How Much Do Uber Drivers Make: Maybe you have heard from friends that driving for Uber can make you extra spending money, or maybe you are ready for a career change in your career and you think driving Uber can pay your bills around Orange County, this may interest you.
The first important thing to understand when trying to figure out how much uber drivers make is this: be conscious of the fact that there is a difference between how much revenue you bring in and how much you profit.
There are a number of 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 from ferrying people across town or home after a night out. Apart from that uber’s fees take a huge chunk out of driver’s revenue.
They are primarily male drivers enlisted under uber cab services, though less exclusively so than in the traditional taxi industry and the majority (7 out of 10) are working to support either a child or a parent living at home.
To know how much uber drivers make in Orange County, you have to know how Uber calculates a fare.
How Uber Calculates a Fare
To understand how much uber drivers make, it is important to know how much passengers are being charged for rides.
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.
Additionally, 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 actually takes home at the end of the night might be far less than what the passenger pays.
How much the uber drivers take home depends on how much the driver’s particular expenses are. While some are fixed like the amount that uber takes, and the cost of gas, others are variable.
There is also the impact of surge as well on the income of the uber driver.
The Impact of Surge on the Income of Uber 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 in order 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. Basically, a passenger pays multiple of the normal fare.
Uber also sometimes guarantees hour 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 how much uber drivers make around the world or how their income are been calculated.
How Much Uber Drivers Make
One of the benefits of driving for uber is driving as much or as little as you want. The more you drive, the more money you make. Of course, this is limited by the demand for rides in your city and the number of drivers that are on the uber network in your region.
Another way to measure an uber driver’s earnings is to look at how much they earn per hour. This is actually a hard thing to find since uber does not regularly release numbers, although uber does claim that some drivers earn an average of $19 per hour in its top 20 markets.
However, please note that such a number does not take into account expenses. So, to find out how much drivers really made and take home, you have to look at independent studies online that have surveyed drivers and other data to give us a better
There is a succinct difference however between uber drivers and other ordinary taxi drivers.
Difference between Uber Drivers and Other Taxi Drivers
Driving for uber is not the same as driving your regular taxi. This is because you are not technically working for uber, but you are an independent contractor who is running you own business.
What the above means is that, instead of receiving a W-2 form at the end of the year, you will get a 1099 form. For that reason, you will be able to deduct your miles and expenses on your taxes. You will also have to pay income tax and self-employment tax on your profit.
Like other self-employed people, you will have to file different forms on your taxes than you would if you were an employee.
While you will not have to file your personal and uber business returns separately if you have set up your uber business as a sole proprietorship, you will have to file an IRS Form 1040.
The Amount an Average Uber Driver can Make in Orange County
When you take into account the uber commission, the time driving to a passenger, and downtime, average pay can drop down to $22.68 per hour.
Though this may seem like a pretty good rate, note that gas usage was not in these calculations since everyone’s MPG is going to be different. Thus, we could estimate that they can get around 20 MPG on city streets so how do we figure out how many miles they drive.
To make reasonable money a day, therefore, is to start your trip odometer when you leave your house, though some uber drivers always forget to do this.
Be that as it may, if you forget to reset your trip odometer, a good way to estimate your total miles driven is to double your total miles (the number from uber and/or Lyft).
So let’s say you drove 114 miles and I get 20 Miles per Gallon. That means you used 5.7 gallons of gas which sounds about right for one night of driving.
Right now, you will be paying about $3.90 per gallon for mid-grade gas so that means I need to subtract $22.24 from my total fare of $124.76. So after accounting for gas, my hourly rate drops even further to $18.64/hour ($102.52/5.5 hours).
Is Uber Driving in Orange County worth it?
Since you work full time, you will not have to drive for Lyft and uber because you need the money. However, you can do it because it is fun, the hours are flexible and yea the extra money is nice.
Also, I think $18-$19/hr is about the minimum that you would be willing to drive. Though you can make more money per hour at a day job driving is a lot easier than someday jobs; so that is something that you should definitely consider.
Also, even though you ended up driving for five and a half hours, you will still be having a lot of fun. All of the passengers met may be cool and fun people.
Realistically, as 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.
A safe estimate for normal busy times in Orange County is a little less at $15-$25/hr after taking into account things like gas and downtime. Not bad for sitting in a cool air-conditioned car and driving people around.
Thus, you may wish to consider relocating to Orange County for your opportunity to make more money at your leisure.
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