Uber Fees: How Much Does Uber Pay, Actually? (With Case Studies)

July 31, 2020 //

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With Uber, you can set your own hours and drive on your own time — sounds great, right?

It can be, but there are a couple of things you need to keep in mind before you start driving for Uber so that you can set your expectations and know exactly what you’re getting into. These are:

    • How much you can earn with Uber
    • How much commission Uber actually takes from each ride

We’ll give you a look at both of these points in this article to help you decide if being an Uber driver is a good fit for you.

Note: To provide context to this post, we highly suggest you check out our posts on…

  1. How Uber prices are calculated
  2. How Uber pays drivers
  3. The commission Lyft takes from drivers

Additionally, this post goes into detail about how much rideshare companies take from each ride. If you’re looking for hard data on how much drivers earn, then check out our 2020 Earnings and Satisfaction Survey. We found that drivers in 2020 are making 31% more than they were in our 2018 survey.

That aside, let’s jump right in.

Uber Fees: An Introduction

The Uber model is simple: Passengers a pay a booking fee and per minute and mile during their ride. Then, the driver is paid the majority of the fare and Uber takes a cut called a “Service Fee.”

As it turns out, Uber hasn’t been so transparent about fees it’s charging its drivers. In our research, we found that Uber is actually taking a much higher portion of driver earnings than the advertised 25 percent commission.

There are actually a number of additional fees that rideshare companies take. As a result, the Uber booking fee is actually much higher than that 25 percent.

How does this happen? We put together a quick video to easily explain:

The Problem: Lower Prices and Booking Fees

Uber and Lyft both charge a “booking fee” and “safe rides fee” on each ride. These vary by city but are generally somewhere between $1–$3 dollars in the United States and are added directly to the passenger’s fare.

Unfortunately, Uber drivers don’t actually see any of this booking fee in their bank accounts. It goes directly to Uber and isn’t included in the driver’s fare. Even if you’re driving a Tesla or another high end car, they still take a healthy cut. On lower priced rides, this means that Uber is taking a much higher cut than 25 percent.

Further, Uber has lowered its prices significantly over the past few years, hurting Uber driver salaries in the process. For example, in 2013, Uber drivers only had to drive roughly 2.36 miles to make $10 before fees. Nowadays, the average Uber driver has to travel a whopping 4.71 miles to make the same amount of money.

Oh, and that’s before the $3.26 Uber takes.

In other words:

The lower the ride fare is, the higher Uber’s commission becomes. And the higher Uber’s commission becomes, the less rideshare drivers make.

Here’s an infographic that analyzes a recent study of Uber rides in San Francisco. As you can see, after Uber’s booking fee and 25 percent commission are added up, the fee can sometimes be significantly more than one-fourth of the ride that Uber promises.

See the full infographic below:

Uber Fees: How Much Does Uber Pay? (With Case Studies)
Graphic from The Rideshare Guy (

How Much Does Uber Take From Drivers?

Uber Fees: How Much Does Uber Pay, Actually? (With Case Studies)

Despite claiming to take just 25 percent commission on rides, rideshare companies like Uber actually take up to 42.75 percent of their drivers. That’s just for a minimum-price fare ride in San Francisco.

In other words: Short rides are becoming less and less profitable for drivers. For many rideshare drivers in San Francisco (and elsewhere), almost half of a driver’s earnings are lost to Uber.

So before you rush out and sign up to become an Uber driver, we suggest getting a firm understanding of what’ll get taken from your paycheck first.

Lyft Fees vs. Uber Fees

Both Lyft and Uber claim that they never take more than 25 percent commission from their drivers. But as you can see above, this is almost never true.

Uber claims that their drivers take home $25 per hour and Lyft claims that drivers can earn as much as $35 per hour. However, Lyft takes 20 percent of each fare — plus the entire booking fee — while Uber takes 25 percent from each fare.

In a 2015 study into how much Uber drivers make, researchers found that after expenses were factored in, drivers in Detroit only earned around $8.77 per hour, barely above the city’s minimum wage.

The Drain on Your Commission

According to the San Francisco-based study, the median commission that drivers lost out on over the course of 37 rides was around 39.01 percent — much higher than the 25 percent claim that Uber makes.

