How Much Do Uber Drivers Make? Full Pay Overview

How Much Do Uber Drivers Make? Full Pay Overview

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How do Uber drivers get paid?

Uber pays drivers on a weekly basis either on Wednesdays or Thursdays. The payment process starts on Monday, which is when the previous week’s earning cycle ends and the current week’s cycle begins.

You will receive a weekly pay statement for the previous week on Tuesday, but it may delay until Wednesday. The statement is automatically added to your Uber dashboard and may also be emailed. It won’t come at the same exact time each week, so don’t worry when it’s a few hours late.

On Wednesday, you’ll receive a direct deposit of your funds via ACH payment. While the deposit happens on Wednesday, the funds may not clear until Thursday. If you still don’t receive the payment by Thursday, then contact Uber directly and they’ll sort the problem.

In case you prefer to get your Uber payments more frequently, you can sign up for daily pay. This will allow you to withdraw funds up to five times per day. The only condition is that you must have at least $1 in your Uber account.

If that doesn’t work for you either, you can sign up for Uber Instant Pay. In which case, payments from customers will go directly to your debit account. You can then use a debit card to withdraw the cash. But keep in mind that some banks take up to two days to process these payments. Therefore, while Uber may deposit the money in your account instantly, you might still not be able to access it until the bank has cleared the transaction.

What does your Uber pay statement show?

The Uber pay statement essentially shows your amount receivable and completed orders for the previous week. These are rides that were requested and paid for by customers between 12 AM on Monday and 11:59 PM on Sunday of the previous week. There are three ways of accessing your Uber pay statement:

  • Via the Uber app: this statement contains your total pay for the week, with each payment itemized.
  • Via email: this is a more detailed statement which shows your pay on a day-to-day basis. It also contains the “Other” section. More on this shortly.
  • Via partners.uber.com: this is the most detailed statement. It shows you pay on a fare-by-fare basis and includes a more detailed section for other payments. These are bonuses and reimbursements that you earned over the week. You can access this statement by visiting partners.uber.com.

Contents of an Uber driver pay statement

It’s undoubtedly critical to figure out how much Uber drivers make in NYC before you venture into the business. Just as important, you also want to know where that money comes from and the amount that each item brings in. Here’s a closer look as itemized in a typical Uber driver’s pay stub:

  • Fare: the amount you received from passengers who hailed your Uber. It doesn’t deduct Rider Fee nor Uber’s cut.
  • Uber fee: the percentage that Uber retains from your earnings.
  • Rider fee: this is an additional service fee levied on the customer per ride. However, you are the one to collect it from your passengers then Uber collects it from you.
  • Surge: shows how much you earned from Surge rides. These are drives that you made to areas with higher-than-usual request volumes.
  • Wait time: the amount you earn for waiting for a customer for more than two minutes.
  • Long pickup fee: the money you earn when you drive 10 minutes or more to pick up a rider.
  • Tolls: reimbursements for tolls that you paid when driving for Uber. They are charged to riders and then Uber collects and reimburses you.
  • Cancellation fee: the amount paid to you when a rider cancels a ride request two minutes after making it. It’s usually a $5 payout per cancellation.
  • Other: this section covers miscellaneous reimbursements, cleaning fee and fare corrections.
  • Other payments: these are amounts that you earned from referral bonuses, promotions, guarantees and other incentives.
  • Total: the total amount you will receive on your next direct deposit from Uber.

Why cant I cash out Uber driver?

WHY CAN’T I CASH OUT MY ENTIRE BALANCE? High fares or fares under review may not be eligible for Instant cashouts. Otherwise, you can cash out all your weekly earnings, including referral rewards, Boost and Quest promotions, up to $2000 per week total.

Does Uber cover car accidents?

Uber is proud to offer partner support insurance, helping cover eligible partners who are in an accident while using the Uber app, with insurance from Chubb Insurance.

A Shortage of Uber Drivers

Recent talk of a shortage of Uber drivers may bode well for those looking to pick up some rideshare gig work. Here, again, understanding the fine print and variables is important.

At the end of 2019, there were 5 million Uber drivers. Today, that number has dropped to 3.5 million, a 40% decrease.

Fewer drivers result in increased costs for riders. As more people are looking to get back on the road post-COVID-19 restrictions, they’re finding wait times and prices that reflect the shortage of drivers.

In April of 2021, Uber developed an incentive program number of $250 million to get drivers back on the app. This, combined with increased fares due to scarcity, means drivers are seeing better financial opportunities than before. In large cities like New York, Philadelphia and Chicago, drivers are making over $30 per hour.

However, this temporary demand imbalance combined with Uber’s dynamic pricing structure suggests this pay increase is likely an unusual exception, not the rule. Those signing up as drivers now can make good money, but they should do so with an end date in mind.

Good To Know

The average car insurance will not cover a vehicle used for rideshare work. Uber provides insurance that covers drivers while they are waiting for a request, en route to pick-up or during a ride. To protect yourself when you use your vehicle for Uber, be sure to sign up for a rideshare auto insurance policy.

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Uber’s Pay Structure

Uber’s pay structure is dynamic and flexible. It is calculated according to location, time of day and frequency of work. Pay may vary on a day-to-day basis.

Uber provides “earnings estimates” instead of a set wage to help drivers identify their likely profits. These should be viewed strictly as projections. They are based on what other drivers working the same hours in the same location earned over the previous month.

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Qualifying Earnings

Uber drivers earn from a combination of factors including customer tips and trip fares. Occasionally things like Quest promotions may lead to additional earnings.

What Is a Base Fare?

The base fare is the flat rate that a pick-up pays. Time and distance increase the trip fare.

Does Surge Pricing Affect Drivers?

Uber uses surge pricing when demand is high, increasing the costs of rides. Uber drivers can use a local map to find surge prices and time their availability. This can increase earnings.

Make Your Money Work Better for You

Cancellation Fees

Drivers are protected if a ride is canceled while they are en route to pick-up. They will receive a cancellation fee.

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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

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.

Ways Uber Drivers Make Money

Now, let’s take a look at the different ways Uber drivers make money.

Fares

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.

Tips

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.

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.

Fees

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

How Much Can You Earn Driving for Uber? The Bottom Line

How much do Uber drivers make? Working as an Uber driver can provide a steady revenue stream.

There are quite a few factors that will influence your daily earnings, and some of them are outside of your control.

Working in an urban area is probably the best way to enhance your earnings as an Uber driver.

But, by targeting opportunities to increase your profits, like working during surge pricing and high-volume periods, you can tilt the playing field to your advantage and earn more money for your time behind the wheel.

And remember, all Uber drivers set their own schedules and priorities.

So, for someone who wants to avoid the demands of an office-based or nine-to-five type job, the flexibility of an Uber schedule can be especially appealing.

If you are thinking about driving for Uber, sign up today and see what you can earn.

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