If you’re’ looking for a side gig, you may consider ridesharing with Uber. It’s a great way to make money on your own time. You work when you want and don’t have anyone to answer to, except your rider who you want to make happy.
But how much do Uber drivers make? Is it worth your time?
What’s the Average Uber Hourly Rate?
While it’s hard to nail down a specific number since the amount you earn varies by where you live, and when you drive, the average driver makes anywhere from $9 per hour to $20 per hour. Some make less than that, and some make much more – again, it depends on where you drive and when. Peak hours, which Uber determines, pay you the highest rates (surge fare), which earns you the most money.
What Determines your Rate?
Every time you take a rider, you get paid a standard trip fare. This is the base rate plus extra money based on how long and how far you drive. The prices per mile and per minute vary by location, though.
You may also earn surge pricing, which occurs when there is a higher demand for drivers than there are drivers available. This happens for a variety of reasons, including:
- Rush hour during the week
- Major events in the area
- Bad weather
During this time, fares go up. Many riders pay the inflated fares, which means more money in your pocket. Some choose to wait to see if the rates fall, but there are usually enough riders who accept it, earning you higher rates.
You can tell how much extra a surge will pay you if you look in the app. It will say 1.5x or 2x, for example. This is 1.5 or 2 times the standard fare. You may also earn more money if you pick up extra riders (Uber Pool).
Sometimes Uber runs promotions for drivers. They differ by location and come and go, but a couple of examples include:
- A number of trips – Uber may run a promotion that pays you extra if you run ‘X’ number of trips in a specific period. If you meet the requirements, you earn the bonus.
- Driving during rush times – Uber also runs promos during busy times to get more drivers. They may offer a $5 – $10 bonus per drive that you do during the hours of 4PM – 6PM, for example.
Another way to increase your earnings through Uber is with tips. If you give your riders a great ride, meaning you show up on time, are pleasant, and have a clean car, they may tip you as much as 20 percent. Just like when you go out to eat, the tip varies based on how the customer is treated. If you go out of your way to provide a pleasant experience, you may increase your earnings.
Uber drivers do get to keep 100% of their tips, so it’s in your best interest to make sure the rider has a great experience. The better the ride, the more money you put in your pocket.
What Cut Does Uber Take?
Here’s the problem. Uber does take a percentage of the earnings, otherwise, how would they stay in business? Uber states that they take 25% of the fare for their cut of the ride, but they also charge other fees, including booking fees, safe ride fees, and other additional fees. It’s important to find out precisely what Uber takes from the driver’s income in your area before signing up.
Is Driving for Uber Worth It?
If you have free time, a nice car, and don’t mind driving, Uber is a good gig. You won’t pay the mortgage on your earnings, but you can make a decent side income. It can contribute to your diversified income. Did you know that millionaires have seven streams of income? If you’re looking for another stream to add to your portfolio, Uber makes a solid choice.
Before you decide to drive for Uber, make sure you know what it will cost you. Check your insurance to see if you need to change the type of coverage you have on your car to business insurance. Also, check the cost of the wear and tear on your vehicle. As an independent contractor, this is all your responsibility. Knowing the big picture can help you decide what’s right.