Uber Blog #4

Being a rideshare driver means you have control to earn as much as you want. Of course, the market limits what you'll make. New York City drivers will make more than rural Alabama drivers. And let's be honest, no one is making millions driving an Uber.

But there are a few things you can do to make more. For 2022 I'm averaging a $1.21 tip per ride which is 15.7% of my earnings. I expect to earn $5,000 in tips through the Uber app (not including cash tips). 

Here are my recommendations to make the most money possible as a rideshare driver.

Drive Safe

The first thing you can do to earn more money is not losing money. Reckless driving will cost you time. You'll get pulled over for speeding, you'll hit potholes, and you most likely will end up wrecking. You know how it is, how frustrating it is when everyone else is driving slow. 

Relax. Driving an Uber or Lyft means you'll go hundreds of extra miles a week and spend hours in your car. The odds something terrible will happen increase when you drive foolishly. Tickets and repairs cost money. Worse, if your car is in the shop, you can't drive.

Tips

Tips are the best way to get as much as you can out of each ride. Nothing feels better than getting a large tip you can put into your pocket that minute.

• Be kind. Help. Listen and conversate if the passenger wants to talk. I get most of my tips from loading and unloading bags, opening doors, and being a nice guy.

• Keep your car clean. I live in a snowy climate, so I get my car washed inside and outside every day. It's not hard to wipe your seat down every few hours and keep the odors out.

• Drive smooth. Think of yourself as a limo driver. Your passengers don't want to be jostled around as you race from stoplight to stoplight. Accelerate and come to a stop smoothly, and don't weave around traffic. Your only job is to get the passenger safely to their destination. Saving a minute or two racing will only lead your car out of commission and fewer tips.

• Ask for a review. As the ride is coming to an end, ask your passenger for an "honest review." It's a great way to get them to go back into the app. The tips buttons usually are right next to the review screen.

• Consider the extra things. I keep my music to elevator jazz, SiriusXM channel 66. No one has ever complained. I like to have packaged mints and small bottles of water. I even have a few charging wires. None of these items are expensive, but they are appreciated and earn more in tips.

Save Money

You can't control what rides you'll get. But you can control what you spend. Remember, it's not how much money you make but how much money you keep.

• Save on gas. Each trip is between 5 to 20 miles long, depending on your market. And you'll most likely have 2 or 3 rides per hour. This means you'll be driving 150 miles per 5-hour shift. If gas is $3.50 a gallon, you'll be spending a lot on the gas a day:

  • $22.83 a day on gas - My first Uber was a Toyota Avalon that got 23 mpg. ((150 miles / 23) * 3.50)

  • $8.75 a day on gas - Now I'm driving a Prius Plug-In Prime that averages 60 mpg $21 gas. ((150 miles / 60) * 3.50)

  • I'm saving at least $4,000 a year on gas now.

• Drive a used car. Used cars with at least 30,000 miles are a great way to save money on depreciation. For most cars, you can get 150,000 miles before serious repairs start to happen. Some will even go well into the 300,000-mile range.

• Bring your own food and drinks. Buying food on the road is expensive. Pack a sandwich and have a bottle of water.

Drive When It's Busy

Early morning commutes, major sporting events, and late nights when the bars are closing are when everyone wants a Lyft or Uber. This means there will be surges in prices. I've made $30 on many 3-minute rides when it's busy. And yes, the early morning commute is great because someone has to get to work. Driving when it’s peak hours will ensure you get the most per ride and hour.

Be Online

Be online as often as possible. Yes, it's true, you can make a little more on the margins driving rideshare, but the best way to make the most is to be online more hours. The more you drive, the less your fixed costs like car payments and insurance cost per hour.

In the end, driving an Uber or Lyft is a job where the more you work, the more you get paid. You'll have more opportunities to earn, and you'll be able to hit all your quests. 

In the News

DoorDash Unfazed by Economic Reopening: Revenue Surges Higher (The Motley Fool 22 February 2022)

Uber Technologies Inc. stock falls Friday, underperforms market (Market Watch 18 February 2022)

John & Shari: Seattle Uber riders rated second-worst among US cities (My Northwest 21 February 2022)