tell the price of gas has a significant impact on driver expenses and likely the willingness to drive for-hire. For example, some TLC drivers may only want to work on the weekends or evenings when they know it’s busy or switch to food delivery which may not require the same mileage commitment. This may eventually cause a driver shortage if passenger demand rebounds. In addition, passenger demand may suffer as trip prices increase to reflect higher operating costs for drivers (remember there is a minimum pay rule in NYC that was recently adjusted upwards for record inflation).
While many drivers quote how much they earn (aka revenue), in reality they often react to profit (revenue - costs). While a TLC driver may be earning more on the “topline” if his or her bottom line profit is down because of increased cost of doing business (from gas to other inflationary impacts, such as insurance) you’re likely going to see a change in behavior. For example, drivers may seek out Hybrid / EV cars (although it’s noteworthy car prices are also at record highs!) and stay away from SUVs. NYC TLC drivers may also choose to do delivery work instead of for-hire transport, until operating costs decline or overall earnings makes it financially sensible to come back.
Are you a NYC TLC Driver? How much are you spending per week on gas? If gas prices continue to rise, how will that impact how you work? Are you increasingly considering Hybrid or EV options?
AutoMarketplace NYC covers the for-hire transportation industry and automotive news. Check out AutoMarketplace on YouTube ▶️