Thinking about driving for Uber? Then you need to know how much do Uber drivers actually make? Uber is one of the largest rideshare and food delivery services in the world, providing you with a flexible side hustle option.
While driver pay is fairly similar compared to alternatives, like DoorDash, we’re covering exactly what you need to know about how much Uber drivers make, including how you’re paid, Uber’s pay formula, and driver expenses.
Remember, Uber isn’t the only flexible side hustle, learn more about if you’re interested in an alternative.
How Much Do Uber Drivers Make in 2023?
First, About Uber
Launched in 2009 as a rideshare company, Uber has since grown into a global leader in the rideshare industry. They launched Uber Eats in 2014 to offer food delivery services, and Uber went public in 2019.
For side hustlers, Uber offers flexible options for making money, whether that’s getting paid to drive people around or deliver food. Uber and Uber Eats drivers are independent contractors who can work for any number of rideshare or food delivery companies while driving for Uber.
So, How Much Do Uber Drivers Make?
Here’s the big question: How much do you make driving for Uber? The average driver makes $10 to $25 an hour driving for Uber or Uber Eats.
It’s important to know that Uber doesn’t pay drivers a flat hourly rate. You’re paid for every order you deliver or person you drive, and pay varies across the board based on a variety of factors. You could talk to 10 Uber drivers and they would all make different amounts over the course of the day, but drivers can average pay over the course of the week.
For example, here’s look at how you could calculate average Uber driver pay over the course of a week:
- Monday: Deliver for 4 hours and make $73
- Tuesday: Deliver for 5 hours and make $80
- Thursday: Deliver for 2 hours and make $35
- Saturday: Deliver for 6 hours and make $104
Over the course of the week, this driver drove for 17 hours and made $292. You can divide $292 by 17 hours = $17/hour on average.
Drivers can earn more when they drive during busy hours when the demand is high, and they keep 100% of their tips.
How Uber Calculates Payments
We mentioned that Uber driver pay varies based on a number of factors, and let’s explore what those factors are.
There are three key factors that impact Uber pay:
- Fares: This is the amount you earn for completing a ride, delivery, or shopping order. This amount depends on the region or city you’re driving in, and your earnings are determined per-minute and per-mile. In some cities, you can see how much you’ll make before you drive, which is called Upfront Fares, and it’s calculated based on driving conditions, like destination and demand.
- Promotions: Uber drivers can earn more with three different promotional earnings: Boost+, Quest, and Surge. While they’re all different, Uber promotions incentive drivers to drive more, typically when demand is high or if they’re a new driver.
- Tips: Drivers keep 100% of their tips. No matter what the tip is, you keep all of it.
More Things to Know About Uber Driver Pay
Here are a few more things to understand about how pay works:
- You can make more money when people book rides or orders in advance.
- For Uber rideshare drivers, when a fare is canceled after you start driving toward them, the customer is charged a cancellation fee and you’re refunded for your time.
- If you’re charged a toll while driving for Uber, the toll amount is charged to the rider and refunded to you.
How Do Uber Drivers Get Paid?
Uber and Uber Eats drivers are paid weekly for any orders or fares they complete the previous week. When you sign-up for Uber, the onboarding process involves connecting your bank account so Uber can automatically transfer money into your account.
Drivers can also cash out instantly with Instant Pay. There’s a $0.50 charge per transaction, and money is automatically transferred into your bank account. If you sign up for Uber’s free prepaid debit card, you can cash out instantly for free.
How Much Do Uber Eats Drivers Make?
Uber Eats drivers deliver food, beverages, and even convenience store goods for Uber Eats customers. The way it works is that customers place orders in the app and delivery drivers then accept the orders — it’s very similar to rideshare driving, but you’re delivering food, not people.
Uber Eats drivers average the same hourly pay as Uber drivers, and the factors that account for rideshare pay is the same for food delivery pay: fares, promotions, and tips.
For Uber drivers who want to increase their pay, you can also deliver for Uber Eats or any other food delivery service, like DoorDash, which is currently looking for new drivers.
Uber Driver Pay vs. Take-Home Pay
Like all rideshare or food delivery drivers, Uber drivers are independent contractors. This means that you are responsible for any expenses related to driving, and these driver expenses cut into your take-home pay. This is what’s known as the difference in your gross and net income. Gross income is the total amount you earn before expenses, and your net income is what you earn after expenses.
Here are the expenses that may affect your Uber driver pay:
- Cell phone bill
- Any apps you use to deliver
- Wear and tear on your vehicle
You can write off those expenses when you file your taxes, but make sure you keep track of all of them. Some drivers like to use an app like Everlance to track their expenses, but you can keep track of them the old-fashioned way with pen and paper.
Learn more at How to Handle Taxes for Your Side Hustle.
Final Word on How Much Uber Drivers Make
While Uber driver pay varies based on when and where you drive, Uber drivers get paid $10 to $25/hour on average. You’re paid for each delivery, not a flat hourly rate. Drivers also keep 100% of their tips, and you can write off any expenses on your taxes.
Remember, Uber isn’t the only flexible side hustle, learn more about how to become a DoorDash driver if you’re interested in an alternative.