How Much Money Can You Make as an Uber Driver?

How Much Does Uber Pay Per Hour In Canada?

While many factors determine how much an Uber driver can make, the Canadian average is $15.31 per hour, after expenses. That translates into $31,844 a year. This will vary by quite a large margin depending on the province you are in.

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Frequently Asked Questions

Here are a few questions people ask about driving for Uber.

Is Uber meant to replace a full time job, or supplement income as a side hustle? It’s fair to say that, for most Uber drivers, a job with Uber has to be a supplement to a salary they earn elsewhere. There simply isn’t enough consistency for the typical Uber driver to make enough money to sustain themselves with Uber alone. So, many Uber drivers are only part-time drivers.

But, drivers who operate full-time in a dense urban area, and optimize their trips by supplementing their time behind the wheel by providing other Uber services can certainly earn a respectable income.

At that point, they are working a full-time job but don’t receive the benefits that other full-time workers enjoy.

For instance, you will not receive any paid time-off or sick leave working for Uber.

How much Uber drivers make by using the platform is up to them, but the ancillary benefits of full-time employment are not attainable as an Uber driver, as you are not an employee of Uber.

How long does it take to make 100 Uber trips? That depends on how buys your operating area is and how much you are working. If you are operating in a densely populated urban area, it’s quite possible you could complete 100 trips in a week to ten days, depending on the number of hours you work. But, if you are in a more rural setting, with longer rides for each trip, or you don’t work many hours consistently, it will take much longer to complete 100 trips.

Can you make $1,000 in a week with Uber? You can. But, you might be the exception to the rule. Most Uber drivers do not make that kind of money. But, by keeping in mind Uber’s payment structure, targeting times where your trips are eligible for surge pricing, and providing quality service that earns tips from your passengers, you can drive your earnings higher.

There are a great many factors that can make it easier (or harder) for full-time drivers to earn money with Uber.

It’s up to you to tailor your efforts to maximize your wages.

What About Uber Eats?

Uber rideshare drivers also have the option to deliver orders through Uber Eats. This entails opting in, accepting delivery orders and then transporting food and beverages to customers.

Choosing to deliver food can boost an Uber driver’s pay, especially on days when rides are slow. Uber encourages its drivers to diversify their payment options, depending on demand.

Uber Eats pays drivers a delivery fare based on pick-up, drop-off and distance. There is also a similar surge pricing for food delivery known as “Boost” that will increase pay at certain times of the day.

How to Make More Money on Uber

Now that you know how to start working on the Uber platform, you can make additional income and increase your median income by having a good driving strategy. Here are some tips on making more money on Uber.

Take Advantage of Every Surge Period 

When there is an increase in demand for drivers, the fare price and booking fee rise significantly above standard trip fees. The Uber app notifies you when there is surge pricing in specific areas, which you can use to boost your total earnings. While surge prices or amounts can be unpredictable, you can predict busy times to some extent and plan your schedule around these surge periods.

Save on Personal Expenses with Uber Partners 

Uber has several partnership programs that help drivers save money on driver expenses. One of such programs is Uber Pro. Uber Pro is a loyalty reward program that helps you earn more money by saving up to 25 percent on vehicle maintenance.

Some drivers in this program may also enjoy 100 percent tuition payment at Arizona State University ASU online. If you qualify but do not want to attend school, a family member may use the benefit. To enjoy Uber Pro benefits, you must drive frequently and provide excellent services to your riders in order to accumulate points over time.

» MORE:   How to Make Money on Upwork: How Much Can You Really Earn?

Earn Tips from Happy Customers

If you are an Uber Eats driver, you can make extra income from tipping. Uber doesn’t deduct any service fee from your tips. It is important to note that these tips are not mandatory, so you should not pressure your clients to tip you. All delivery drivers need to do is provide exceptional service. When the client is asked to leave a review, they will have the option to tip the driver.

Stay in the City Center 

Driving without passengers will only cost you money in the long run. The same can be said about working in the suburbs. Even if you live in the suburbs, you should go to the city center in the morning and work there until you are ready to return home. You will find the most riders in city centers. 

Download the Passenger App 

To optimize the experience and earn more money, you should download the Uber passenger app. The app has features that aren’t available on the driver app. One powerful feature is the location of drivers. Passengers can see the locations with the highest number of drivers. You can use this and other trip details to your advantage.  

How Does Uber Calculate Your Pay?

According to Uber, they calculate your pay on a weekly basis by summing up your trip fares, cancellation fees, tips, promotions, referral awards and tolls. They then take away any Uber fees, vehicle fees and device subscriptions where applicable. The total pay is then deposited in your bank account and in most cases deposits are daily!