Further, a majority of the Uber drivers that participated in the study earned less than $10 on a majority of their rides. After you factor in additional automobile and other independent contractor expenses, you’ll quickly see your effective hourly wage decrease — especially on shorter rides.

There are a number of driving-related expenses to keep in mind when driving for Uber too. For example, Uber and Lyft will pay for some of your liability and collision insurance to protect you from professional claims, but you still need to pay for your basic vehicle insurance for the times when you’re not driving for Uber.

Other expenses to keep in mind include:

  • Gas prices
  • Car maintenance
  • Tolls
  • Self-employment taxes
  • Regular maintenance
  • Car washes and interior detailing
  • Getting to the pick-up point

In some areas, it’s also very difficult for drivers to collect passengers safely without infringing on rules surrounding road traffic. Arranging a meeting spot with a customer can sometimes lead to fines for entering bus lanes, or waiting in prohibited areas.

Pro tip: If you get one such fine, reach out to Uber customer service and they’ll help you figure out next steps.

How Much Uber Pays: the Bottom Line

As we outlined above, this Uber booking fee directly results in a higher Uber commission, so drivers will have to work much harder to keep the level of earnings they’ve grown accustomed to in years past.

With this in mind, it’s hard to earn a full-time wage by driving for Uber. Since a five-mile ride earns less than $7 in many cities, drivers will often find themselves making far less than $15 an hour.

However, that’s not to say that it isn’t worth driving for Uber at all. Part-time drivers can still use the platform to supplement the income from their full-time jobs, and those that can commit to longer hours may experience more ride demand now since Uber has decreased fares.

Either drivers are going to have to figure out how to make a ton of extra tips, a change will need to happen within Uber, or drivers will need to find new jobs. Only time will tell.

Did you know that the actual commission Uber is taking is much higher than 25 percent? How do you make up for this cut? Let us know in the comments below!

115 thoughts on “Uber Fees: How Much Does Uber Pay, Actually? (With Case Studies)”

  1. Because you aren’t doing most of the work, and your car and gas aren’t everything involved. Develop the software, database, and marketing to attract customers, manage them, manage and deploy assets, and process the payments. That is a lot more work than you driving around. I’ll wait, let us know when it’s ready.

    • If it were 1 corporate job to every 1 driver then what you say would be true, but the ratio is more like 1 corporate job to every 10,000 drivers so that work you speak of is not changed by the addition of a few drivers. That work applies to thousands of drivers. It’s illogical to say that corporate work is duplicated for every driver. The amount of extra work caused by one driver is tiny so the amount of actual extra corporate work being done is a fraction of a percent for each driver. That is the true cost of the corporate work, especially as time goes on and the software is perfected. Because software is scalable it gets more valuable the more people use it while the amount of work relatively goes down. This is why software is so profitable. Uber and Lyft don’t have to add a new employee every time a driver signs up. The same work applies for 1 or 100 drivers and in some cases thousands of drivers so you cannot compare software development costs to the amount of 1 ride. You can probably compare the amount of electricity the company uses and database space used for that 1 ride and the costs of marketing in that city divided by every driver in that city and I think what you would find is that the amount of work done by the corporation for each ride is still a fraction of a percent. The simple truth is that Uber and Lyft waste vast amounts of money paying CEOs, paying exuberant corporate expenses on things like outlandish offices in order to not turn a profit. Now if you’re talking about development costs being paid for later then you’re getting into the same argument as drug companies needing to recoup development costs for drugs and developing apps like Uber and Lyft, while expensive, are not nearly as expensive as developing drugs. This is evidenced by the myriad of clones on the market and ease of getting a ride share app built for under 100K if you shop around. I say all this as a software engineer who worked corporate for 15 years. You could probably cut 90% of the people out of Uber and Lyft, have the rest work from home, and stop all marketing tomorrow and you would see massive profits, but that isn’t either of their plans. They spend money on employees they don’t need, like every corporation, to buffer dealing with the developers, and marketers strong arm them into marketing expenses that fail. On top of all that they are trying not to make profit so you will never see the driver fees reflect reality because they will just hike them up as high as possible and spend every dollar they make from it.

  2. It’s actually really simple. Just use your own software to find and manage customers and accept payments. Stop leasing their software for their price if you don’t think it’s a good deal.

  3. They should take only the booking fee…. as the driver does the job and pay for gas, insurance and all other cars costs. its is a total rip off..

