Is Driving for Uber Worth It in 2022 ?

4. How Much Do Uber Drivers Make?

Rideshare drivers are 1099 independent contractors. That means that they earn all of their income when they drive. You will not receive benefits such as health Insurance, vacation and time off or retirement benefits after working for the company.

Generally speaking, when a person makes and pays for a ride with the Uber app, Uber pays a commission on the ride’s price to the driver.

There are no official statistics about the drivers earnings. And Uber doesn’t list the payout information by market on their website. So, it is difficult to find out payout rates for your city.

Despite this lack of transparency, BestReferralDriver is a long trusted Uber Blog, so we will give you all the information you need to choose the best side hustle for you.

Basically, how much money you are going to make on Uber depends on your location, and how much time you are going to invest in it.

More precisely, according to the Uber app, what you are paid for a given ride depends on

  • The driving distance
  • The time
  • The eventual bonus

There is no fixed salary. Uber’s rates may vary by city, region, and time.

Here are some important thing you should know:

  • You make money based on the number of rides you provide.
  • The San Francisco headquartered company provides the estimated amount of earnings for every ride before you accept it.
  • Uber will not pay you for the distance from you to the pick up location. A smart driver avoid to accept pickups when they are often farther away
  • Uber doesn’t withhold taxes from earnings. You have to make estimated quarterly tax payments. Take a look at our complete guide to Lyft and Uber Taxes.

So, how much does Uber pay? We compared the average hourly earnings of our team that include drivers from California, Texas, Illinois and Washington.

The average of our hourly pay was $16.33.

Being our San Francisco member the highest paid Uber driver with an average hourly earnings of $24.16.

If you’re considering becoming an Uber Black driver, take a look at our article to find out how much money Uber Black drivers make (we piblished real earnings).

4. Submit an application

Once you have reviewed the requirements and determined that you meet them, it’s time to start the application. Before you apply, see if there’s a referral code. For instance, new drivers at Lyft can receive a bonus for completing a certain number of rides within a specific time frame using a code.

Create an Uber or Lyft account if you don’t already have one. Once you are logged in, select “drive with Uber” or “sign up to drive.” 

When applying to Uber, potential drivers can visit a local Uber Greenlight location to ask questions or discuss the application process.

For Lyft, applications may be held up because of background checks, which can take several weeks to process. You can check your application’s progress anytime at Candidate Checkr

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2. Ensure your car meets the vehicle requirements

Riders don’t want to be stuck on the highway with a broken-down car. It’s important for vehicles to meet specific requirements as rideshare cars.

Uber vehicle requirements

Vehicle requirements may vary across cities and states. In general, your vehicle must be no older than 15 years. You also can’t use a rental vehicle or a salvaged, rebuilt, or reconstructed vehicle, and it must have four doors.

Uber vehicles should be in good condition – meaning no cosmetic damage or commercial branding. All vehicles must pass an inspection.  

Lyft vehicle requirements

Lyft vehicles must also have four doors, and they must be able to open and close from both inside and outside of the car. Passengers must be able to unlock and lock their own doors, and there must be at least five seat belts.   

Engine, suspension, steering and brakes must be working properly. All the lights should function – including high- and low-beam headlights, turn signals, brake lights, and reverse lights.

Lyft goes into further detail, requiring that drivers’ tires have sufficient tread, the wipers and horn work, and the front seats move forward and backward. Air conditioning and heat should be working properly too.

Windows and mirrors can’t have cracks, and windows need to work right. Tailpipe and mufflers should be within the state standards and shouldn’t be modified. Lyft cars also can’t have body damage or dents.

What Are Uber Driver Requirements?

As long as you can pass Uber’s background check, you shouldn’t find it difficult to become an Uber driver (unless your city imposes some difficult requirements of its own).

Install the Uber app on your smartphone and create an account on Uber, including the bank account into which your earnings will be paid.

When you’re ready to start picking up passengers, tell the Uber app that you’re going online. Then wait.

Before long, the app will notify you about a passenger requesting a ride and show you a map with the passenger’s GPS coordinates. You pick up the passenger and take the person to his or her destination. Aware that the passenger can rate you afterward, you do your best to make the passenger feel welcome, comfortable, and satisfied.

