How much money do Uber drivers make? – Is it worth it?
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.
The Good
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.
The Bad
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!
5) Taxes
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.
Conclusion
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
This great business opportunity is called Affiliate Marketing. It may seem like a daunting word but it is a very easy concept. If you don’t know what it is, then I suggest that you read my article explaining affiliate marketing.
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.
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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!
Reyhana
I’ve often wondered how much an Uber driver really makes. After all, cabs are relatively expensive in comparison yet cab drivers don’t make all that much. I’ve hard Uber is cheaper but you also run the risk of having less experienced drivers driving you around. I guess Uber has addressed that concern though recently. I’m not sure if I could ever handle being an Uber. Currently with my car being a lease, definitely not. But if I owned my own vehicle I’m not sure I could handle this lifestyle. Thanks for sharing!
Hi Dev. Thanks for sharing your opinions and thoughts.
To be honest with you, I think the amount that a cab driver makes would depend on the number of hours they work and what time they work. It would also depend on the company they work for. I have known some cab drivers that make quite a bit of money and I have known others who make average income from it. I think there are quite a few factors that would determine your pay.
However, compare that income to Uber drivers, you are much better off being a cab driver. At least you are guaranteed to make full time income after expenses and tax.
I have a friend who drove for Uber for several months. He liked it a lot and recommended it as a way to make some good extra money.
After a few months though, he quit and went to work for a taxi company because the money was better,
I think that you really enjoy cruising around, meeting new people and you have a lot of spare time on your hands, being an Uber driver might be kind of fun.
Personally, I would rather find another way to make extra money.
That’s exactly what I think it is; a way to make some extra money for the short-term. It will not be a good idea for the long-term as the cons will eventually outweigh the pros.
Thanks for sharing your friend’s experience. I also personally think that I would not drive for Uber for extra money either. Although the freedom you get is really something to consider.
Hi there,
I must say uber is such a great help to me and my family since me and my wife always come home late they assist save a huge cost due to the low cost as a result of sharing an uber, the only problem is that they destroyed most of the market for taxi drivers forcing them to join uber regardless of the low payment.
Hey Dave. Uber is definitely a big help to those who need to get around but can’t afford a taxi. I agree, the market for taxi drivers has plummeted but in a way, it helps regulate the prices for the taxi companies, who keep increasing their rates. Where I am from, a 20 min ride in a taxi would be around $55. Whereas with an Uber, it would be $25. In my opinion, Taxi companies don’t have to go out of business, they only need to lower their fares a little to remain more competitive.
Terrific article! I had thought about being an Uber driver myself as an extra income but wondered about the costs. You explained them well and convinced me that driving as an Uber driver is not a good choice as a self-employment opportunity. Affiliate marketing definitely looks like a better alternative. How did you hear about Wealthy Affiliate? What made you decide to get your training with Wealthy Affiliate compared to other online courses?
Hello Paul. Thank you for dropping by and for leaving a comment. I am glad that my article was able to help you better understand what is involved when driving with Uber. I really appreciate the feedback. Affiliate marketing definitely is the best way to go, especially for beginners and if you are looking for long-term success.
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