Here's How Much I Make (And Spend) As An Uber Driver
Despite driver-led protests, a federal ruling in May maintained that rideshare drivers are contractors, and not employees. So what exactly does that mean for the drivers on the ground?
For Uber driver and LinkedIn member Floyd Piper, the answer is... not much. “First and foremost Uber is a part-time job… and like any other hustle you have to be smart about what you're doing,” Piper told LinkedIn.
Piper, who works in Chicago, has no gripes about how drivers are designated, and says being “smart” about rideshare driving comes down to three factors:
- Understanding all the costs that come with driving, like cell phone bills, gas and oil changes.
- Learning about the city you drive around — “Who uses Uber the most where and when and what days" — including which types of services are used most (Uber pool vs. Uber X, for example) and which side streets and shortcuts work best.
- Obsessing over car maintenance.
“Look at your car. How well is it operating?" Piper asks rhetorically, before listing a number of details to keep in mind. "You get better gas mileage after an oil change than near the end of oil change life. Tire pressure needs to be checked weekly, as well as alignments.”
Piper also says predetermining which day of the week to fill up on gas, and where to do so, is important. He also mentioned a special Visa debit card offered by Uber, which offers cash back on services drivers typically use and helps track purchases that can be detailed for tax purposes.
"All of these things impact your cash spent," Piper says. "These areas you need to get under control in order to access your profitability as an Uber driver."
The contractor vs. employee debate
Without laws recognizing drivers as employees, rideshare companies are under no obligation to set minimum wages or offer benefits. But as Uber and Lyft made their respective debuts on the stock exchange during the spring, drivers across the country protested for those exact two things, aiming to capitalize on the heightened publicity surrounding the IPOs.
"We provide an essential service, but Uber and Lyft investors are only ones reaping the benefits. Our picket and rally will show that rideshare drivers will not be invisible—we demand justice," Karim Bayumi, a Los Angeles area-based driver, said in a statement released by Rideshare Drivers United.
Those protests have increased the amount of attention surrounding one question: Wait, how much do our drivers actually make?
In a statement, Lyft said that drivers on its platform make over $20 per hour. And other drivers have spoken to the media. "I’m not making a living. Almost all drivers are looking for work elsewhere," says Sonam Lama, who told CNBC he makes $800 per week from 40 hours of driving, but used to make over $2,000 per week (he said he drove more hours at the time as well).
For his part, Floyd Piper says he makes between $20 and $35 per hour and drivers 50 hours a week, which at the low-end would amount to a salary of about $50,000 per year.
The costs of driving for Uber
As an example of the costs that an Uber driver can occur, Piper broke down his expenses from his first number of months driving in 2016:
- He bought a 2001 Chevy Impala with 173,000 miles for $2,500
- He worked 10-hour shifts, Wednesday through Sunday, between 8 p.m. and 6 a.m.
- He made $3,200 in his first month driving and $5,100 in his second month
- His expenses (cell phone service, car insurance, gas, oil change, car wash, meals on the road) totaled about $1,000 per month.
Of his expenses, Piper labeled gas as by far the most costly, estimating between $500 and $600 spent at the pump each month. He also noted what he called "wear and tear" costs.
"Wear and tear expenses on this car cost me $5,000 over a six-month period," Piper said. "But I was setting $500 a month for just in case. I made more money as an Uber driver than I did as an Armed Guard working 50 plus hours a week."
And while the Chicago based driver is adamant that both he and his peers are contractors, he does admit that driving has different pros and cons from region to region. Each "market brings its own set of difficulties and challenges. So the thoughts that there is a universal answer to this question is absurd," Piper previously said.
The point he hammers home most however is that ridesharing is meant to be used as a convenient side hustle to those the job suits.
"Uber is offering an opportunity just like any other company," he says. "The job description and expectations are straightforward. If you are having so much trouble getting it together, then maybe Uber isn't for you."
Are you working for a ride-sharing company on the side? If so, how do you make a living? Share your story in the comments below.
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5 年The drivers are finding ways to fight back. They are organizing periods where they shut off the app to trigger surges just to get a marginal bump. In Boston, they have been organizing limits to people at Logan Airport due to higher fees, inconvenient rules, and horrid traffic. I've come to rely on Uber nationally, but the balance between the drivers making less, my fees going up, and periods of inconvenience would make consider other options quickly.? Could drivers organize and start a union? What would happen if they did, and got broader union support?
Private Aviation | Insurance - Sales, Account Management, Business Development
5 年As Rideshare drivers are independent contractors, it's not that independent if you have zero say in the most important aspect of Rideshare driving which is pay. Uber and Lyft have been steadily decreasing their pay for drivers and offering less bonuses and incentives. Are you really your own boss or are you just an employee with a little more flexibility??
Executive coach and strategic advisor to CEOs, C-suites, founders & VCs | Creator, Positive Instigation Executive Leadership Program | Brand & comms strategist | Fmr. C-suite exec | Fmr. NPR, U.S. News, Palantir
5 年I always ask Uber and Lyft drivers how they're doing and how much they make and how long they drive and it's tough to see that many drivers don't realize just how much they have to drive, the long grind for making little money relative to the effort and stress. But many are happy with the gig economy and being their own bosses and having control over their destinies. And many do believe they make a lot more money than the did as cab drivers. Many do it as a second job to supplement income. When you look at airport cab drivers, a dying breed, the story is even worse. I asked a Virginia cab driver late one night to walk me through the economics of his job with the advent of Uber and Lyft and realized he actually was losing money driving because of the long waits for customers. But he didn't recognize that because he had his head down working, supporting his family and he had no time or energy to do the math. Or maybe he didn't want to know what he would find because what would be his alternative? No matter which way you look, this is an industry in huge transition with direct and painful impact for all drivers.?