Make sure you understand clearly where your pick up location is to avoid late arrivals

You just keep repeating this process, being notified about passengers and taking them to their destinations, until you’re done for the day. Then you tell the Uber app that you’re going offline. You can rate your passengers on their behavior.

Uber will deposit the money that you’ve earned into your bank account.

How do Rideshare Drivers Pay Taxes?

As independent contractors working on their own time, Uber does not deduct taxes from their driver’s pay. Therefore, they are responsible for their taxes. This means that you would have to set aside some of your earnings at the end of every year when Uber sends a 1099 form to include with your tax return for that year. This is also the standard tax practice for freelancers. You can also write off as car maintenance or gas as business expenses. This is why it’s important to keep track of your car’s mileage and gas station receipts.

Again, you have to take note of everything Uber does not cover for you. Also, check your state government for minimum wages laws for independent contractors like Uber drivers. Some states, like California, have laws that mandate workers’ compensation and health insurance. In California, rideshare drivers are considered employees and entitled to such benefits. Look into your state laws or consult an accountant for a more personalized approach to taxes.

What Does Uber Cover For Their Drivers?

While the last previous sections on what you will be responsible for maybe off-putting, the good news is that there are some costs that Uber covers for their drivers. In the event a passenger damages the interior or exterior, Uber will charge them a fee. The fee is based on the cleaning cost and then passed to the driver for them to use.

Another expense of driving that Uber covers for their drivers are accumulated tolls. The toll is added to the passenger’s ride bill as they are charged before getting in the car. This charge will also be visible to the driver.

Do Uber Drivers Have to Pay Anything to Uber?

Uber notably charges its drivers a service fee for each trip they complete. This would be the difference between how much the rider paid and how much you earned. Taxes or any surcharges are not included.

Uber Driver Requirements for your Vehicle

Uber also has a standard for the vehicles used for their clientele. However, the Uber Driver requirements may differ from one city and another. Uber’s website has a page that lists all their eligible vehicles for any zip code or vehicle make and model.

General Uber Driver Requirements for your vehicle are:

  • 10 years old or newer
  • Must have at least four doors
  • No salvage or restored title
  • License plates are valid and registered
  • Not a full-sized van
  • Not a taxi
  • Minimum of five total seat belts

Uber X Requirements

Uber offers different rideshare services based on the number of passengers and service speed. The type of car a driver has can also affect which service they are placed in. Uber X is pretty much the standard Uber service that services up to four riders. This would be the service for many mid-sized cars like the Toyota Prius, Honda Accord, or Civic.

These are the types of vehicles that are qualified for Uber X:

  • Car is 10 years or newer; some states may draw the limit at 15
  • At least five total seatbelts
  • Has four doors.

Uber XL Requirements

Uber XL is the service for larger groups of passengers looking for a ride. Rates are naturally higher because of this. Because of their storage space, XL Uber vehicles are often used for trips to the airport. This includes car models such as the GMC Acadia, Jeep Cherokee, and GMC Yukon XL, which can seat six people.

These cars must also satisfy the following Uber Driver requirements for vehicles:

  • Car is 10 or 15 years old or newer
  • At least seven total seatbelts
  • No vans or trucks

Uber Green Requirements

Uber Green is for cars that are electric or hybrid. If their carbon footprint is smaller than a standard car, then they will qualify as an Uber Green vehicle. This service is unique because passengers are given a surcharge of $1, which is split between the driver and Uber’s effort to reduce their own emissions. These cars are typically the same size as Uber X cars. Keep in mind that Uber Green may not be available everywhere.

Uber Green cars are typically:

  • Vehicle is a hybrid or electric model
  • At least five total seatbelts
  • Newer than 10 years old

Uber Black Requirements

Drivers with high-end, luxury vehicles are placed into the Uber Black service once their acceptance process is completed. This is the highest standard Uber sets for their cars and is applicable to both regular-sized cars and SUVs.

Uber Black and Uber Black SUVs usually include:

  • Black paint job
  • Leather seats and interior
  • Commercial car insurance and registration
  • Airport permits
  • Newer than 10 years

Uber Lux Requirements

Uber Lux is an exclusive service in New York and California. It features high-end car makes and models from brands like Porche, Mercedes, or Lexus.

They usually must be full-sized vehicles with the following features:

  • Four to six doors
  • Commercial car insurance
  • New than 10 years

Uber Eats Requirements

Uber Driver Requirements for food couriers are less stern than their other services since no passenger will be using them.