  4. Refuse any ride that would not be profitable. I know they get mad, btu simply explain to them that if it wasn’t profitable they need to raise the fares. This is why taxi services charge a base fee plus mileage and use advanced logistic software to deploy their assets. Uber threw out the baby and kept the bathwater. Deadheading will always be an issue but uber does a lot to make it worse.

  5. For lyft this is a big fat lie. 46.9 miles 1 hour and 10 minutes. customer paid $68.28 but Lyft took $28.58 and $2.95 for there fees! That is nearly half the damn money! Lyft are big crooks and should be sued! I’ll never do long runs with Lyft again and mainly use Uber they did not take nearly that on a 21 mile trip there fee was $7.95 complete and $2.50 booking.

  6. My bet is their “losses” are equal to what they pay drivers, clearly drivers are worth nothing.

    I don’t see how that is possible …. perhaps while they were busy moving into new markets requiring the necessary changes to the system, a few more people to do it and manage it … but they are now established so that excuse no longer holds water.

  7. What tips? Riders are too cheap to pay tips, they want a LIMO for next to nothing. “I’ll tip on the app” is synonymous with “the check is in the mail”

  8. You Receive – Total
    Base Fare
    Additional Pickups
    Your earnings are always calculated the same way. On every trip you provide, you earn your base fare, plus time and/or distance rates for the length of the trip, plus applicable tolls, fees, surge/Boost, and promotions. To see your rates anytime, see Fares in the menu.
    Trip Breakdown
    You – Trip 1
    Trip Earnings
    You – Trip 2
    Trip Earnings
    Riders Pay – Total
    Rider Price
    Rider Payment
    Includes any booking fees, pass-through fees, contributions, and reimbursable costs such as tolls paid by the rider.
    Trip Breakdown
    Uber Receives – Total
    Service Fee
    Booking Fee

  9. After reading what other drivers have said —- I have to agree and drivers should quit or demand a flat 70% to 75% while the company make only 25% to 30% flat. If they don’t, all drivers quit and they go out of business. Then get drivers to make a new company to be fair for all drivers. In the end, the customers who rider get a better service, and everyone makes money.

  10. All I can say is thanks! I was thinking about doing the Uber/Lyft driving myself, but after reading everything I’ve seen it’s a TOTAL RIP-OFF to all the DRIVERS. Both of these companies should go to a flat 25% to 30% flat and the drivers get the remaining 75% to p% for themself. The drivers are doing all the work and getting ripped off totally!
    It would be a total lost to both companies if the drivers quit driving & insisted on changes and everything is shown on TV by the media. Uber & Lyft could not afford, to lose all their drivers because of their greed. Let them go out of business and start a new business for hard working drivers making 70-75% per ride for themselves. By doing this the drivers give better service, get better $ and work harder. Plus, Uber & Lyft make $ and the riders get better service and less waiting. So, everyone wins at the end.

  11. What’s strange is that Lyft and Uber claim they are losing billions of dollars and are not profitable. Really?

  12. I’ve looked through all of these comments and not one person mentions what they make in tips. ‘

    We get it. Uber gets half to 60% of your fair.

    Minus your tip which you’re not mentioning.

    What did you expect. Try working anywhere else part-time and see what you end up with.

  13. Even when uber/lyft were newer companies and charged lower fees you would have had to been devoid of a brain to drive your newer vehicle for one of these services, its common sense and if you tried to use the service as a fulltime job you’re an even bigger sucker. The wear and tear on your car, the depreciation, the need for more frequent oil and fluid changes, more frequent belt changes, more frequent tire changes, gas, the increased risk for the need to perform major repairs, and not to mention uber/lyft commissions. How can anyone conclude that this is a good idea?…if you feel shafted, you should, because you were but only because you didn’t use your brain…

  14. i drove both at the same time. whichever came in first I’d log out of the other. when I signed on they mustve recently changed it because you couldn’t see the destination. so 15 mins to pickup an they’re going 3 blocks over. complete waste of time and money. I had one guy wanting to go to mcdonalds 1/4 mile away… however, I can see the other side from uber and lyft especially in markets that are over saturated with drivers.
    and to make matters worse all the expenses. and now you have to have rideshare coverage on your auto policy. I stopped doing that when my insurance company started asking questions.
    funny though I was in an uber that was in an accident and the driver didn’t have rideshare insurance… poor bastard had to pay all my bills…