What are Some Common Expenses for Uber Drivers?

Vehicle Maintenance

When you drive for your job, you drive more miles than you otherwise would. You’ll need to change the oil, other fluids, and tires more frequently.

Car Payment

If you don’t already own your car outright, you will need to continue making lease or car loan payments. According to Experian, the average monthly payment for a new car loan is $568. The average monthly payment for a used car loan is $397.

Car Insurance

Uber drivers need to maintain comprehensive and collision coverage on their personal auto insurance. According to data from the National Association of Insurance Commissioners, collision coverage costs $363 per year on average, and comprehensive insurance costs $160 per year on average.

Uber has additional insurance coverage that protects your car should you get into an accident while on the clock. However, drivers must pay a $1,000 deductible before the coverage kicks in. Uber also has third-party liability insurance and uninsured/underinsured motorist bodily injury insurance for drivers. Learn more about Uber and insurance here.

Gas

Gas prices vary significantly, depending on where you live. Uber drivers must pay for the gas used to operate their Uber business. You can claim gas using the standard mileage deduction or by tracking actual gas expenses and deducting an exact figure for gas.

In-Car Amenities

Some Uber drivers choose to offer riders in-car amenities like mints, phone chargers to use, water bottles, tissues, hand sanitizer, etc. Amenities aren’t required, but some drivers claim amenities help boost their ratings.

You can claim in-car amenities as a business expense outside of the standard mileage deduction.

Instant Pay Fee

Uber pays drivers weekly, but if you want your earnings faster than that, you will need to sign up for Uber Instant Pay. With Instant Pay, drivers can withdraw their earnings using a debit card for $0.50 per transaction. To avoid the fee, drivers can open an Uber debit account through GoBank.

Not every bank processes withdrawals immediately, so although it’s called Instant Pay, it could still take a day or two until the money appears in your account.

Health Insurance

Currently, driving full-time for Uber doesn’t mean you get benefits like health insurance. Uber drivers need to secure their own health insurance if they don’t already have health insurance through a family member, partner, or employer.

This might change in the future. In the Spring of 2020, Uber announced plans to establish a health insurance policy for drivers. Uber would reportedly pay for health benefits on a sliding scale based on hours worked.

Other Benefits

Uber doesn’t give drivers matching contributions to a retirement plan, life insurance, dental insurance, vision insurance, or other benefits. If you want these benefits, you will need to purchase them for yourself as an independent contractor.

How Often Does Uber Pay You?

As an Uber driver, you may have irregular hours but don’t let that keep you from viewing the job as a stable income. Uber will provide you with a regular paycheck. As an Uber driver, you’re paid weekly on a regular schedule.

Fares are deposited directly into your bank account. Uber’s pay periods begin on Monday at 4 a.m. and end the following Monday at 3:59 a.m. Emails will be sent to you that link to your pay statement. Pay statements are also visible in your “partner dashboard,’” which you can google to find. Every Thursday, Uber will direct deposit your pay into your bank account. However, be sure to enter your bank information at vault.uber.com.

If this doesn’t sound fast enough to you, there’s another option. Uber offers instant pay to their drivers. This lets you transfer your pay whenever you need to. Instant pay can be used up to five times per day. However, you will need a debit card in order to access it. You can use your personal debit card for $.50 per cash out. Or you can also use an Uber debit card from GoBank for $0 per cash out. Each time you transfer money your weekly pay statement will say “instant payouts.”

However, when considering instant pay, you will need to look into your bank’s procedures. Certain banks will take a few business days to transfer your money. Some of these banks include:

  • H&R Block
  • First Citizens Bank
  • Amegy Bank of Texas
  • California Bank and Trust
  • First National Bank of Omaha
  • Webster Bank
  • Silicon Valley Bank
  • Northern Trust
  • Bank of New York Mellon

How Much Are Uber Driver Expenses?

We all know that maintaining, insuring and gassing up a car can be expensive. So, when you work for Uber, you may wonder how expenses like these are covered. To answer this question, they’re covered by you. Uber drivers are expected to cover their own car expenses fully. These expenses commonly include:

  • Car lease payments. You can lease a car from Uber but are responsible for the fees. You can also drive your own car and are responsible for any fees that come with that ownership.
  • Insurance. Age, location, vehicle type, coupled with a variety of other factors determine what you pay for insurance. Uber does offer drivers a commercial insurance policy. This policy is $1 million of coverage per incident.
  • Tolls, license and permit fees. These are all paid by you. However, your passengers will find themselves paying a surcharge when you encounter tolls on the road.
  • Maintenance. All maintenance fees are your responsibility. The one exception is when a customer damages your car. Uber will reimburse you in this situation.
  • Gasoline. You will need to pay for your own gas as an Uber driver. Don’t expect to be reimbursed.

