Pro Tip # 7 – Getting gas near wholesale prices makes a big difference

Business is a game of profits minus expenses; when the average driver has to refill after every day or two getting the best deal possible is critical. Fuel is the perfect example where saving a few cents per gallon can equate to a significant increase in profits. This is essentially free money if a driver plays it right.

The worst place to buy gasoline is at some random Shell or Chevron station. Arco is definitely better. The best by far is buying at near wholesale prices like most businesses do. Costco is the best place in the bay area for drivers.

Costco requires a membership starting at $55 per year.

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Chevron on the left, Costco on the right; that’s $0.46 difference per gallon. Conservative estimates on a weekly and annual basis.

$ diff/gal # of gal $ diff/fillup weekly diff* annual diff** # rides*** # rides****
$0.46 12 $5.52 $19.32 $966.00  241.5  120.75
$0.30 12 $3.60 $12.60 $630.00  157.5  78.75
$0.15 12 $1.80 $6.30 $315.00  78.75  39.375
  • assuming 3.5 fill-ups per week @ 12 gal per fill-up
    ** assuming 50 driving weeks @ 12 gal per fill-up
    *** # of rides $4 profit. Attempt to estimate average SF trip using uber 1.0x.
    *** # of rides $8 profit. Attempt to estimate average SF trip using uber 1.0x.

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Uber’s highest level of reward is 120 trips for $500. In conclusion, not buying gasoline at the lowest possible price is losing out on free money. From our numbers above and Uber’s promo, the total amount lost is $966 and a $500 bonus, totaling $1466; thus worth more than 1 week of work.

 

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