Virtually, any vehicle can be used for Uber Eats as long as it has:

  • Minimum of two doors
  • 20 years old or newer

How do you use the Uber Eats app or website?

Once you become a Uber Eats food delivery driver, you’re all set to jump right into the action. You can receive delivery requests via your Uber Driver app. Below are the basic steps for how it works – from getting the request to picking up the food to delivering the food to the customer.

Food Delivery Requests:

  • You’ll receive an audio notification through the app, just like a ride request.
  • Notice that the screen will say “delivery” instead of “Uber X.”
  • Tap the screen to accept the delivery request.
  • You’ll get info regarding the food order number, pick-up location, and customer name.

Pick-Ups:

  • Tap “navigate,” and the GPS will direct you to the restaurant.
  • Give the restaurant staff the food order number and customer name when you arrive.
  • Double-check the order before heading back to your car with the take-out packages.

Food Deliveries:

  • Tap “start trip” for directions to the delivery address.
  • Swipe up in the app for special delivery instructions regarding drop-off or parking.
  • The customer will receive a text as you approach, so they’re ready for you.
  • Knock or ring the bell if they didn’t request to meet you outside their location.
  • Greet the customer by introducing yourself with a smile and hand them their order.
  • Swipe “complete trip,” and you’re done with this delivery!

Sign Up With Uber Eats

Where can you download the Uber Eats app?

You’ll be able to find it in Google Play or App Store, depending on whether you have an Android or iPhone!

Sign Up With Uber Eats

What Sill Disqualify You From Uber?

Uber runs background checks on all aspiring drivers and won’t accept just anybody. Potential candidates with certain types of criminal convictions will be barred from driving. That can include those awaiting trial for serious offenses. People with restrictions on their driving license or a history of recent driving violations also risk being excluded.

What to consider before becoming a food delivery driver with Uber Eats?

Once you consider all the pros and cons of working as a delivery driver using the Uber Eats app, it’s clear that it provides a fantastic opportunity to earn extra money. However, before you become one, there are several things you ought to understand first. Below, we’ve listed some of the most significant considerations to have before applying for a food delivery driver with Uber Eats:

Prepare to work long hours

Working as a food delivery driver may seem pretty straightforward at first. And true, delivering with Uber Eats is not rocket science. However, it does require working long hours, and it can be exhausting, even when driving a car.

Other than that, engaging with customers can also get tiring after a while. Not to mention you’ll need to keep track of countless delivery requests and meet your targets. With all this in mind, you have to prepare yourself physically and mentally to do your job right. The best idea here is to estimate how many hours you’ll need to work to meet your targets and payment goals and adjust your work schedule accordingly.

Being a people person is a must

Although Uber Eats delivery drivers aren’t required to engage with customers as much as rideshare drivers, you’ll still need to communicate with other people. And if you’re hoping for a tip and good review, you need to be pleasant, even after working for several hours.

As a food delivery driver, you need to enjoy talking to people, or at least know how to act you enjoy it. There will also be numerous situations where customers won’t be exactly polite. In such cases, you need to know how to react in the most pleasant way possible. Also, remember that you can always report someone if they behave disturbingly. Don’t engage in conflicts, as you’ll be the one to lose.

Your income may depend on the location

Where you deliver food plays a significant role in how much money you make. For instance, smaller towns come with fewer food orders and lower pay. On the other hand, delivering in larger cities like New York, San Francisco, or Seattle will provide you with a relatively high income.

7. Good Drivers Get Rewarded

Good drivers get rewarded from Uber and from customers.

Uber Pro

Each month, drivers will have the opportunity to earn cash rewards by completing a certain number of rides. These rewards are on top of what you already earn with each ride and delivery.

Tips

Excellence in customer service is always rewarded with success. Riders may leave tips. Ah example: You can earn more money by helping riders with their luggage.

The Bottom Line

Is driving for Uber right for you? In certain states and cities, Uber offers a flexible way to earn money.

As the driver, you decide how much and which hours you drive, meaning that you can easily work for Uber as a part-time or full-time business, or fit it into your school or existing work schedule. You’ll need a vehicle that’s no more than 15 years old and should have a smartphone so you can use the app. But before you hit the road, make sure you familiarize yourself with the company’s policies and invest in a good dashcam to keep your riders in check.

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