Dont Forget Driver Expenses
It is essential to remember to factor in your driver expenses when trying to estimate your earnings.
After a driver has given an Uber ride, they must calculate the hidden cost of the ride.
Often drivers overlook these expenses, which then comes back to bite them later down the road.
Some of the biggest expenses you will incur are:
- Taxes: including a 10% Self-Employment Tax with the IRS
These types of expenses, again, can vary widely based on a bunch of different factors, including what type of car you drive, what city you drive in, age, and driving record.
Given that fact, well summarize these expenses and speak in broad generalities.
Its a general rule of thumb for the rideshare industry to budget roughly 20 percent of the total ride fare amount for ride-related expenses.
In our example, that would mean: $10.24 x 0.8 = $8.19
At that rate hypothetically speaking, after factoring in pick-up, drop-off, and dead time the UberX driver could estimate to make somewhere in the neighborhood of $15$20 an hour if they were to get two similar rides each hour they drove.
Bottom line:
How Much An Uber Driver Can Make In Atlanta
Earn at least $2,340 in Atlanta when you complete 200 trips or deliveries.
Atlanta drivers we spoke to about what its like driving for Uber in Atlanta said they can earn $15-20 an hour as UberX drivers, but up to $30-40 an hour as premium drivers.
Of course, the only downside of this is Premier vehicles are typically more expensive vehicles, with increased vehicle costs. You can check out our Uber vehicle marketplace if youre looking for a vehicle to drive with Uber and Lyft.
One thing to keep in mind as an Atlanta rideshare driver? Atlanta is home to five major sports teams, including the Braves , Hawks , Falcons , Dream and Atlanta United . What does this mean for you? Almost throughout the entire year, theres likely some sort of sporting event going on in Atlanta!
What About Uber Surge Pricing
As a driver, Uber surge pricing is your new best friend. Surge pricing basically happens when there is high passenger demand and low driver supply. During busy times like Friday and Saturday nights and commuting hours, you will typically see red surge on the map.
Any ride you give on surge will have a surge multiplier, and youll receive the surge amount multiplied by the regular fare. So if we look at the ride from above and add a 2.0x surge multiplier, what happens to the driver payout?
- $21.12 = $10.56 x 2.0 surge multiplier
As you can see, the drivers income doubled in this example, but the driver doesnt have to do any additional work. Fortunately, a 2.0x surge is pretty common during busy times.
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How Much Do People Make With Uber
According to a study conducted by Earnest, a loan company, their Uber statistics shows that drivers reported earning an average of $364/month. One thing to bear in mind is this survey does not account for how many hours these drivers were actively driving on the app.
Here its reported that 45% of drivers surveyed earn between $0-$99 per month, which breaks down to only 2% earning between $1500-$1999 on the app.
What drivers actually earn is very hard to pinpoint. Some would say their earnings before expenses , while others would report earnings after expenses.
Earnings also vary by state/location. Each driver is given a rate card for what to expect in their area as far as the base rate, per mile, and per minute earnings. Any tip received within the app or in-person is 100% the drivers to keep.
Global Rideshare Market And Projections
Since Uber left China in 2016 when Uber bought Chinas rideshare giant Didi. Uber also got stake in the company in the deal. Ever since the change the US is Ubers largest market for passengers, with India following behind. In 2018, it was estimated Uber in India fielded 1.5 million drivers. This means that between the US and India, Uber has roughly 3.5 million drivers in those two countries.
Since Uber left China, Latin America is turning into a powerhouse for the company. Uber plans to expand rapidly throughout the region. Could Mexico overtake the US in number of drivers? Its unlikely the country of Mexico could, but the Latin American region, with several large, populous and transit-friendly cities could edge out the US over time.
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Can A Uber Driver Be Under The Influence Of Drugs
Uber does not tolerate the use of alcohol or drugs by drivers using the Uber app. If you believe your driver may be under the influence of drugs or alcohol, please have the driver end the trip immediately. Commercial vehicles may be subject to additional state government taxes, which would be over and above the toll.
Uber Driver Alternatives In Chicago
Dont feel like driving around people in Chicago? Youre in luck with delivery company Relay! Relay Delivery is available in Chicago and focuses on food delivery. One big difference about Relay from Uber Eats? Relay drivers are paid hourly!
Do you drive in Chicago? What tips or strategies do you have for Chicago-area drivers?
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Additional Key Uber Statistics
Pay and flexibility are the two most important things to rideshare drivers based on a survey RSG conducted.
After expenses, Uber statistics show that Uber drivers reported earning $13.47 per hour, which means that on average, drivers report that their car is costing them over $6 per hour to operate.
Drivers who reported equal driving for both Uber and Lyft were at $18.15 per hour, which could signal that only driving for Lyft may not be such a good idea anymore.
53% of Uber drivers say that the company needs to do more for driver safety and 54% of Lyft drivers saying the same thing. So its no wonder that 22% of drivers reported carrying some type of weapon while driving, even if its against Uber and Lyft policies to do so.