These expenses all vary depending on the age of your car, mileage, amount of driving, and destinations you travel to. Also keep in mind that as an Uber driver you can claim a deduction for your vehicle expenses. There are two ways to claim this deduction.

  • Standard mileage rate. The IRS issues a standard mileage rate each year. For 2018, it is 54.5 cents per mile. If you drove 1,000 miles driving for Uber, your deduction would be $545.
  • Actual expense method. With this method, you track the actual cost of gas, repairs, car insurance, registration, licenses and depreciation or lease payments for the year, then multiply those expenses by the percentage of miles driven for business. For example, if your total automobile expenses were $5,000 in 2018 and you drove 10,000 miles for the year, 2,000 of which were for Uber, your deduction would be $1,000 (20% of $5,000).

You can also deduct business-related smartphone use, as well as water or snacks given to passengers. In addition, the cost of parking and tolls paid while driving for Uber can be deducted.

Recently, the Tax Cuts and Jobs Act created a special deduction for owners of pass-through businesses such as sole proprietorships, partnerships, LLCs and S corporations. If your Uber driving business qualifies, you may be able to deduct up to 20% of your business income from your taxes. There are several rules and thresholds to navigate, so talk to your tax advisor to determine how the pass-through deduction will apply to your situation.

How Much Can You Actually Make on Uber?

You can make a median salary of $56,066 as a full-time driver for Uber in the United States, according to ZipRecruiter. Annual income could go as high as $130,000 or as low as $14,500, depending on several factors. Factors that affect median earnings include hourly wages, the type of Uber driving, and location. For example, Uber Eats drivers currently earn an average annual salary of about $40,176

The top three highest paying cities for Uber rideshare drivers at the time of writing are San Mateo, CA, Berkeley, CA, and Daly City, CA. Full-time Uber driver earnings in these cities include an average of $69,121, $66,778, and $66,592 yearly respectively. 

Start Earning With Uber

Earning enough to make ends meet is easy with Uber, but with our tips, you can strategize your way toward some quick cash in no time.

Inspired to take on a new gig?

Opportunities to Earn More

Just because the average hourly income of Uber drivers is fairly low doesn’t mean you can’t make significantly more.

If you’re aiming to make Uber your full-time job, or working this in addition to another part-time to make extra money , there are plenty of strategies that drivers use to boost how much money they make.

Surge Pricing

The easiest way to multiply your earnings is to drive at peak hours and in the busiest areas.

This is because Uber has a feature called surge pricing, which increases rates for riders when demand increases in relation to supply.

The map on your driver app will shade in areas where prices are surging in real time, as well as the surge rate in specific neighborhoods.

The surge rate is displayed as a multiplier that denotes how much more you will earn from base fares per trip.

For example, if you see a 1.5x, your earnings (before Uber’s standard fee) will be $15 for an Uber ride that would normally bring you in $10.

It’s not uncommon for surge to go up to 7x and beyond for busy events, and riders looking to head home quickly usually choose convenience over frugality.

Chasing these high rates doesn’t always pay off.

If you’re driving east from 10 minutes west, sometimes the surge will already be over.

However, if you’re already in the area or — better yet — you’ve kept an eye out for events, such as sporting events and concerts at your local arena or holiday season at the airport, you’ll start seeing patterns that will help you understand where demand will rise and last for a considerable amount of time.

Incentives

Once in a while, Uber will send drivers information about incentives they’re eligible for, or update promotions in the Uber app.

Typically reserved for events and other high-demand times, incentives help you earn extra money per trip.

Special incentives are especially helpful because they tell you exactly where you should be and when.

While they’re not available daily, like surge pricing, they often allow you to earn extra in addition to surge pricing benefits.

Who could pass up such a great deal?

Vehicle Options

While UberX is the primary vehicle option for both riders and drivers, you certainly aren’t limited to UberX requests.

If you have a vehicle that’s eligible for higher-cost services, you can strategize in two ways:

  • Opt into requests for multiple services to receive a higher volume of requests. For example, if you have a vehicle that’s eligible for Uber Black, you can likely double up by driving for Uber Black and UberX.
  • Only opt into requests for the most expensive service to receive higher earnings per request.

Referral Program

Lastly, Uber has an excellent referral program that will help you earn extra without too much stress on your part.

