Do Uber Drivers Make So Much Per Trip?

Being an Uber driver is a self-employed and lucrative business. What is your answer when asked how much Uber Drivers make? If you wish to join the company, you need this info for efficient management. To be well informed, find out the actual profit margin here.

How Much Do Uber Drivers Make

Finding out what Uber drivers make is a relative question especially when you don’t differentiate between their revenue and their profit.

There are several expenses when it comes to driving for Uber. The most significant is the cost of gas, insurance, and the wear and tear on your vehicle.

Apart from that uber’s fees take a huge chunk out of driver’s revenue. Considering all these, this is what they earn.

How Much Do Uber Drivers Make Everyday?

One of the benefits of driving for Uber is that you can drive as much or as little as you want. The more you drive, the more money you make.

You can only be limited by the demand for rides in your city and the number of Uber drivers within your location. However, you can make up to $2000 monthly.

Another way to measure an Uber driver’s earnings is to look at what they earn per hour.

While Uber does not regularly release numbers, it claims that some drivers earn an average of $16 to $23 per hour.

How Uber Calculates a Fare

With an estimate of an Uber driver’s salary, understanding what passengers are being charged for rides is important to calculate a fare price.

The actual amount of a fare is a calculation of time and distance. For each minute that they are in an Uber car, passengers are charged a specific amount.

Also, there is a rider fee that is charged by Uber which is meant to cover things like background checks for drivers, and other expenses related to onboarding drivers.

The amount that a passenger pays also depends on your city and the type of Uber they ask for.

Uber also takes a 20% cut of the final fare. When you add in expenses, the amount that an Uber driver takes home at the end of the day might be far less than what the passenger pays.

The Effect of Pricing on Uber Driver’s Income

Difference between Uber Drivers and Other Taxi Drivers

Surge pricing comes into effect when there is a high demand for rides. During that window, fares can increase.

This is one way that Uber controls demand for its services and also helps re-position drivers to better serve its customers.

Surge pricing could come into effect if there is a huge demand for rides across your city or if there is increased demand in a specific part of the city.

Therefore, a passenger may pay multiple of the normal fare.

Uber also sometimes guarantees hourly rates for drivers during periods of extreme demand to ensure that more drivers are willing to drive during that period.

Generally, it is important to know the amount Uber drivers make or how their income has been calculated.

Who are Uber Drivers?

They are primarily drivers enlisted under Uber cab services, which is quite different from the traditional taxi industry.

The majority of these drivers are doing this to earn a living and support either a child or a parent living at home.

Some people still don’t know the difference between Uber Drivers and other taxi drivers. Let’s highlight some of the differences here.

1. Driving for Uber means you’re an independent contractor, not an employee.

2. You’ll receive a 1099 form instead of a W-2, allowing you to deduct miles and expenses on taxes.

3. You’ll pay income and self-employment taxes on your profit and file IRS Form 1040.

4. Uber drivers also have the opportunity to choose their working hours and locations, unlike traditional taxi drivers who have set schedules and assigned areas.

5. Uber drivers use the Uber app to connect with passengers and navigate routes, while traditional taxi drivers rely on dispatchers and radio communication.

6. With Uber, you need to use your own vehicles, while traditional taxi drivers may either own or lease their vehicles from a taxi company.

Is the Job Worth the Pay?

Since you work full time, you will not have to drive for Lyft and Uber because you need the money.

You can do it because it is fun, the hours are flexible and the extra money is nice.

Also, $16-$23/hr is the minimum you get as an Uber driver.  Though you can make more money per hour.

An Uber/Lyft driver in a major city like Orange County should be able to make $20-$35/hr depending on the time you drive.

During absolute peak times, you can probably clear $30-$45/hr but that usually does not last longer than 1-2 hours.

Therefore, we can say it’s worth it since you earn what you work and won’t have excuses for not making so much or earning very little amount.

Being an Uber Driver allows you to earn every day which is a better option for a few people compared to salary earners who might lack money before the next payday.

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