If you consider being an Uber driver and have questions like, how much will I earn from it? Or even Is it worth being an Uber driver or not? Don’t worry; we are here to help.
Although Uber drivers’ salary varies on factors like education, experience, etc., according to the salary, an average Uber driver makes around $38k. You can earn from a minimum of 30k to a maximum of $46K yearly while driving Uber. Yes, it’s worth it, especially if you are looking for a job and need more skills or higher education.
Keep reading to get all your questions answered related to an Uber driver. From how these Uber payments are calculated to the difference in earnings in different states. We have also shared some amazing tips to increase your earnings as an Uber driver at the end!
How Are Uber Payments Calculated?
Since you are here to find out how much Uber drivers make, you must know how these payments are calculated. These payment calculations may vary due to the time and place of the delivery.
Usually, you can do 2 things as a driver to make money on Uber. One is by taking rides with passengers to take them to their desired location, and the other is by delivering customers’ luggage. Both of these options have different payment calculation methods. Let’s see how each of them works.
Rides
Uber takes various factors into account while calculating the rides’ fees. These all are calculated according to the fee being paid by the customer. These fees cover all the service fees, expenditures for app development, safety measures, customer care, and operational costs. There are some other things, too, which are noticed while calculating the payments.
Other things considered include your distance from the rider and working in places with high Uber driver requirements. The time of your ride and the traffic on the route where you are traveling are also noticed. Another helpful thing for drivers is whenever someone cancels after booking a ride, you receive the extra fee, and the customer is charged that fee.
Delivery
The delivery fee is calculated based on pickup and drop-off location. Distance will be the most important factor in the amount of money you will receive. Higher traffic areas and time delays by the sender or receiver are also kept in mind while calculating your charges.
The number of pickups will also help you earn more, so you should take as many deliveries as possible to earn extra. Working in an area with many food restaurants and cafes will help you earn a lot more than usual.
How Much Are Uber Commissions & Fees For Drivers?
Uber commissions and fees rules are pretty simple. The passenger is the one who is supposed to pay the fee for booking, per minute or mile fee. At the end of the ride, the driver takes most of the money, but Uber takes their commission for using their platform to find the client. This fee is also called a Service fee. Let’s see how these extra fees and commissions work.
25% Commission
Uber takes 25% of the service fee. Although by the book it’s 25%, practically it goes even higher. It is due to the extra fees deducted by the Rideshare companies, which eventually cause in making this percentage higher.
Still, an average Uber driver in the US makes up to $13 to 22 per hour after deducting all these commissions. Uber app also lowered their prices earlier, which means you will have to drive longer than before to make the same amount of money.
Extra Fees
Uber also charges extra fees like booking and safe rides fees. These fees are directly charged to Uber accounts, and drivers cannot see them. These fees range from $1 to 3 and vary from place to place.
So this means long rides are more profitable for drivers than short rides since they would be charged extra every time for these fees. Eventually, after calculating all fees and commissions, it goes up to 42% rather than 25% for a ride.
So, How Much Do Uber Drivers Make In Every State?
Uber drivers need to be correctly estimated. It depends on various factors like your working hours, time, expenses, etc. Yet, according to an estimate, Uber drivers in different states earn 13 to 22$ per hour.
Below is a graph showing you the average estimated earnings as an Uber driver in different states of the USA. These can vary depending on your working time and many other things, but it’s an overall average.
| States | Uber Driver’s Average Yearly Income |
| Alabama | $35,402 |
| Alaska | $42,302 |
| Arizona | $37,724 |
| Arkansas | $42,849 |
| California | $41,651 |
| Colorado | $43,885 |
| Connecticut | $40,802 |
| Delaware | $39,602 |
| Florida | $30,041 |
| Georgia | $30,765 |
| Hawaii | $39,806 |
| Idaho | $34,302 |
| Illinois | $37,409 |
| Indiana | $36,902 |
| Iowa | $36,402 |
| Kansas | $35,802 |
| Kentucky | $57,000 |
| Louisiana | $32,154 |
| Maine | $36,402 |
| Maryland | $38,902 |
| Massachusetts | $31,472 |
| Michigan | $23,641 |
| Minnesota | $50,000 |
| Mississippi | $33,890 |
| Missouri | $36,002 |
| Montana | $34,202 |
| Nebraska | $35,402 |
| Nevada | $23,041 |
| New Hampshire | $38,302 |
| New Jersey | $33,056 |
| New Mexico | $32,102 |
| New York | $44,302 |
| North Carolina | $30,193 |
| North Dakota | $35,402 |
| Ohio | $41,278 |
| Oklahoma | $20,000 |
| Oregon | $37,038 |
| Pennsylvania | $35,894 |
| Rhode Island | $39,802 |
| South Carolina | $34,125 |
| South Dakota | $32,302 |
| Tennessee | $34,302 |
| Texas | $25,770 |
| Utah | $51,799 |
| Vermont | $36,302 |
| Virginia | $46,172 |
| Washington | $37,202 |
| West Virginia | $33,402 |
| Wisconsin | $34,728 |
| Wyoming | $33,602 |
Current Situation Of Uber Drivers In The USA
Situations for Uber or other rideshares have recently been very difficult. After the pandemic, the rideshare driver earnings have not recovered. There are many reasons, but fuel prices, inflation, and out-of-the-country tourism have been the key to this downfall.
Although the situation is improving daily, we will see 2023 as a much better year. But before that, let’s look at the reasons causing this current situation for Uber drivers in the USA.
Fuel Prices
Gasoline prices are one of the major reasons for this current situation. Due to high demand in the International market, gasoline prices were touching the sky in 2022. Uber prices went high, and after that, passengers tried to use as few rideshares as they could.