  15. I have a side hustle driving for Uber at nights, and I need to greatly
    curtail (if not stop altogether) my hours at this gig. For the first
    part of the year, I made $20 or more per hour.
    Tonight I went out to drive for over an hour (three rides), and the amount of money that Uber
    makes per ride has gone up significantly. In the past, they would take
    the booking fee, and 25% of the fee that the driver received. That has
    changed largely in their preparation for going public so that they can
    show that they are beginning to lose less money (my speculation). I
    used to receive regular tips, but that has been almost eliminated because
    of the additional fees that Uber charges the rider.

    1st ride

    Rider pays – $28.44
    You receive – $14.71 (51%)

    2nd ride

    Rider pays – $11.31
    You receive – $5.43 (47%)

    3rd ride

    Rider pays – $46.78
    You receive – $23.76 (51%)

  16. I have a side hustle driving for Uber at nights, and I need to greatly curtail (if not stop altogether) my hours at this gig. For the first part of the year, I made $20 or more per hour.
    I have driven for four rides over two nights this week, and the amount of money that Uber makes per ride has gone up significantly. In the past, they would take the booking fee, and 25% of the fee that the driver received. That has changed largely in their preparation for going public so that they can show that they are beginning to loose less money (my speculation). I used to receive regular tips, but that has been almost elimated because of the additional fees that Uber charges the rider.

    1st ride

    Rider pays – $28.44
    You receive – $14.71 (51%)

    2nd ride

    Rider pays – $11.31
    You receive – $5.43 (47%)

    3rd ride
    Rider pays – $46.78
    You receive – $23.76 (51%)

  17. I agree with your conclusions but your math is wrong. You earned $38.00 on a $59.00 fare so: $38/$59 = 0.644 or 64%. You made 64% and the company made 36%.

  18. The car you already have (sunk cost)
    The labor is about as unskilled as you can get (not worth much)
    The smart phone and cell service you already have (sunk cost)
    Wear and tear and is covered under depreciation (double dip?)
    You would maintain your vehicle anyway (sunk cost)
    You would clean the vehicle anyway (sunk cost)

    So, yeah, you are out the $0.50-1.00 gas and depreciation expense per trip.

    Don’t like the terms? Don’t do it. Easy.

  19. Lyft doesn’t even have the driver support for someone to even call them unless they’re reporting an accident (which they will deactivate you if you do that/make a false claim just to talk to someone on the phone). it’s all email only…its ate up!

  20. I drove from July 2017 to January 2019


    I was spending more in operation costs alone than I was profitting in the long run.

    You don’t see this in the moment (because you’re hungry for the money YOU NEED to get by), but wait until you do your taxes…


    They DONT value you as they claim they do. They let abusive riders just be “blocked” from taking rides from you while allowing them to take rides with other drivers. Lyft wont even compensate you if someone pukes in your car now. You get a “oh that sucks…you should try baking soda” response. Even uber has dropped the compensation rate to the point I’d rather pay you $150 to not puke in my car vs the petty $150 they toss you with “Hope it works out for ya” BS comment

    …it costs WAY more to clean puke from a car than $150

    Both of these companies are scum lords.


    They will lure you in with a sign on bonus, but that’s the most money you will EVER make doing it (kind of like how pyramids schemes and MLMs are).

  21. It “doesn’t pay” to drive with Lyft or Uber. If you calculate the true cost of your vehicle properly (purchase or lease costs should also be factored in even if you own it because you will need to buy another ), gas and driving time to the fares should also be accounted for. They (Lyft & Uber) are laughing their way to the bank. These are taxi companies that have figured out the world’s best scam (on the drivers that is). They don’t have employees so no benefits to pay, drivers are “contractors” and have to buy their vehicle and pay insurance, gas, all expenses. It doesn’t add up for you unless you think $5 – $15 an hour is a fair compensation for you taking all the expenses and risk.

  22. I took a passenger from LA to Long Beach and we talked about the cut on the way down so we compared. He paid $52 and I was paid $23. Lyft is taking over 50% now. It was actually pretty sad. What justifies taking over 50% of the fare when I’m doing most of the work, using my gas, and my car? Also we don’t get paid for driving TO the passenger and short rides are always $2.60 even if you have to drive 10 minutes to get there. The fees are now over 50%.

