Content of the material
- How Much Do Uber Eats Drivers Make?
- How Much Do Lyft Drivers Make in Las Vegas?
- Explore More within Gigworker
- How Uber Commission and Fees Work
- More than 25%
- Ways Uber Drivers Make Money
- Bonuses & Promotions
- Cancellation Fees
- Uber Driver Percentile Pay by Location
- What are Some Common Expenses for Uber Drivers?
- Vehicle Maintenance
- Car Payment
- Car Insurance
- In-Car Amenities
- Instant Pay Fee
- Health Insurance
- Other Benefits
- Frequently Asked Questions
- 1. How Much Do You Make A Day With Uber Eats?
- 2. Can You Do Uber Eats Full Time?
- 3. How Much Can You Make With Uber Eats In A Week
- A Shortage of Uber Drivers
- Good To Know
- How Much Can You Actually Make on Uber?
- Uber Earnings
- Earn passive income
- Money Lessons Learned
- Making Money on Uber FAQ
How Much Do Uber Eats Drivers Make?
Before we dive into the topic of how to make more as an Uber Eats drivers, it’s worth first addressing how much Uber Eats drivers make to begin with.
According to our research, Uber Eats drivers make around $3.50 per delivery.
But, by the time you factor in delays, wait times, and the other expenses that Uber Eats drivers incur as a result of being an independent contractor, the factor breaks down to roughly minimum wage in various cities.
This is similar to how much Uber drivers make.
Since this post is how to make more when driving, check out our in-depth earnings breakdown, How Much Do Uber Eats Drivers Make, on our sister site Ridester.com.
How Much Do Lyft Drivers Make in Las Vegas?
The average Lyft driver will charge about $2 a mile in Las Vegas. This brings their income to around $750 per week, a shade higher than what Uber drivers make in the same area.
Lyft does offer a sign-up bonus of $300 for anyone interested in getting their feet wet with the ride-sharing service.
Lyft drivers’ hourly wage usually exceeds Uber drivers by a few dollars. Lyft pays their drivers more money, directly reflecting the rates they charge riders to use its service.
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How Uber Commission and Fees Work
It’s not that difficult to understand the way Uber fees and commissions work.
For instance, when it comes to fees, the passengers are the ones who have to pay a booking fee, as well as per minute and mile fee for their ride. After the ride, you as a driver would be paid the majority of the fare you made. And you only get “the majority” and not all of it because Uber is going to get their cut, respectively the “Service Fee”.
More than 25%
The amount that Uber says it charges their drivers is 25%, but it actually takes a little more than that from their earnings. This is all due to the fact that some additional fees are taken by rideshare companies, resulting in a higher percentage for the cut.
In the past, Uber drivers had to drive around 2.36 miles to make $10 before fees, but nowadays, the prices were lowered by Uber. As a result, a driver will have to drive 4.71 miles to make the same amount of cash.
Also, there is the booking fee and a safe rides fee for every Uber ride, which is between $1 and $3. These fees vary by city, but the driver cannot actually see these in their bank account, as this goes directly to Uber.
So, the commission taken by Uber is higher if the ride fare is lower, meaning the rideshare drivers would make less. So, in the end, even if Uber claims to take 25% of its drivers, it will actually take up to 42.75%. If you are doing short rides, then it won’t be too profitable for you.
>> Read More: Loans for Uber Drivers
Ways Uber Drivers Make Money
Now, let’s take a look at the different ways Uber drivers make money.
Uber drivers receive a base fare plus compensation for how long and far they’re driving. According to the Uber website, how much you make per mile or per hour varies by city. Fares can change over time, too. For example, in 2019, Uber dropped rates in Southern California from $0.80 per mile to $0.60 per mile. This led to protests and strikes in California.
Riders can tip their driver during or after their ride. Tips vary greatly, and most riders don’t tip. A 2019 study from the National Bureau of Economic Research found that only 1 percent of customers always tip and around 60 percent never tip. The average tip (of those who do tip) is $3. Female drivers are more likely to get tips than male drivers.
Ridester’s 2020 driver survey also found that tips added just $1.31 per hour to a driver’s earnings in 2020.
Bonuses & Promotions
Uber offers different bonuses throughout the year that enable drivers to earn extra money. An example bonus on the Uber website states, “earn $30 extra for completing 20 trips this week.”