Despite there being numerous rideshare insurance options, nearly 40% of drivers still dont have rideshare insurance.
54.9% of drivers reported they do have rideshare insurance while 39.3% said they do not.
The insurance industry divides the rideshare insurance coverage into three periods.
- Period 1 occurs when you have the app turned on but havent accepted a ride.
- Period 2 occurs when youve accepted a ride and are en route to pick up the rider.
- Period 3 occurs when you have the rider in your car.
Rideshare insurance cant be the only coverage on your policy. Its typically an endorsement or add on for most companies. Not every insurance company has rideshare insurance as an option, but there are a few that do.
How Much An Uber Driver Can Make In Los Angeles
Earn at least $2,480 in Los Angeles when you complete 200 trips or deliveries.
How much you can earn in Los Angeles partially depends on how dedicated you are as a driver as well as what strategies you put into practice.
On weekdays, a good early bird strategy is to be close to the hill that divides West L.A. from the San Fernando Valley by 5 am. If you catch an airport run, you can get back to West L.A. in time for the morning rush hour.
As with most markets, there are more airport runs on Mondays, Tuesdays, Fridays, and red-eye flight drop-offs and pick-ups are plentiful on Sunday evenings from LAX.
Of course, weekends are the most lucrative time to drive for either Lyft or Uber in Los Angeles. Early in the evening, you can catch rides from the San Fernando Valley, South L.A., or Silverlake, going to West L.A.
During busy hours, if you are a top driver, you can make $40 GROSS per hour driving Lyft and Uber in Los Angeles. However, its more reasonable to expect to make $15-$20 GROSS per hour when driving full time for Lyft and Uber.
As you learn your way around the city, youll become more efficient and should be able to earn up to $25 per hour or more consistently. Also, part-time drivers who earn the most tend to drive during the busiest weekday hours or weekends only. So dont expect to drop the kids off at school and earn a living doing rideshare in L.A.
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How Much An Uber Driver Can Make In Nyc
In 2019, Venessa Wong from BuzzFeed reported that drivers in NYC were earning more than $16 per hour.
This pay was calculated after a cap was added on the number of rideshare vehicles allowed on the roads based on demand. New York City also set a pay floor of $17.22 an hour, after expenses, for ride-hail drivers.
Before these changes, it was estimated that driver pay was closer to $14.22 an hour in NYC.
How Much Uber Drivers Make In Specific Cities
How much can you make with Uber? It depends on your city, but basically, the busier or more tourist-friendly your city is, the more chances you have for earnings.
Something to keep in mind when looking at earnings by city is also the cost of living by city. Heres a chart showing the cost of renting an apartment in a handful of major cities in the U.S. from 2022:
If drivers are working full-time in any of these markets, the cost of living is an important factor in making sure they can earn enough to make a living and cover basic expenses.
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Uber Vs Lyft Vs Public Transit Costs
Its fairly clear that the cost of taking an Uber or Lyft is significantly more expensive than taking public transit, even before leaving a tip for the driver.
When they first started out, Uber and Lyft claimed they would work well in conjunction with public transit. They would be the first and/or last steps, either taking passengers to their bus stops or to their final destination if the transit system didnt take them that far.
However, people seemed to prefer taking an Uber or Lyft over taking public transit. Sometimes the reasoning is because of convenience. In some metro areas, it takes several bus transfers to get from one location to the next and may include significant walking portions.
Some would consider the added cost of an Uber or Lyft ride to counter the inconvenience of taking multiple buses at a cheaper rate.
The costs likely havent varied greatly in the last two years.
When looking at car ownership statistics, the rate of car ownership in the U.S. continues to trend upwards throughout most of the last decade. According to information provided by Value Penguin, During this past year, 93.3% of households reported having access to at least one vehicle.
Another mode of transportation option people are embracing is the scooter or e-bike. These options provide on-demand service at a low cost. If someone is looking to go less than a mile but doesnt feel up to walking it, an e-bike or scooter is a great option.
Use A Mileage Tracking App
To get the most out of your tax deductions, youll need a mileage tracking app. In our mileage tracking app review, we cover the best free mileage tracking apps that will accurately record you mileage while you drive for Uber and Lyft, so you can just pull up the data and plug in some numbers during tax time. Easy!
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How To Make The Most Money With Uber
You might be wondering, is there a way that you can earn more as a driver?
Well, we looked at what drivers had to say, and one simple tip came up the most often:
Drive during peak hours!
When theres a high demand for rides, the app sometimes increases your fare, with a surge multiplier, like a 1.3x surge multiplier. So, you can earn more.
Many drivers on websites like Reddit state that if you want to make more money as a driver, then you need to drive during peak hours.
Heres what drivers have to say about this:
- Drive during peak hours holidays, nights, special events and weekends. Check your local citys convention center and visitors bureau for events that you might not know about.