  23. An office and office supplies are used exclusively for work and are part of the employer’s operational costs. A personal smartphone, smartphone plan, car and gas are not used exclusively for Uber. They are costs that existed for the drivers before Uber. Uber estimates what it should pay drivers so that they can cover these costs for the portion of time that they use them to conduct business, not a second more.

  24. Since I was considering to drive Uber/lyft to just make some pocket money, and I have been wondering what percentage take Uber and Lyft from drivers and I got the answer. Now I decided not to drive anymore. My car, my gas, my car depreciation, my car tax, my car maintenance. Uber and Lyft provides only plate farm which is great but their cut is also way great for them, but not for drivers.

  25. AAA figures vehicle expenses to be 60.8 cents per mile, so uber drivers net about 30 cents per mile on their vehicle plus the $10 p/hr of driving fares and an additional $1.50 for each ride. How much you make depends very much on how much time and distance you drive around without a fare. Any drivers care to take a guess at how many rides you can take in an hour? How far do you drive in an hour?

    Quote from AAA:
    “The average cost rose 1.17 cents to 60.8 cents per mile, or $9,122 per year, based
    upon 15,000 miles of annual driving. “Many factors go into the cost calculation of
    owning and operating a vehicle,” said John Nielsen, AAA Director of Automotive
    Engineering and Repair.

  26. “Understanding it is your car you are using, and your time you are “working”; but”
    That’s the entire thing, right there. How easily you dismissed all of that. Whatever type of office job someone works, they are not supplying the office, the lighting, the climate control and the furniture, the computers, the copy machines, the printing paper, etc.

    The Uber/Lyft driver supplies:

    1. The car.
    2. The gas.
    3. labor (driving)
    4. Smart phone.
    5. phone plan to access the app and required GPS nav tool.
    6. depreciation of the car due to mileage.
    7. Wear and tear on the car from passenger traffic (scuffs, spills and tears, etc).
    8. Maintenance of the vehicle.
    9. Cleaning of the vehicle.

  27. when Uber states it takes only 25% of the fare then that is what you expect. Basically you are paying to use the Uber name. But, when they take 40% without your knowledge then there is a problem. After reading the article and comments I wouldn’t bother driving for Uber or Lyft

  28. Thanks for the info. I was seriously considering driving for Uber and Lyft. But, was researching and crunching numbers to see if it was worth the time, expenses and revenue. It appears it isn’t.

  29. I’m having a hard time with understanding the rationale of all the workers comments that Uber/Lyft etc… are taking 40-70% of the amount the are charging the riders. Understanding it is your car you are using, and your time you are “working”; but, take any other job, literally, ANY other job in the world. Would you actually expect that you should/would receive 50-90% of the cost of doing business? Uber has a vast network of clientele, and they offer you an opportunity to tap into that network to make money. If I make 0.5% of what the CEO of my company makes, I would be a rich man. So, you’re not likely to get rich working out of your car and setting your own hours – big surprise. If you want to work out of your car and receive a set rate, get a job as a taxi driver. If I was making 25-75% of the amount of money my work generates for my company I would me a millionaire many times over. But that’s not the way the world works, nor should it. If I wanted to be a car driver and someone was going to give me $3-4 dollars for every mile I drove (shoot, if they were going to give me half a dollar for every mile I drove) I would count that as lucky, and a decent wage for a car driver.

  30. Driving for both Lyft and Uber. Both companies are taking up to 70% of earnings (have screenshots proofs).
    I also managed to have a luxury and very rare version of Volkswagen ($MSRP46K), that meets every possible point of their criteria, besides the brand name. Initially i was told about these points of qualification, but once i sent them my car pictures, no one could explain me why it’s not qualifies for higher rides. However, during my latest visit to Redondo (Calif.) GL Hub employee (Corey Ray) that it’s not approved for higher rates because it’s just a Volkswagen. Should I say, this dude didn’t even looked at my car and its interior. All they are replying are dumb messages, and it really feels they all there have some sort of brain issues. Instead of answering a question, they might discuss on their own about some regulations and completely ignoring given questions.

