How Much Do Uber Drivers Make? All Income and Expenses

How Much Do Uber Drivers Make? All Income and Expenses

Job Description

The Uber Driver must be licensed to drive a taxi and have a “satisfactory” driving record. Provides car transport services to clients in/to varying destinations. Being an Uber Driver relies on instructions and pre-established guidelines to perform the functions of the job. (Copyright 2022

Employers: Job Description Management Tool


Uber Driver Partner (Delivery)

Fremont , California

… temporary, or any type of job opportunities. What you need to know: Earn Great Money: Make up to $26.20+/hour in fares. Flexible Schedule: Make your own schedule as a contractor any time day or night. …

Become an Uber Driver Partner – Instead of CDLDriver

Des Plaines , Illinois UBER

… temporary, or any type of job opportunities.What you need to know: Earn Great Money: Make up to $18.10+/hour in fares.Flexible Schedule: Make your own schedule as a contractor any time day or night.G …

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

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.

Location 10% 25% 50% 75% 90%
Connecticut $26,793 $32,802 $39,402 $48,102 $56,023
New York City $29,665 $36,702 $44,102 $53,902 $62,824
Kentucky $22,712 $27,902 $33,602 $40,902 $47,548
San Francisco $30,001 $38,102 $45,902 $56,002 $65,198
Wyoming $22,603 $27,702 $33,302 $40,602 $47,248

What About Uber Eats?

Uber rideshare drivers also have the option to deliver orders through Uber Eats. This entails opting in, accepting delivery orders and then transporting food and beverages to customers.

Choosing to deliver food can boost an Uber driver’s pay, especially on days when rides are slow. Uber encourages its drivers to diversify their payment options, depending on demand.

Uber Eats pays drivers a delivery fare based on pick-up, drop-off and distance. There is also a similar surge pricing for food delivery known as “Boost” that will increase pay at certain times of the day.

Frequently Asked Questions

Here are a few questions people ask about driving for Uber.

Is Uber meant to replace a full time job, or supplement income as a side hustle? It’s fair to say that, for most Uber drivers, a job with Uber has to be a supplement to a salary they earn elsewhere. There simply isn’t enough consistency for the typical Uber driver to make enough money to sustain themselves with Uber alone. So, many Uber drivers are only part-time drivers.

But, drivers who operate full-time in a dense urban area, and optimize their trips by supplementing their time behind the wheel by providing other Uber services can certainly earn a respectable income.

At that point, they are working a full-time job but don’t receive the benefits that other full-time workers enjoy.

For instance, you will not receive any paid time-off or sick leave working for Uber.

How much Uber drivers make by using the platform is up to them, but the ancillary benefits of full-time employment are not attainable as an Uber driver, as you are not an employee of Uber.

How long does it take to make 100 Uber trips? That depends on how buys your operating area is and how much you are working. If you are operating in a densely populated urban area, it’s quite possible you could complete 100 trips in a week to ten days, depending on the number of hours you work. But, if you are in a more rural setting, with longer rides for each trip, or you don’t work many hours consistently, it will take much longer to complete 100 trips.

Can you make $1,000 in a week with Uber? You can. But, you might be the exception to the rule. Most Uber drivers do not make that kind of money. But, by keeping in mind Uber’s payment structure, targeting times where your trips are eligible for surge pricing, and providing quality service that earns tips from your passengers, you can drive your earnings higher.

There are a great many factors that can make it easier (or harder) for full-time drivers to earn money with Uber.

It’s up to you to tailor your efforts to maximize your wages.

Is Working on Uber Worth It?

Working on Uber is worth it if you want a flexible job that allows you to be your own boss. Uber driving does not require as much capital as other businesses. To drive for Uber, you do not need a university degree. Even if you don’t own a car, you can hire one from Uber for as little as $250 per week. You can eventually buy a car if you have a steady source of income.

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.

Cancellation Fees

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.

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How to Become an Uber Driver

   Getting started as an Uber driver is easy. Down
Getting started as an Uber driver is easy. Download the app and sign up to get started.

Becoming an Uber driver isn’t as difficult as getting a job as an Uber employee . All you need to do is follow the steps listed below and meet the eligibility criteria. If you qualify, you can start using your car for rides in no time. Note that you need to meet the minimum age requirements in your city to apply.

1. Get a Vehicle

The first thing you need is regular access to a vehicle. Drivers who own cars make the most money. However, If you don’t have a car, you can lease one from people who specialize in hiring cars for Uber driving. It must be a four-door vehicle in good condition with no cosmetic flaws.

The vehicle cannot be older than 15 years old and must be covered by standard vehicle insurance. It also needs to meet the local car requirements in your state. If you cannot get a vehicle on your own, Uber can connect you to its vehicle partners for as low as $250 weekly . Drivers who work enough hours per week will make the payment.

2. Download the Uber Application

You will need the Uber application to complete your rides and track your earnings. This mobile application is available for iOS and Android devices and is completely free to use. After downloading the app, sign up as a driver and follow the subsequent prompts. You will find your earnings reports on the app when you start driving.

3. Get the Required Documents

You will need to submit important documents like your driver’s license, vehicle insurance card, utility bill as proof of residency, and a forward-facing profile photo of yourself. With these documents, you can complete the online screening and proceed to the in-person vehicle inspection.

4. Take the Vehicle for Inspection

Before your profile can be approved, you must take the vehicle to a nearby Uber workshop for inspection. It is important to note that you will be required to have the vehicle inspected every year or every 50,000 miles after the initial inspection. The goal of the inspection is to make sure that your car is safe for riders.

5. Start Driving and Earning

You can begin your first ride after your profile has been completed and your vehicle has been inspected. You might get a sign-up bonus if you’re lucky. Ensure the riders are comfortable throughout the ride and encourage them to give you a five-star rating after each ride. If you receive a lot of bad ratings, Uber may suspend your account.

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What are Some Common Expenses for Uber Drivers?

Vehicle Maintenance

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.

Car Payment

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.

Car Insurance

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.

In-Car Amenities

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.

Health Insurance

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.

Other Benefits

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.

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Income Differences of Driving Programs

A sure way to bring in a higher paycheck is to enlist in higher-paying driving programs.

If you own or lease a vehicle that qualifies for a more premium Uber option, then you should definitely take advantage of this.

UberX is the default option that all drivers will qualify to drive for, however, UberX is at the bottom of the totem pole when it comes to earnings.

UberX is the lowest paying service level.

After Uber takes their commission, drivers at this level only make $0.73 per mile driven.

Depending on what vehicle you own, you may qualify for more driving options that offer higher wages.

For instance, if you own a larger vehicle like a van or SUV, you can start driving for UberXL.

Drivers at this service level make almost double what UberX drivers do, bringing in $1.26 per mile driven.

Better yet, if your larger vehicle is new and has that luxurious feel, you could even qualify for UberSUV, which is a luxurious SUV option.

Drivers at this stage bring in a whopping $3.00 per hour.

That is over four times what an UberX driver makes when looking at per mile driven.

These high-end Uber options mean higher fares for passengers.

It also means that you’ll be dealing with a different type of customer.

Customers who are using the more premium options that Uber offers are paying more and will expect a higher level of service.

If you deliver a great experience, you can hopefully earn higher tips to match your service.

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