Sometimes Uber runs driver sign-up promotions that give new drivers a $500 to $1000 bonus for signing up and completing 50 to 100 rides in their first month. Sign-up bonus availability depends on the time of year and where you plan to drive.
Uber drivers must wait a certain amount of time for the rider to show up. If the time limit passes, an Uber driver can mark the rider as a no-show. In most cases, the driver gets a cancellation fee of around $5.
Uber Driver Percentile Pay by Location
The following data shows the percentile distributions of Uber driver earnings in several different locations. Note that median earnings appear in the 50% column.
|New York City||$30,183||$37,102||$44,702||$54,602||$63,615|
What are Some Common Expenses for Uber Drivers?
When you drive for your job, you drive more miles than you otherwise would. You’ll need to change the oil, other fluids, and tires more frequently.
If you don’t already own your car outright, you will need to continue making lease or car loan payments. According to Experian, the average monthly payment for a new car loan is $568. The average monthly payment for a used car loan is $397.
Uber drivers need to maintain comprehensive and collision coverage on their personal auto insurance. According to data from the National Association of Insurance Commissioners, collision coverage costs $363 per year on average, and comprehensive insurance costs $160 per year on average.
Uber has additional insurance coverage that protects your car should you get into an accident while on the clock. However, drivers must pay a $1,000 deductible before the coverage kicks in. Uber also has third-party liability insurance and uninsured/underinsured motorist bodily injury insurance for drivers. Learn more about Uber and insurance here.
Gas prices vary significantly, depending on where you live. Uber drivers must pay for the gas used to operate their Uber business. You can claim gas using the standard mileage deduction or by tracking actual gas expenses and deducting an exact figure for gas.
Some Uber drivers choose to offer riders in-car amenities like mints, phone chargers to use, water bottles, tissues, hand sanitizer, etc. Amenities aren’t required, but some drivers claim amenities help boost their ratings.
You can claim in-car amenities as a business expense outside of the standard mileage deduction.
Instant Pay Fee
Uber pays drivers weekly, but if you want your earnings faster than that, you will need to sign up for Uber Instant Pay. With Instant Pay, drivers can withdraw their earnings using a debit card for $0.50 per transaction. To avoid the fee, drivers can open an Uber debit account through GoBank.
Not every bank processes withdrawals immediately, so although it’s called Instant Pay, it could still take a day or two until the money appears in your account.
Currently, driving full-time for Uber doesn’t mean you get benefits like health insurance. Uber drivers need to secure their own health insurance if they don’t already have health insurance through a family member, partner, or employer.
This might change in the future. In the Spring of 2020, Uber announced plans to establish a health insurance policy for drivers. Uber would reportedly pay for health benefits on a sliding scale based on hours worked.
Uber doesn’t give drivers matching contributions to a retirement plan, life insurance, dental insurance, vision insurance, or other benefits. If you want these benefits, you will need to purchase them for yourself as an independent contractor.
Frequently Asked Questions
If you’re still wondering how to make $1,000 per week with Uber Eats or if this side hustle is right for you, I hope this list of commonly asked questions helps you make the right decision.
1. How Much Do You Make A Day With Uber Eats?
If we break down the hourly pay data we mentioned earlier, this answer is pretty simple. If you work eight hours a day, you can likely earn around $120 to $160 per day doing Uber Eats.
However, you want to skip the morning deliveries if possible and work the lunch rush, dinner rush, and late-night deliveries.
If you work Uber Eats from 9am to 5pm, I expect your hourly wage is going to be lower, meaning you earn less per day.
2. Can You Do Uber Eats Full Time?
This largely depends on your income goals and cost of living.
If you can earn $2,000 to $3,000 per month doing Uber Eats, this is a livable wage for many places on earth, especially if you live alone and don’t have dependents.
But, I think Uber Eats is a way for most people to create a new income source and earn more per month, not the only means of income.
Extra Reading – 20+ Jobs That Pay $3,000 A Month.
3. How Much Can You Make With Uber Eats In A Week
Uber Eats pays approximately $15 per hour on average according to multiple salary review sources and reports from other delivery drivers. If you work 40 hours a week, this means you make $600 with Uber Eats. However, by working longer hours and driving at peak times, you can make $1,000 a week or more with Uber Eats in very busy markets.
