How Much Money Do Uber Eats Drivers Make?

How Much Money Do Uber Eats Drivers Make?

How Uber Calculates Payments

You may be wondering “How much does Uber pay?”but in order to find the answer to that question, you need to know the way Uber calculates payments.

Depending on the service, payments are calculated a little differently. More specifically, the amount you will end up earning depends on where you drive, how often you do it, and when you drive.

For Rides

For a ride, Uber will calculate depending on the booking fee, aka the fee paid by the rider to cover regulatory, safety, and operational costs, and the service fee, which funds payment processing, app development, and customer support. But there are other things taken into consideration when calculating the payments for rides.

For example, the surge is also taken into account. Surge basically allows you to look on the heat map, which shows you, as a driver, where people have the highest demand for Uber. This allows you to earn more cash apart from your standard fare. And the standard trip fare is taken into consideration as well, which amounts to how far you drive, as well as the amount of time that you drive. Another thing added to the calculations is the earn on long-distance pickups, on minimums for short trips and while waiting for riders. Also, if a rider will cancel a request, there will be a cancellation fee that you are going to receive.  

For Delivery

When it comes to delivery, you would earn money depending on your pickup and dropoff. How far you travel will also be something that influences the amount of cash you are going to receive. In addition to that, if there are traffic and time delays, they are going to be factored into your fare.

If you happen to work in areas where people order food, and at busy times too, then you are going to earn way more cash. Also, besides getting the standard amount of cash for pickup and distance, you are also going to earn money for every dropoff.

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How Much Does Uber Take From Your Pay?

Drivers don’t get to keep all of the money a rider pays. Uber takes 100% of riders’ booking fees. Then, Uber takes a 25% cut from each fare. Drivers keep 100% of tips and bonuses. In the Uber driver app, you can exactly how much you’re earning vs. what Uber’s earning.

What Affects How Much You Can Earn by Driving for Uber?

Signing up for Uber doesn’t guarantee you the average 2020 wage of $17.21 to $19.89 per hour. How much you earn depends on the following:

How Far You Drive Per Ride

Part of your fare earnings is based on how many miles you’re driving and how long you’re driving. Longer trips bring in a bigger fare.

Where You’re Driving

Drivers earn different amounts based on where they’re driving. For example, if you drive in big cities or do airport runs, you can expect to make more than a driver working in a smaller suburb.

What Service Tier You Work In

Uber offers many service tiers. Not every tier is available in every location. Drivers with nicer cars that can hold more people enjoy higher rates than drivers who participate in UberX, which is the cheapest service tier for riders.

  • UberX: most affordable rates for 1 to 3 people
  • UberXL: affordable rides for groups up to 5
  • Uber Select: stylish rides for 1 to 4 people with highly-rated drivers
  • Uber Comfort: newer cars with more legroom
  • Uber Pool: shared rides, discounted rate per rider
  • Uber Black: premium rides in luxury cars
  • Uber Black SUV: premium rides for 6 in luxury cars
  • Uber LUX: top-rated drivers in luxury vehicles
  • Uber WAV: wheel-chair accessible vehicles
  • Uber Green: sustainable rides in electric vehicles
  • Uber Taxi: local taxi cabs

Surge Pricing

Uber uses an algorithm to detect rider demand and driver availability. When rider demand is high and driver availability is low, Surge Pricing goes into effect to incentivize drivers to give rides. Drivers earn the normal rate for rides multiplied by a surge price multiplier.

During times of Surge Pricing, drivers see what the multiplier is in the app. For example, when SURGE is at 2.5x, a ride that’s normally $10 would be $25.

Tips

As noted above, tips added an average of $1.31 per hour to a driver’s 2020 hourly wage. Being more personable and supplying extras like mints or tissues are ways Uber drivers can increase their chances of getting tips.

Get Started with Uber Eats Today

If you want to get started with Uber eats follow the following steps:

1. First off before signing up you will need to submit your Social Security number for a background check. You should also meet the minimum age requirement to be an uber eats deliverer where you live. If you plan to work using a car you will need to have a valid driver’s license, car insurance, and your car must have two or four doors.

2. Then you will need to sign up online by downloading and installing the Uber Eats Driver app on your iOS or Android mobile device. You will need to consent to a background check, upload a photo ID, add your bank account and other required documents.

3. Once Uber eats notifies that your driver account is active, you can begin receiving delivery requests.

4. After having your account activated open the Uber Eats Driver app menu and tap the ‘GO’ button you review potential deliveries and accept delivery orders.

5. You can use the Uber Eats suggested navigation information from the restaurants to your customers’ locations to help find locations and easy navigation. If you have trouble with the locations you can contact Uber Eats support on the Uber eats platform for additional support.

6. In terms of payment you get paid for every food order pickup and delivery that you complete and you can also get paid on a per-mile rate basis. You can set up a weekly automatic direct deposit to your bank account. You also have the option to cash out your uber eats earnings with Instant Pay up to five times each day.

Ufuoma Ogono

About the author: Ufuoma is a veteran freelance writer whose work has also appeared in Smartereum, Cyber Jam Limited, and Binance. Her goal as a content writer is to help readers chase their careers in technology and follow their dreams. Ufuoma attended of Delta State University, where she earned her BSc in Sociology and Psychology.

How Much Money Can You Make with Uber Eats?