As the market is stabilizing, the prices have also gone low. It would help if you looked for ways to save gas while driving. It would increase the profit percentage of your rides.
Airports
Airports reopening has a very big role in increased rides and earning chances for drivers. People have started to travel after the opening of Airports, and tourism is returning to normal. It means more rides and, consequently, more earnings for you.
As a result of increased demand, you should go for Uber driving if you are still thinking of earning rides. More demand will help you unsettle quickly and earn many bonuses, especially targets for new drivers.
Pandemic Recovery
As more and more people have been vaccinated and the pandemic influences have reduced, everything is returning to normal. The universities and colleges are opening again. People are joining their physical jobs again.
This situation has increased many rides in the USA, so the situation is better than before, and if you are thinking of starting, it may be the perfect time to start for you.
Inflation
The inflation situation is also improving daily, so more people will use rideshares for small things. As of now, it’s 6.45%, and a few months back, it was touching 8%. The future predictions are also positive for the inflation situation in the USA, and it is expected to improve massively.
Ridesharing Trend
As everything is returning to normal, there has been a rise in the trend, creating more opportunities for the drivers and the people associated with it. The nightclubs and casinos have also reopened. As driving after all night partying or drinking is unsafe, people consider taking a ride rather than risking damage to their cars or lives by accident.
The situation has massively improved for rideshare drivers compared to the previous years. If you want to become one, you should go for it, as it is expected to get even better soon.
Check Out What I Earned Driving Uber Everyday For A Week:
Is It Worth Being An Uber Driver?
Yes, being an Uber driver is completely worth it, whether part-time or full-time. If you work smartly, you can earn a very good amount by being an Uber driver. It has no time limitations; you can decide whether you will work.
It also has drawbacks like busy weekends, use of personal vehicles, and maybe interacting with people in different states like drunk or angry, etc. High fuel costs are also a headache sometimes.
You can earn a handsome income using Uber’s smart features like Surge pricing, upper green, or delivery options. Its biggest advantage is it’s your work, and in case of any problem, you can turn off Uber anytime and address the issue first.
Entertainment
If you are a social person or an extrovert, it’s an amazing job. You get to meet many people and talk to them daily. You visit new places, which can be a great entertainment source and a good earning source. So if you are this person, you must go for this job. It’s going to be fun for you.
Tips To Increase Uber Driver Earnings
These tips will help boost your earnings as an Uber driver. Working in-demand places and on good routes will increase your earnings and keep your vehicle in good shape. Stay away from high-traffic areas to ensure you get out of traffic all day and miss important customers. Let’s see these tips in detail to know more.
Make A Strategy
A good Uber driver doesn’t just sit and wait for the ride to appear. It would be best if you made a strategy for more earnings and rides. Take notes of how people usually travel. If you go to any airport or park, you don’t need to rush back. You will easily get a ride from there.
Making a strategy will save a lot of fuel and, eventually, your money. If the passenger wants to go to a far-off location, then quickly return to any crowded location nearby to get your next ride. Making a plan will help a lot in earning more on Uber.
Take Notes Of Events
There are a lot of functions or events happening in every city daily. You should work smartly and be at the right place at the right time. Take notes of these events. These can be from sports events like Soccer or Basketball matches to music concerts.
There’s often a lot of need for Uber drivers in those areas, and you get paid more than in your usual areas. So always ensure you are aware of all such events. Eventbrite is an amazing application for finding events around you.
Keep Track Of Bonus Offers
Uber often provides incentives to drivers who complete their tasks. These are like completing a certain number of rides daily, weekly, or getting good ratings. They also offer special offers on different occasions, like new year’s or Christmas eve.
Uber gives special incentives for completing targets to its new drivers. Always read every mail and message from Uber to ensure you get all the offers and have a chance to earn more.
Work For More Companies
If you are an Uber driver and get fewer rides, you must sign up with more companies. So that you can always have passengers or delivery options during your working hours, it will also reduce your working time. You will be able to earn more in the same working hours. You could try working for companies like Lyft or Bolt alongside Uber.
Use Electric Cars
Using electric cars is the best thing you can do as an Uber driver. Firstly it saves you tons of fuel costs compared to gasoline vehicles, and secondly, it’s good for the environment too. Uber also offers special programs like Uber green and EV promotions which help you earn more incentives.
FAQs
Who Pays More, Uber or Lyft?
Lyft pays more, and they pay you around 18$ per hour, while on Uber, it may be low, around 15$ in some areas. Despite higher earnings per hour, if you are looking for the best choice as a driver, you should consider Uber since you can easily find rides on it compared to Lyft.
How Does Uber Pay Its Drivers?
You are paid immediately if the customer uses the cash payment method. Otherwise, Uber eats driver pay weekly to its drivers. Payments are directly wired to your bank account, and Uber also provides you with a statement showing the details of your earnings.
How Much Do Houston Uber Drivers Make?
An average Uber driver in Houston earns around $14.26 per hour and 11$ per ride. It’s a low income since you get paid around 21 Dollars in states like New York or Boston, but there are also states like Miami and Tampa, which offer even lower, around $12 per hour.
Final Thoughts
Uber drivers’ earnings need to be estimated properly. It depends upon several factors. Like there’s a huge difference in part-time and full-time earnings of an Uber driver. Many other key factors like your work location, strategy, and the vehicle you drive also play a major role in your earnings. But the average yearly income of an Uber driver in the US is $38k.
Being an Uber driver is worth it completely, especially when you know how to earn well and enjoy it. It’s high time if you are looking to become an Uber driver, as everything has almost fully returned to normal after the pandemic. So you are going to earn a handsome amount of money driving Uber!