A Shortage of Uber Drivers
Recent increases in gas prices have led to a shortage of Uber drivers, which may bode well for those looking to pick up some rideshare gig work. Here, again, understanding the fine print and variables is important.
Fewer drivers result in increased costs for riders. As more people are looking to get back on the road as COVID-19 restrictions ease, they’re finding wait times and prices that reflect the shortage of drivers.
In April of 2021, Uber developed an incentive program number of $250 million to get drivers back on the app. It also started charging riders fuel surcharges to help drivers cope with the increasing gas prices of 2022. This, combined with increased fares due to scarcity, means drivers are seeing better financial opportunities than before. In large cities like New York, Philadelphia and Chicago, drivers are making over $30 per hour.
However, this temporary demand imbalance combined with Uber’s dynamic pricing structure suggests this pay increase is likely an unusual exception, not the rule. Those signing up as drivers now can make good money, but they should do so with an end date in mind.
Good To Know
The average car insurance will not cover a vehicle used for rideshare work. Uber provides insurance that covers drivers while they are waiting for a request, en route to pick-up or during a ride. To protect yourself when you use your vehicle for Uber, be sure to sign up for a rideshare auto insurance policy.
How Much Can You Actually Make on Uber?
You can make a median salary of $56,066 as a full-time driver for Uber in the United States, according to ZipRecruiter. Annual income could go as high as $130,000 or as low as $14,500, depending on several factors. Factors that affect median earnings include hourly wages, the type of Uber driving, and location. For example, Uber Eats drivers currently earn an average annual salary of about $40,176.
The top three highest paying cities for Uber rideshare drivers at the time of writing are San Mateo, CA, Berkeley, CA, and Daly City, CA. Full-time Uber driver earnings in these cities include an average of $69,121, $66,778, and $66,592 yearly respectively.
Take a look at the chart below that breaks down my $414.21 Uber paycheck for the week to understand how $115/hour came about. I only worked for two days out of the seven (Uber pays every Thursday like clockwork) for a total of $105.21. Meanwhile, I made $300 in “Other” and $9 in a toll, which is basically a reimbursement since I have to pay tolls up front.
So what is this mysterious “Other” you’re wondering? Well, after I gave my first 20 rides when I first started out, I earned a $300 bonus under the Other category. Every new driver earns a bonus after giving a certain number of rides. This $300 Other income on this latest income statement is my bonus income for referring a San Francisco driver who successfully completed his 20 rides!
The new driver apparently found me from one of my previous articles on Financial Samurai and decided to sign up and give Uber driving a whirl. Not only did I get the $300 referral income, so did he for a total payout of $600. The bonus amount depends on where you are located, but I think it is an absolute no-brainer to drive for Uber to collect the bonus payout (usually 10 – 50 rides). After that, quit and just pick up passengers along the way using their destination feature to make extra bucks. Why not?
Earn passive income
There’s nothing better than passive income to bump up your earnings to $1000 per week and more. There are a few ways to put in very little effort and come out with a nice stash of cash.
You’ve undoubtedly noticed offers from both Uber and Lyft to pay you for referring new drivers. Companies are frantically trying to recruit drivers, and those referral fees are going through the roof.
Drivers can get a referral link to send to friends and acquaintances who might want to take up the rideshare driving gig in a serious way. All you have to do is make sure you get your link in range of the right eyes. Here are some suggestions:
- Email or text your link with a “Hey, how are you doing?” message.
- Put your link on your website, even if it involves a totally different kind of business.
- Carry business cards with your link on them, and hand them out liberally.
- Post your link on your social media.
As with all sales pitches, make sure to tell people they can pass it on to a friend or family member who might be into it. It can’t hurt you, and every time a new driver signs up with your link and completes the required number of rides, your virtual cash register goes “ka-ching!”
Some companies make ads specifically for drivers to carry on and in their vehicles. On the outside, they’re in the form of car wraps and rooftop ads. Companies such as Wrapify pay car owners up to $450 a month (depending on wrap type and campaign structure) to display their ads on drivers’ cars.
On the inside of your car, you can get video games with ads, and news and information programming to keep your backseat travelers occupied. Improve your riders’ experience and sign up with Play Octopus to receive a free gaming tablet. You can receive cash rewards of up to $100 per month for driving activity and passenger game play!
