Although Uber has grown in popularity as a company that offers rides at lower prices and offers a way for the general public to make some extra income, negative feedback is starting to become more prominent. One of them, is the low pay. So if you’re thinking of starting to drive with Uber now, this would be a major concern. How much money do Uber drivers make, really? And would it be worth your time? Let’s find out in this article.
A little about Uber
Uber was an idea that started back in 2008, by Travis Kalanick and Garett Camp, when they had trouble hailing a cab during the winter, in Paris.
They designed the app in order to help those in need of a ride but little did they know how big this idea would become, worldwide.
Now, Uber is known all over the world, as being a company that offers fair prices, in comparison to taxi prices. There are various other services offered by Uber, from which you can make money but we will be sticking to Driving with Uber in this article, as in picking up and dropping off passengers.
I will dive right into the pros of working for Uber and will be giving you some details as to how this could be of benefit to you.
1) Work when you want
This is one you know very well already! Working for Uber, you have the ability to make your own schedule. You work when you want and take a break when you want. If you want to work for 8 hours straight or just take the day off, you are free to do so.
2) Meeting new people
If you are a people person, then driving with Uber will be very pleasant and enjoyable. You will get to meet a lot of new people and make new friends if you drive with Uber full-time for the long-term.
3) Listen to music or news while you work
If you have worked in a call-centre environment, or even a warehouse, then you know that the use of your personal devices are not allowed. You are usually not allowed to listen to music nor the news as you work. But with Uber, you have that freedom! You might even get to hear a new song or two from your passengers.
4) Surge pricing
Surge pricing is one that will result in the driver earning more money. It can be on a stat or another such important day observed by a big number of people.
5) Big earning potential
Admittedly, you can earn some good money driving with Uber, because you can put in any hours that you want. Peak hours would definitely account for more rides.
Here are the cons to consider if you are thinking of becoming an Uber driver.
1) Auto insurance
Because Uber has been illegalized in certain parts of the world, and also because it is simply an added risk, your insurance company may deny you if there are any claims that arise as a result of driving around passengers. Before you start driving passengers around, call your auto insurance company to inquire about whether you working for Uber is going to change anything within your coverage.
2) Down time
Being a driver does not mean that you will always be driving somebody around. It also means sitting in your car, sometimes upto 30 minutes, waiting for somebody to request a ride. The time that you waste waiting for a request will factor into your hourly earnings, reducing your own productivity and overall earnings.
3) Driver rating
The driver rating is very strict with Uber. After the ride is complete, the driver as a well as the passenger will be asked to rate each other. If a driver received a rating of 4 (over 5 stars) on a regular basis, this is considered poor performance by Uber and that driver will be banned from driving with Uber again.
4) Barf in your car
If you are looking to work during surge times or other times where there might not be a lot of competition around, you will likely be transporting a lot of drunk people. Prepare yourself for people barfing inside your car, over the headrest, the seats and the floor. Eww!
An Uber driver is not an employee, he is an independent contractor. This means that Uber will not be deducting federal and provincial taxes from your paycheque. You will be responsible for filing your own taxes come tax time. I know the money you get is needed urgently, but keeping aside 30% as you earn your paycheques will make things easier.
6) Wear and tear on your car
As you will be using your own car to transport passengers, you have to be mindful of the wear and tear that will result. The mileage will increase drastically, you might need to go for the maintenance of your car more often and you will need to replace parts of your car more often as well, such as tires and filters.
7) Income is not passive
Some people might consider this being a business but I say that this is self-employment. There is a difference. When you say you are self-employed, it means that you are working for yourself. Therefore, if you take a day off or go on vacation, you are not making any money.
However, a business is one where it does not matter what you are doing (sleeping, eating, vacationing or working), you will make money!
What existing drivers are saying
I have encountered a lot of people online that said they easily made around $22/hr but after you factor in gas and car maintenance, they are making below minimum wage. Not to mention that you have to take out the tax in addition to all of those expenses.
This would mean that you would be making an average of $5/hr after gas, maintenance and tax deductions. Many people are outraged at earning such a low income but as you are an independent contractor and not an employee, there is no obligation from Uber to pay you minimum wage.
On their website, Uber states that you could easily make $2200/month and I do not doubt that. Though this appears to be full-time income for a lot of us, they fail to disclose that this amount is BEFORE expenses on your car and taxes. This means that there are STRONG chances of you bringing home less than $1000/month.
After carefully looking at all the aspects of driving with Uber, my conclusion is that it will definitely be an experience for those who do decide to try it out, positive as well as negative.
Uber makes some good promises, which are certainly not lies, but there is a lot that is omitted. This gives the impression that the opportunity is way better than it actually is, causing so much frustration and anger among a lot of the existing drivers.
My suggestion would be to take this as a side gig and not as a full-time job, because you would have lost more in the long run working for Uber alone.
May I suggest an alternative?
This alternative will allow you to do the following:
1) work on your own terms
2) turn your passion into a thriving business
3) make passive income
4) low investment
5) low expenses
6) work from comfort of home or anywhere in the world
There is a learning curve but if you are given the right training and the right support, you will succeed! If I can do it, a college drop-out, you can too.
I received my affiliate marketing training from Wealthy Affiliate, the leading course on affiliate marketing online that you will ever come across. The most amazing fact is that you can start as a free member and remain a free member for as long as you like!
I have nothing to gain if you create a free account so you can be sure that I am not being paid to refer you there. I have personally used and still using this platform to generate a healthy and passive income online, from the comfort of my own home.
I hope that this article was helpful. I am looking forward to hear from you, if you have had some experience driving with Uber. What were some of the challenges that you faced? What did you like or dislike about it? What suggestions, tips, tricks would you give somebody considering driving for Uber?
Thank you for reading this article. Cheers to your success!