How Much Can You Earn Driving For Uber

How Much Can You Earn Driving For Uber

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How Much Can You Earn Driving For Uber

How Much Can You Earn Driving For Uber

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There has been a disparity between what ride-sharing companies like Uber say their drivers can earn and how much drivers actually make.

NerdWallet, a startup focused on financial education and empowerment, crunched some numbers to find out how many trips a driver would have to make to earn $50,000, $75,000, and $100,000.

NerdWallet used data from SherpaShare, which allows drivers to track their expenses and income, to figure out how many rides drivers would need to take to earn $50,000, $75,000 and $100,000 in pretax income.

The study examined the 14 largest US markets for three commuter services: Boston, Charlotte, Chicago, Dallas, Denver, Detroit, Los Angeles, Orange County, Phoenix, Salt Lake City, San Diego, San Francisco, Seattle and Washington. , D.C.

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Here’s what NerdWallet has to say about how drivers can make $50,000. It all depends on where and when you drive:

“Driver utilization” for New York yellow cabs is about 50%, which means that for every hour the drivers work, they carry 50% of the passengers. hours every week to earn $50,000 a year. However, based on anecdotal evidence and investigative reports, it is estimated that the average driver usage is less than 50% per trip.

Of course, the research has some contraindications. NerdWallet chose to focus only on UberX and ignored UberBLACK or Uber SUV. And the information from SherpaShare—fare, distance and time data—comes from only a small fraction of all the Uber, Lyft, and Sidecar drivers on the road. But still, it’s interesting to see what drivers have to do to earn a living wage.

How Much Can You Earn Driving For Uber

Sign up to get the inside scoop on today’s biggest stories in markets, technology and business – delivered daily. The founder of Brett Helling is Brett Helling. He’s been a ride-hailing driver since early 2012, completing hundreds of trips for companies including Uber, Lyft, and Postmates. He has since expanded his knowledge on the site, as well as written a book: Independent Work and the State of the Gig Economy Paperback,  now available on Amazon.

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Articles are reviewed by gig economy experts before publication to ensure accuracy, precision and quality. Learn about our editorial standards.

Alexandra Stefgen Zani Merulo Stefgen is a nine-year-old freelance writer. During this time, he wrote full-time, with articles (some about his freelance experiences) in Insider, HuffPost, Adventure.com, Viator, and other publications. Using his personal experience – plus that of his wife, who is an Uber driver – he also created an online course site for freelancers. Since 2021, he’s been working on , where he writes articles to help people navigate the gig economy.

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Over 50,000 drivers join Uber every month – adding to an already large population of millions of drivers in the US alone!

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No wonder so many people choose to become an Uber driver. After all, it’s an attractive job for many reasons, one of which is flexibility.

According to a recent policy report, the average earnings a driver makes after accounting for Uber fees and other expenses is just $11.77 an hour. As such, an Uber driver earns less than 90% of workers!

Uber drivers also experience high turnover rates. That means many drivers are leaving Uber, and the company needs to replace them quickly. In fact, only 3% of drivers stay after one year!

How Much Can You Earn Driving For Uber

What attracts many to driving for Uber is the flexibility that comes with it. Many drivers often use Uber as a side job as opposed to their main income.

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Connecting with Uber often depends on how much you value your freedom and the flexibility of driving with Uber.

However, many Uber drivers also know that their total earnings can vary based on a variety of factors. This includes travel opportunities, costs and demand.

Keep in mind that the numbers we use in this article are used as a general representation of what the average Uber driver salary incoming reports reflect.

The Ridester 2018 Independent Driver Earnings Study is an excellent source of information on how much Uber drivers earn, as it is one of the most in-depth studies of ride earnings reported to date.

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For this survey, drivers reported their own income and gross income and provided screenshots from Uber to support their claims. What the survey showed is quite remarkable.

The survey surveyed 2,600 drivers with 62,583 billable hours, totaling $1,027,585 in earnings. Here are the median hourly earnings for different types of cars:

When it comes to tips, more than 90% of UberX drivers reported receiving no tips of less than $5. With tips added, the average hourly rate for an UberX driver is $14.73.

How Much Can You Earn Driving For Uber

When it comes to tips, the survey shows that drivers report that their earnings are 35.53% higher than they actually are. It also shows that the drivers are not satisfied with their earnings.

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Warning: It’s worth noting that the national average hourly wage varies quite a bit depending on the type of Uber service.

Following the success of the 2018 survey, the Ridester team surveyed drivers to see how the 2020 pandemic affected their earnings.

170 drivers responded, offering insights based on their experiences between March 16 and March 26, when many cities began to go into lockdown. As it turns out, everything looked bleak.

At the end of 2018, drivers earned an average of $14.73 an hour. Before the impact of the pandemic in 2020, this rose to $19.36 an hour.

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However, as the pandemic progressed and businesses took a toll, that figure dropped to an average of $8.79 an hour by March 2020.

SherpaShare’s Smart Driver tools help rideshare drivers discover profitable routes in their city. Since they also offer accounting tools, SherpaShare has information on how much drivers earn after expenses are taken into account.

Of course, this is only part of the travel industry. It seems that in the vast majority of the country, Uber drivers make about $11 an hour.

How Much Can You Earn Driving For Uber

If you’re only making $11 an hour, it’s going to be very difficult to work full-time for Uber. This may not matter much to you if you’re a part-time Uber driver, but remember that there are many ways to increase your income (we’ll get to that later).

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Glassdoor is a great resource for insider information about companies, including Uber. Their reputation system makes it easy for users to report how much they’re making, as well as the pros and cons of working for said company.

As mentioned with SherpaShare, this hourly earnings estimate may only represent a few reports. Also, note that hourly rates may not include driving costs.

In an effort to make up for the low rates, some drivers take advantage of sign-up bonuses and referral codes offered. Using an Uber driver referral code is quite tempting considering that some of them cost hundreds of dollars.

Many speculate that Uber is using this type of marketing plan to compete with Lyft. Currently, Lyft is giving out bonuses up to $1,000.

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It is obvious that the driver’s income is low. So this begs the question, why do so many people continue to ride with Uber?

Drivers make just $4.94 an hour, well below minimum wage. In most cities, UberX drivers don’t make much money.

New York City may be the only city in the country where UberX drivers earn more than $20 an hour on average, data shows. But if you’ve lived, worked, or visited Manhattan, you know that $20 doesn’t go very far.

How Much Can You Earn Driving For Uber

Another interesting thing we learned from the Ridester survey is how riders give. The reality is that most passengers don’t pay for juice at all.

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The survey results show another interesting thing: most Uber drivers are not happy with their income, and based on the numbers above, it’s not that surprising.

If Uber wants to retain its drivers and bring in more, they will have to do a lot. So do drivers stop?

On average, 46.4% of Uber drivers stay with the company for less than a year. 23.5% say they have driven for Uber within a year, 19.2% within two years, and only 11% have been parked.

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