    Shortly speaking, after calculating all expenses to drive for Uber or Lyft, certain hours I was paying to Uber or Lyft to drive their customers (net income up to -6 $/hr). Most of the time, while I was earning some immediate funds to pay my bills, average NET pay equals to 12-13 $/hr. Usually it is even less than this, but Uber & Lyft wants you to miss calculate your expenses (their is already a lawsuit against Uber by collective Drivers for confusing and lying drivers about their actual earnings). If you have any accidents or tickets or damages, your income depreciates as well.

    So I guess this is not a secret to anyone, that they don’t care about drivers (as they look further to driverless cars). Drivers are temporary and annoying waste to these both companies (no matter what they say).

  31. lyft drivers need to get together and negotiate with the corp. the art of the deal style.. cuz that is bs 25% is reasonable..

  32. Drivers gross/net 40-60% and this doesnt account for expenses like gas, insurance, car depreciation

    The latest trick they are using is paying drivers the same or a little more and price gauging the rider by jacking up the rates 50-100-200%

  33. i drove for lift since September 2017. I averaged most of the time between 100 to 160 trips per week also my rate for 5500 rides is about 4.96 with 92% acceptance rate,..I work very hard without taking a break. The commission that this company is taking is shameless. My bread and butter should be my so many share rides haha but Lyft is getting most of the fare by taking 40, 50 and 60% and also from the total of short rides. Fortunately in PA and NJ Lyft and Uber make millions every day from our hard working day but unfortunately Lyft and Uber do not share with us in a fair way . They should take max 30% but they do take most of the time 50% and that is slavery for the kind of work we do. Also the BONUS Lyft offer to me of aprox 100, 200 or $300 per week are very HARD to get, specially for a full timer who need to work over 50 or 60 hours of work. Also if you work with Lyft, remember to add all the work hours you do when you are in destination mode!!! That extra destination hour of work would definitely and realistically show you total hours per week much more that what the app show you, and that mean you are making much less per hour! I understand that these companies they use the bonus offer to tell us that we can make much money but realistically most drivers can not make the $200 or $300 per week. I would prefer that Lyft and Uber would just give as a better commission for rides shortest than 1 hour and maybe less for longer rides. Of course, the longer rides without a ride back to return is an other problem that could be easily solve but these companies do not care to solve! Uber and Lyft can still keep the incentives bonus to make sure there are more drivers at need it hours or more busy demand!!!!

  34. Arbitration is in no way less expensive for the employee. Credible labor lawsuits cost $0 upfront when an employee hires a legitimate lawyer.

    Big companies like Uber are exclusively concerned with money. It is a sad fact of life, but “expensive” lawsuits are the only thing that can possibly provide meaningful consequences for bad behavior by corporations.

    Mandatory arbitration prevents the type of class-action lawsuit that is the only realistic way to improve poor working conditions for employees.

  35. Understand that arbitration is only the required first step. It does not preclude lawsuits it only precedes them. It is a less expensive way for both parties to settle the matter and often ends up being faster and better for the both the plaintiff and the defendant.

  36. You’re missing the most important thing McDonalds offers benefits like health insurance do you realize how much of a big deal that is, some people work there for that reason alone, I would never work for either one of these companies abusing my vehicle in so many way from putting miles on it to who I might pick up get a real job.

  37. I just finished my first 10 rides each with Uber and Lyft, and did a list of the percentage they take vs. what the customer actually pays. Uber ranged all the way from 30% up to a breathtaking 70%, while Lyft ranged from 30% up to 52%. I can tell I will not be doing this often or very long with them flaunting they only take 20-25%, when that is not at all the case. I couldn’t even get a ride in the 20% range. #Maine

    • I definitely feel your pain Rebecca. I signed up with Uber just over three weeks ago. When I saw how much they take I signed up with Lyft to see if it would be any better. Lyft actually turned out to be worse. I get pinged for a rider 20 minutes away from my location with Lyft a lot and they do not give anything extra for the distance to pick them up like Uber does. One thing I wish both companies would do is to heavily promote the tipping of drivers. My acceptance rate with Lyft now is only at 39% but that is because I do not accept if it is 13 minutes or more away from me. I live in Worcester County and this area only pays .75 per mile and .0875 cents per minute. I know in Portland Maine it is .79 per mile and 11 cents per minute. Waterville is .945 per mile and 12 cents per minute


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