People say ride sharing pay is awesome. What can you really earn though? To make sense of it, we created a guide to Uber driver pay for you.
What Do Uber Drivers Get Paid?
Uber often mentions that drivers make as high as 25 dollars an hour. In some cases, some drivers have seen $50+ per hour. That might sound pretty sweet, but hold on a minute!
It's worth thinking about a few factors like cost. Long term expense grows. One thing most drivers don't mention is the cost of driving, per ride. Sure, you might be lucky enough to hit that $25 an hour mark. What if it's costing you $15-20 to drive for that hour though? Let's take a look at the costs involved, and figure out real pay ranges.
What do Uber drivers make after expenses?
A few studies show drivers making $8-12 per hour. It depends on the area you live. You can earn a bit higher, like $15-18 per hour if you work longer hours per week.
It seems it takes a bit of added effort to reach the $25 an hour mark or beyond. You will need a game plan to target times and days with higher fares. It isn't a breeze, and will take some tough work. Don't worry, you can make it happen!
These are a few questions most drivers ask:
- How Does Uber Adjust Fares?
- How Does Surge Pricing Affect Pay?
- Does Uber Cover Any Expenses?
How much do Uber rides cost?
To explain driving costs, let's take a look at how Uber charges riders. They get charged based on 2 simple factors:
Time + Distance
Riders pay a fee. This covers driver background checks and certain other expense for Uber.
The final factor is Surge Pricing. This happens with low driver numbers and high demand. The fare gets multiplied by the surge price. It depends on the time and location. One thing is certain, you will love the pay when things surge!
Here's what that looks like:
(These numbers are an example) Your City $0.20 per minute Fare $0.75 per mile Rider Fee $1.00 Surge 1.5 Distance 10 miles Time 20 minutes
($0.75 x 10 mi) + (20 min x $0.20) + $1.00 rider fee = $12.50 rider fare
Drivers earn a percentage of this fare. Uber takes a commission of ~25% plus the rider fee, so the driver gets ~75%.
$12.50 - $1.00 x 0.75 = $8.62
( ( ($0.75 x 10 ) + (20 x $0.20) ) x 1.5 ) + $1.00 = $18.25
What You Get Paid:
$18.25 - $1.00 x 0.75 = $12.93
How much are normal Uber driver expenses?
Costs don't seem bad at first, but they grow as you drive for a living.
- Most people pay ~$75-150 per month to insure their car.
- Car loan.
- Pay close attention to tolls! They add up quick. Work near major tollways and use them all the time? You might pay over $100 per month in tolls.
- They say time is money. Well gas is money too. Money out of your pocket! Expect your fuel costs to increase 25-50% to start.
- Car care.
- Oil changes, car washes, tune-ups, brakes…it gets expensive. Budget a minimum of $1,000 per year to maintain your car.
Read the detailed list of Uber's car requirements. Find out what expenses to plan for, and what they might cost!
How Do Uber Drivers Get Paid?
The way Uber pays drivers is pretty nice. It's a per week period (Monday to Monday). This alone is a good reason for becoming an Uber driver. Even with a full time job, it sure helps having an added paycheck per week. If you'd prefer other ways, Uber does have other options. Uber has two main payment methods for drivers.
- Direct deposit.
- Instant Pay (debit card).
Direct deposit is the normal way drivers get paid. You can choose Instant Pay if you'd like. It will let you cash out 5 times per day! That's pretty handy.