How Much Does Uber Pay?

Posted by Frank Gogol

Nowadays, Uber is a very popular option for transportation when you need to go somewhere. The Uber app is very used on a daily basis, and only back in 2018, about 95 million people used the app every month. The company, which is based in San Francisco, has a net revenue of $11.3 billion. Since we know Uber makes a lot of money, it’s important to ask – how much is an Uber driver getting paid? If you don’t know yet, this article will tell you.

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.

How Uber Commission and Fees Work

It’s not that difficult to understand the way Uber fees and commissions work.

For instance, when it comes to fees, the passengers are the ones who have to pay a booking fee, as well as per minute and mile fee for their ride. After the ride, you as a driver would be paid the majority of the fare you made. And you only get “the majority” and not all of it because Uber is going to get their cut, respectively the “Service Fee”.

The amount that Uber says it charges their drivers is 25%, but it actually takes a little more than that from their earnings. This is all due to the fact that some additional fees are taken by rideshare companies, resulting in a higher percentage for the cut.

In the past, Uber drivers had to drive around 2.36 miles to make $10 before fees, but nowadays, the prices were lowered by Uber. As a result, a driver will have to drive 4.71 miles to make the same amount of cash.

Also, there is the booking fee and a safe rides fee for every Uber ride, which is between $1 and $3. These fees vary by city, but the driver cannot actually see these in their bank account, as this goes directly to Uber.

So, the commission taken by Uber is higher if the ride fare is lower, meaning the rideshare drivers would make less. So, in the end, even if Uber claims to take 25% from its drivers, it will actually take up to 42.75%. If you are doing short rides, then it won’t be too profitable for you.

So How Much Do Uber Drivers Actually Make?

Many Uber drivers are students who want to pay their way through college. How much Uber drivers earn varies from a driver to another, and it all depends on how much they drive, and many other aspects, such as car maintenance, gas expenses, tolls, insurance and so on. The time of the drive is also relevant to the amount a driver is going to earn at the end of a ride. It is hard to calculate an average number.

Overall, a driver is said to get an average weighted driver wage of $21.90 per hour. If a driver works 30 hours a week, the rough projected annual driver salary would be around $34.164.

However, it is important to consider that drivers do receive bonuses sometimes. It can be a little rare, but they still get some advantages. Some of the bonuses include sign-on bonuses and referral fees.

If you are still curious about numbers in different major cities across the United States, then check out this 2019 chart that says how much drivers made per hour before expenses and after TNC commission.

MarketEarnings Per Hour MedianEarnings Per Mile MedianEarnings Per Trip Median
Pittsburgh, PA$18.80$0.96$11.28
Los Angeles, CA$17.07$0.87$9.84
Dallas, TX$15.64$0.70$10.95
Phoenix, AZ$16.78$0.71$10.00
New York, NY$20.96$1.10$13.33
Washington, DC$17.44$0.94$10.23
Boston, MA$20.88$1.07$10.95
Chicago, IL$17.84$0.98$10.78
Baltimore, MD$15.90$0.81$9.90
Atlanta, GA$13.79$0.66$9.67
Miami, FL$12.69$0.69$8.67
Austin, TX$17.19$0.84$10.88
Detroit, MI$16.60$0.68$10.65
New Jersey$18.41$0.91$10.50
Houston, TX$14.26$0.63$10.85
Philadelphia, PA$17.22$0.99$9.71
Bay Area, CA$21.21$1.06$11.67
San Jose, CA$21.80$1.00$11.51
Seattle, WA$20.35$1.14$11.47
San Diego, CA$17.15$0.79$9.39
San Antonio, TX$12.44$0.64$9.29
Columbus, OH$14.46$0.76$10.05
Indianapolis, IN$14.69$0.66$9.29
Denver, CO$19.10$0.87$11.85
Jacksonville, FL$13.87$0.64$9.09
Charlotte, NC$13.57$0.62$9.31
Las Vegas, NV$15.37$0.89$8.61
Oklahoma City, OK$14.05$0.62$8.29
Nashville, TN$15.52$0.77$10.00
Kansas City, MO$16.85$0.69$11.23
New Orleans, LA$14.33$0.90$10.31
Tampa, FL$12.55$0.63$9.01
CTA

Conclusion

How much does Uber pay? Well, as you were able to see, it’s difficult to come down to a particular number since there are so many aspects that come into play, such as the fees taken by Uber. But on average, an annual Uber driver salary can go beyond $30,000 if the driver actually works 30 hours a week and not less.Since so many Uber drivers can be students or immigrants, it’s only normal that you want to know how much one would earn, especially if you are planning to become a driver yourself. Before you do, make sure you are considering the fact that Uber takes their cut from your earnings. After that, you can decide if it’s still worth it for you. If you want to know more, such as whether you can drive for Uber on H1B, on EAD or about loans and Social Security Numbers, check out Stilt and your questions will be answered.

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