Tip for car maintenance
How Much Do Uber Drivers Make?
Uber's hail service is the largest in the US and one of the most popular in the world with a market cap of over $ 75 billion.
Driving people comfortably through the city in their own vehicle sounds like a great sideline to many. Over the past few years, anyone looking to make pocket money on the weekend flocked to the app to become a part-time driver. Because of this, there could be an oversupply of Uber drivers after a few years.
Exactly how much do Uber drivers make now and is it still as good as a source of extra income as it was before?
How Uber Works for Regular Drivers and Uber Eats Drivers
To understand how Uber works for drivers, let's first examine how Uber calculates driver revenue.
It all sounds flexible, and you deserve as much time and effort as you invest. However, there are several hidden costs that can negatively impact a driver's income without them realizing it.
First, in-app promotions apply, but they may be subject to restrictions that are entirely at Uber's discretion.
Next, overhead costs like gasoline, tolls, auto insurance, and routine car maintenance are not covered by Uber. For example, if one day your car breaks down on the motorway, you'll have to pay your own maintenance bill.
Payment: Uber vs. Lyft vs. Traditional Ride-Hailing Drivers
Like many third-party apps that involve vehicles, Uber pays a portion of the fare.
- For its cheapest carpooling, UberX, Uber is making a 20 percent cut.
- For Uber Black, its premium luxury ridesharing, Uber takes over 25 percent.
- For Uber Eats deliveries, Uber picks up 30 percent, a decrease of 35 percent after much criticism from the hotel industry.
Confused about the types of trips Uber has? Check out our guide on the different types of rides Uber offers so you know which type of ride is the best next time you need to go home with your friends.
In comparison, its main competitor Lyft is reducing all trips by 20 percent. Customers have the option to tip their drivers and tips are placed directly in the driver's pocket.
How Much Exactly Do Uber Drivers Make?
We've talked enough about Uber's payout model and the hidden costs that come with it. Now is the time to show how much Uber drivers can make.
Uber drivers on the internet have stated that they make an average of $ 8 to $ 13 an hour. In big cities like Chicago and New York, that number doubles to around $ 16-25 an hour.
Recently, Uber and Lyft also launched a new "Prop 22" benefit program for their US drivers. The program basically requires that their drivers receive 20 percent more than the minimum wage in a pick-up city plus 30 cents per mile for spending.
For example, in California, the minimum wage is $ 14, so Uber drivers must pay at least $ 16.80 per hour plus the cost per mile. Lyft has also introduced a similar benefit program.
Statistics from the US Bureau of Labor show that taxi drivers and chauffeurs make about 80 percent of the earnings of Uber drivers. If you do the math, it averages $ 6.40 to $ 10.40 an hour, or $ 12.80 to $ 20 an hour in major cities.
This isn't as bad as you probably imagined, but as the hours pile up you will see a huge gap between both incomes.
The advent of hailstorm apps didn't exactly destroy traditional taxi services, but it actually lowered the wages of traditional taxi drivers. Given Uber's continued dominance in the global hail shipping industry, the saturation of Uber drivers in the market is likely to put more pressure on the traditional hourly wages of traditional taxi drivers and chauffeurs.
Does Uber pay its drivers fairly?
Does Uber compensate its drivers fairly?
Honestly it is it's hard to say . Whether or not you can earn a sustainable income as a rideshare rider depends entirely on how long you work, the distance you cover, and how often the Uber app is used in your area.
To maximize their income, it's common for Uber drivers to use other hail and / or grocery delivery apps like Lyft, DoorDash, and Postmates at the same time. You can drop an Uber passenger off at 5:10 PM, then pick up a DoorDash order nearby at 5:20 PM.
In terms of worker protection, Uber drivers are considered self-employed, so there isn't much for them when it comes to employee benefits. In contrast, taxi drivers employed by traditional hail shipping companies are entitled to basic benefits such as insurance.
However, this situation is changing.
Uber recently introduced a health grant for its drivers, where drivers can apply for a grant of up to 100 percent. However, drivers must submit documentation to demonstrate that they are the primary policyholder of an insurance plan, and the scholarship requires an average of 15 active driving hours per week for drivers to be eligible. Lyft does that too.
Be an Uber driver
Working as an Uber driver certainly has its own perks, with flexibility being the biggest draw for many who want an extra stream of income. The latest benefit program and health insurance subsidies could make the job more attractive to those interested.
If you're looking to sign up as an Uber driver, weigh the pros and cons and write down the hidden costs before you begin.
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