Uber eats offers food delivery driver alternatives in hundreds of cities across the world giving people an opportunity to earn extra cash by offering food delivery services through a car, scooter, or bike. The average yearly earnings for Uber eats delivery drivers is around $ 43,778 in the United States.  Uber eats drivers make between $8 and $12 an hour factoring in expenses such as gas and car maintenance. There is no set figure on how much money do uber eats drivers make because one they are considered independent contractors and two payments are set based on trips calculated through a formula that takes into account factors including distances and the delivery fees that the customer pays.

In addition, you can stand to get additional earnings through tips from customers as well. Depending on your city, you can make Uber Eats deliveries with a car, scooter, or bike and start a side hustle to make money delivering food. Depending on your location uber eats pay can afford you a decent income in today’s gig economy. While you are at it look into other apps and find out how much money can you make with DoorDash?

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

About the Author

Emily Cahill is a writer with over three years of experience creating digital content. Previous to that, she worked as a freelancer in publishing while attending Trinity College for English/Rhetoric. She specializes in SEO-driven content that highlights the unique properties of a product or service while making them digitally “findable,” particularly for the finance, geek culture, and lifestyle niches.

How Much Are Uber Driver Expenses?

We all know that maintaining, insuring, and gassing up a car can be expensive. So, when you work for Uber, you may wonder how expenses like these are covered. To answer this question, they’re covered by you. Uber drivers are expected to cover their own car expenses fully. These expenses commonly include:

  • Car lease payments. You can lease a car from Uber but are responsible for the fees. You can also drive your own car and are responsible for any fees that come with that ownership.
  • Insurance. Age, location, vehicle type, coupled with a variety of other factors determine what you pay for insurance. Uber does offer drivers a commercial insurance policy. This policy is $1 million of coverage per incident.
  • Tolls, license, and permit fees. These are all paid by you. However, your passengers will find themselves paying a surcharge when you encounter tolls on the road.
  • Maintenance. All maintenance fees are your responsibility. The one exception is when a customer damages your car. Uber will reimburse you in this situation.
  • Gasoline. You will need to pay for your own gas as an Uber driver. Don’t expect to be reimbursed.

These expenses all vary depending on the age of your car, mileage, amount of driving, and destinations you travel to. Also keep in mind that as an Uber driver you can claim a deduction for your vehicle expenses. There are two ways to claim this deduction.

  • Standard mileage rate. The IRS issues a standard mileage rate each year. For 2018, it is 54.5 cents per mile. If you drove 1,000 miles driving for Uber, your deduction would be $545.
  • Actual expense method. With this method, you track the actual cost of gas, repairs, car insurance, registration, licenses, and depreciation or lease payments for the year, then multiply those expenses by the percentage of miles driven for business. For example, if your total automobile expenses were $5,000 in 2018 and you drove 10,000 miles for the year, 2,000 of which were for Uber, your deduction would be $1,000 (20% of $5,000).

You can also deduct business-related smartphone use, as well as water or snacks given to passengers. In addition, the cost of parking and tolls paid while driving for Uber can be deducted.

Recently, the Tax Cuts and Jobs Act created a special deduction for owners of pass-through businesses such as sole proprietorships, partnerships, LLCs and S corporations. If your Uber driving business qualifies, you may be able to deduct up to 20% of your business income from your taxes. There are several rules and thresholds to navigate, so talk to your tax advisor to determine how the pass-through deduction will apply to your situation.

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.

How Often Does Uber Pay You?

As an Uber driver, you may have irregular hours but don’t let that keep you from viewing the job as a stable income. Uber will provide you with a regular paycheck. As an Uber driver, you’re paid weekly on a regular schedule.

Fares are deposited directly into your bank account. Uber’s pay periods begin on Monday at 4 a.m. and end the following Monday at 3:59 a.m. Emails will be sent to you that link to your pay statement. Pay statements are also visible in your “partner dashboard,’” which you can google to find. Every Thursday, Uber will direct deposit your pay into your bank account. However, be sure to enter your bank information at vault.uber.com.

If this doesn’t sound fast enough to you, there’s another option. Uber offers instant pay to their drivers. This lets you transfer your pay whenever you need to. Instant pay can be used up to five times per day. However, you will need a debit card in order to access it. You can use your personal debit card for $.50 per cash out. Or you can also use an Uber debit card from GoBank for $0 per cash out. Each time you transfer money your weekly pay statement will say “instant payouts.”

However, when considering instant pay, you will need to look into your bank’s procedures. Certain banks will take a few business days to transfer your money. Some of these banks include:

  • H&R Block
  • First Citizens Bank
  • Amegy Bank of Texas
  • California Bank and Trust
  • First National Bank of Omaha
  • Webster Bank
  • Silicon Valley Bank
  • Northern Trust
  • Bank of New York Mellon

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 Becoming an Uber Driver Worth It?

Many individuals choose to become Uber drivers because they love the flexibility of setting their own schedule and being their own boss. Drivers also enjoy being able to meet new people, listen to music or podcasts on the job, and take off whenever they want. Seeing as the average Uber Driver can earn $1721 to $19.89 per hour before expenses, it can be a decent job, especially in areas where the minimum wage is still set to $7.25 per hour. Of course, whether it’s financially worth it or not depends a lot on where you live, how often you plan to drive, and your other expenses.

Before jumping in and becoming an Uber driver, do the following:

  • Research average Uber driver earnings in your area
  • Estimate your monthly expenses
  • Talk to a tax professional about how much of your pay you’d need to set aside for taxes
  • Research the cost of health insurance and other benefits
  • Run the numbers to see if it’s worth it for you

Unless otherwise noted, the earnings estimates come from the 2020 Ridester’s Independent Driver-Earnings Survey, which was based on 625 Uber driver respondents.

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