- I usually drive around the times bars close: midnight 2 or 3am, and occasionally during afternoon rush hour, when Ill sometimes get surge pricing or long trips. Weekends are decent too.
- Once youve driven for a week, youll receive a weekly summary, which will show you a clear breakdown of the busy hours in your city, and also will show you what other drivers are making in that week compared to you as well as the number of hours they are working and their average wage for the week. In terms of bettering your pay, look into the hot spots around your town, popular restaurants, clubs, etc.
So, do some research into popular restaurants and bars in your area where people might want rides. And, keep up to date with events in your area.
How Uber Calculates Payments
You may be wondering How much does Uber pay?but in order to find the answer to that question, you need to know the way Uber calculates payments.
Depending on the service, payments are calculated a little differently. More specifically, the amount you will end up earning depends on where you drive, how often you do it, and when you drive.
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How Much Do You Make With Uber: New Changes
Upfront pricing has been the new norm for earnings for drivers in California since 2019, and Uber announced in 2022 that they are rolling out this feature in other markets as well.
With upfront pricing, drivers will start seeing what the estimated fare will be as well as pickup and drop off locations, which have previously been undisclosed to drivers before acceptance. Also with this change, fares will be based on base fare, time and distance rates, along with real-time demand. Essentially, upfront pricing decouples the price drivers are paid from what the passenger pays.
Learn more about upfront pricing: Uber Announces UPFRONT PRICING For DRIVERS And Pay Changes!!
Because of these changes, its also going to give drivers different priorities while on the road. With upfront pricing, Uber is also rebalancing the rates, making shorter rides more profitable and longer rides less so.
If youre in a smaller market, you will tend to have longer rides with longer pickup times than those in larger markets. So, this rebalancing may hurt some drivers and help others. However, youll need to test out your market at different times of day or night to see what times and locations are best for you.
In the video below, we had RSG contributor Joe try out upfront pricing/upfront fares. Here are his thoughts: My Experience with Ubers UPFRONT PRICING for Uber Drivers in Minneapolis
Sign Up Bonuses For Chicago Lyft And Uber Drivers
Be sure to keep an eye out for any bonuses or guarantees that are being offered. As of the writing of this article, the offering for new Uber drivers in Chicago is Earn at least $2,660 in Chicago when you complete 200 trips or deliveries.
As of the writing of this article, the Lyft guarantee for new drivers depends on the city in which you live. Check out what you can make in your city using our Lyft referral code.
Offers from Uber and Lyft vary, so be sure to check whats available when you sign up and pay attention to the terms and conditions of any guarantees or bonuses.
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How Does Uber Pay
Drivers are paid once a week, or they have the option of cashing out their earnings daily for a small fee.
But how is pay broken down for drivers?
Lets say a passenger takes a ride from Santa Monica, CA to LAX and the ride takes 26 minutes and comes out to 8.5 miles. In order to calculate your payout, well need the current rates in Los Angeles, which are $0.28/minute and $0.80/mile. Additionally, theres a $3.00 marketplace fee the passenger pays that goes straight to Uber. So the cost to the passenger looks like this:
$7.28 = 26 mins. X $0.28/min
$6.80 = 8.5 miles x $0.80/mile
$3.00 Booking Fee
The total fare paid by the passenger for this ride will be $17.08. But the driver will receive a different amount. In order to calculate the drivers cut, we need to subtract the booking fee and Ubers commission .
$14.08 = $17.08 $3.00
$3.52 = 25% x $14.08
$10.56 = $14.08 $3.52
As you can see, the Uber passenger paid $17.08 for this ride, but the driver ends up with a payout of $10.56 for about 26 minutes of work.
However, Uber is also trying upfront pricing in several markets. The main takeaway is upfront pricing decouples the price drivers are paid from what the passenger pays.
How Much This Philadelphia Driver Spends To Be A Rideshare Driver
Kelly C. is a Philadelphia rideshare driver who has been tracking his income and expenses studiously for the past few years. Kelly actually created a detailed spreadsheet that helps him track everything from the number of rides he does and the time he spends online, to the mileage and how much the trip costs.
He fills in the spreadsheet weekly to come up with monthly summaries like this one below that includes how much each ride pays on average along with how much he makes per hour:
Kelly uses TripLog to track his mileage and Quicken to track his rideshare expenses then he adds this data to his spreadsheet.
My biggest expenses is gas but I use GasBuddy which gives me a 5% credit at Sears which I use for oil changes and other non-complicated auto expenses. I work Wednesday through Sunday usually in the afternoon and use the destination filter at times.
Looking for more ways to save money at the pump? Check out our top recommendations for the best gas apps to save you money!
Having a spreadsheet system can be a great way for drivers to have a backup record of their income and expenses all in one place. In November 2019, Kelly earned a gross income of $4,909 by driving for Uber and Lyft. He drove 4,722 miles and his expenses included:
- Car Depreciation: $326
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