All you need to do is grab your unique invite code — learn where to find yours here — and share on social media or directly to your contact list via the app.

When a rider signs up with your referral code, you’ll just get a $5 credit for your next ride.

However, if a new driver signs up with your invite code, you’ll start earning cash.

Requirements and amount of earnings may vary by city, but referrals are always an easy way to make some extra money.

How Much Do Canadian Uber Eats Drivers Make?

Uber offers more than just ride-sharing. You can sign up to become a driver for Uber Eats. Download the driver app and start accepting food delivery requests near you.

Then you’ll just need to pick up the order from local restaurants and fast food joints and deliver them.

You get paid per pickup and dropoff completed, along with a per-mile rate. You’re able to track your earnings in the app and can see how much an order will pay before you accept it. Customers can also add tips, and those tips are yours to keep.

What’s the Average Pay?

After accounting for regular vehicle expenses, Uber Eats drivers typically make anywhere from $15 to $20 per hour after expenses. Just like the ride-sharing version of Uber, pay depends on how much you work, prompt delivery, and if you’re working during peak hours.

Uber Eats is a solid way to make extra cash and appealing because of its flexibility. However, the pay changes from week to week, so if you’re looking for a steady stream of income, you might want to reconsider.

How do Uber drivers get paid?

Uber pays drivers on a weekly basis either on Wednesdays or Thursdays. The payment process starts on Monday, which is when the previous week’s earning cycle ends and the current week’s cycle begins.

You will receive a weekly pay statement for the previous week on Tuesday, but it may delay until Wednesday. The statement is automatically added to your Uber dashboard and may also be emailed. It won’t come at the same exact time each week, so don’t worry when it’s a few hours late.

On Wednesday, you’ll receive a direct deposit of your funds via ACH payment. While the deposit happens on Wednesday, the funds may not clear until Thursday. If you still don’t receive the payment by Thursday, then contact Uber directly and they’ll sort the problem.

In case you prefer to get your Uber payments more frequently, you can sign up for daily pay. This will allow you to withdraw funds up to five times per day. The only condition is that you must have at least $1 in your Uber account.

If that doesn’t work for you either, you can sign up for Uber Instant Pay. In which case, payments from customers will go directly to your debit account. You can then use a debit card to withdraw the cash. But keep in mind that some banks take up to two days to process these payments. Therefore, while Uber may deposit the money in your account instantly, you might still not be able to access it until the bank has cleared the transaction.

What does your Uber pay statement show?

The Uber pay statement essentially shows your amount receivable and completed orders for the previous week. These are rides that were requested and paid for by customers between 12 AM on Monday and 11:59 PM on Sunday of the previous week. There are three ways of accessing your Uber pay statement:

  • Via the Uber app: this statement contains your total pay for the week, with each payment itemized.
  • Via email: this is a more detailed statement which shows your pay on a day-to-day basis. It also contains the “Other” section. More on this shortly.
  • Via partners.uber.com: this is the most detailed statement. It shows you pay on a fare-by-fare basis and includes a more detailed section for other payments. These are bonuses and reimbursements that you earned over the week. You can access this statement by visiting partners.uber.com.

Contents of an Uber driver pay statement

It’s undoubtedly critical to figure out how much Uber drivers make in NYC before you venture into the business. Just as important, you also want to know where that money comes from and the amount that each item brings in. Here’s a closer look as itemized in a typical Uber driver’s pay stub:

  • Fare: the amount you received from passengers who hailed your Uber. It doesn’t deduct Rider Fee nor Uber’s cut.
  • Uber fee: the percentage that Uber retains from your earnings.
  • Rider fee: this is an additional service fee levied on the customer per ride. However, you are the one to collect it from your passengers then Uber collects it from you.
  • Surge: shows how much you earned from Surge rides. These are drives that you made to areas with higher-than-usual request volumes.
  • Wait time: the amount you earn for waiting for a customer for more than two minutes.
  • Long pickup fee: the money you earn when you drive 10 minutes or more to pick up a rider.
  • Tolls: reimbursements for tolls that you paid when driving for Uber. They are charged to riders and then Uber collects and reimburses you.
  • Cancellation fee: the amount paid to you when a rider cancels a ride request two minutes after making it. It’s usually a $5 payout per cancellation.
  • Other: this section covers miscellaneous reimbursements, cleaning fee and fare corrections.
  • Other payments: these are amounts that you earned from referral bonuses, promotions, guarantees and other incentives.
  • Total: the total amount you will receive on your next direct deposit from Uber.

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