How much do I make driving an Uber?
Uber Blog #3
typical Uber conversation
Passenger: What else do you do?
Me: I'm an artist, writer, and marketing content creator.
Passenger: Is Uber your full-time job?
Me: Yes and no. Maybe. I drive an Uber 30-40 hours a week. I consider it my main job and source of income. But I make more money producing content for clients. I use Uber to pay the day-to-day living bills: home, food, insurance, and car.
Passenger: Do you mind me asking how much you make?
Me: I don't mind. Thank you for asking.
Here's where the conversation gets interesting. I first say that I make about $1,000 a week, depending on how much I drive. From a dishwasher to a lawyer, every passenger is surprised. They probably assume an Uber driver is not making much.
It's a good living. $1,000 a week isn't amazing, but it pays the bills. I believe I can earn $75,000 a year if I need to. If I didn't have any marketing clients, I would drive 60+ hours a week. It would be hard on my back, but we all do what we have to do.
Income Calculation
33 hours online - First, I start with how many hours I drive with the app online. Online doesn't include stopping for breaks, gas, or getting the car serviced.
2.6 rides per hour: Then, I need to know how many rides I'll give in that hour.
$7.71 rides per ride: The baseline knows what you make per ride before promos or tips.
15.7% tip rate: I estimate my tip rate based on the paid base fare, not what the customer paid.
$138.00 in weekly promotions: Each week, Uber has promotions and quests to get drivers out on the streets.
Next, I have to calculate my variable expenses.
11.8 miles per ride: Miles is the most significant factor in expenses. The more miles I drive, the more I lose money.
55.4 miles per gallon: Gas is my number one expense per mile. Getting the most miles per gallon is the best way to keep my cash.
$3.29 per gallon.
$.03 per mile for maintenance: I estimate this on a $150 oil change and tire rotation every 5,000 miles.
10% tax rate: I save a little each week to pay my taxes. I don't know what my final tax rate will be, but it's wise to set aside money.
Knowing these variable costs, I can estimate how much I will make each week before my car payment, insurance, cell phone, and other expenses. I don't add my fixed costs because I'd have the car whether I Ubered or not.
However, let's use Uber to pay for all the costs, assuming I wouldn't have a car or cell phone.
$254.55 per week fixed costs: That's my car payment, insurance, cell phone, car washes, and $2,000 in annual repairs.
So, after expenses, including my car payment, I make about .50 cents on the dollar driving an Uber 33 hours a week.
You can try out this calculator to see how much you'd make per week driving an Uber.