You will need to check regulations, both with your local governing body and with Uber and Lyft. In most cases, though, these ads offer ways to bring in money with almost no effort on your part.
Money Lessons Learned
- People make more money out there than you know. Getting a 9-to-5 job is not the only way to make six figures a year. Plenty of independent contractors also make six figures because they’ve learned how to maximize their time and leverage existing assets (a car, a second car, relationships, etc.). Don’t look down on people who don’t have full-time jobs. Try to figure out their secrets instead.
- Market yourself by registering your domain name online. You must have an online presence if you want to be found. Don’t let Facebook, LinkedIn, or Twitter be the owner of your brand. Own your own brand! By creating a presence online, you can market yourself much more efficiently. You can leverage your platform to make referral income like I do with Uber. You can also use your platform to earn consulting gigs, sell products like my book, and earn advertising revenue. My online income is well north of $200,000 a year, allowing me to no longer have to work a day job. Sign up for Bluehost to register your domain and pay less than $4/month for hosting your website. It’s cheap and easy to get started. Here’s my step-by-step tutorial for how to start your own website.
- Develop your X Factor. Think about your X Factor as your happiness insurance policy. Your X Factor could be methodically developing a network of key individuals over the years who could hook you up with a new job when the time comes. My X Factor happens to be starting Financial Samurai in 2009 as a place to share my thoughts about the financial crisis. I never imagined the site would give me the confidence to engineer my layoff three years later, make more than my day job in banking five years later, or give me opportunities to consult for various fintech startups in Silicon Valley.
- Continuously experiment with new ways to make money. Test, test, test! This is the main lesson I learned while consulting at various marketing departments. Someone out there is doing it better than you. Figure out what they are doing and replicate in your own unique way. Don’t just settle for one source of income.
- Nothing beats hard work. The up to $1,000 sign-up bonus to drive is nice, and everybody should take advantage. But one of the main reasons why I decided to drive for Uber is because I wanted to prove to all the incredibly annoying people who complain they aren’t getting ahead and aren’t willing to work more than 40 hours a week, that making a healthy income is possible if you try harder! Yes, you need a car that’s less than 10 years old, and a smartphone, but come on. Some of the poorest people I know whom I play tennis with during the middle of the day have the latest iPhone, 60″ LED TV, and pimp daddy car. Thanks to the sharing economy, there are so many new ways to make money nowadays.
My goal is to consistently make over $100 / hour through Uber.. I’m a big proponent of working smarter, rather than harder. But in order to get smart, you’ve first got to put in your time!
The first step everybody needs to do is start their own platform online. Once you’ve got an online platform, your income upside is unlimited!
The pandemic has shown us that having an online business that cannot be shut down is a very valuable asset to have. Everything is moving online. Further, the value of cash flow has gone way up because interest rates have gone way down.
Making Money on Uber FAQCan you make good money with Uber?
Yes, you can earn good money with Uber. However, it is not a fixed income stream, so it varies based on your location, hours, trip lengths, and a host of other factors. For example, driving during busy times will earn you more money than slow periods. You must also consider the cost of doing business because all these factors will impact the total amount of money you earn per year. Insurance costs and income taxes will affect your net earnings.How much does Uber charge per mile in 2021?
Uber does not have a fixed rate per mile, so earnings estimates vary. The amount riders pay, and the amount a rideshare driver receives is affected by various factors. For example, during surge times, the price per mile skyrockets. The pickup location, drop-off location, time spent, and booking fee also influence the total charge per ride.Why are Uber prices so high in 2021?
Uber’s price increase in 2021 is primarily due to a driver shortage. Riders in certain parts of the United States have been complaining about the ever-increasing cost of Uber rides since the beginning of 2021. This is because when there are fewer drivers than customers, demand rises.
“Career Karma entered my life when I needed it most and quickly helped me match with a bootcamp. Two months after graduating, I found my dream job that aligned with my values and goals in life!” Venus, Software Engineer at Rockbot
Is Uber cheaper than a taxi? No, the base fare for most Uber rides is traditionally higher than the base fare for taxis. However, some frequent commuters have reported that Uber is cheaper for fast, smooth, and long rides with minimal congestion. Traditional taxis are less expensive for rides in congested areas with heavy traffic.
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